Valuation of Public Hosting Companies - January 31, 2013
Summarized below are estimates of the relative valuations of some public companies that have significant hosting operations. Please be aware that a number of these companies have other businesses that may also affect their valuations. (All data was taken from publicly available financial statements and please see this post for how we calculate Enterprise Value.)
As always, please feel free to contact us if you have any comments, or questions.
Cheval Capital, Inc.
Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell the stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.
Internet Infrastructure Coalition (i2C)
Cheval Capital is pleased to be a charter member of the Internet Infrastructure Coalition.
The I2 coalition supports those who build the nuts and bolts of the Internet. The coalition believes the continued growth of the Internet is vital for growing an environment of innovation in America and it seeks to engage in ways to foster success of the Internet and Internet infrastructure industry.
Please check out their website at http://i2coalition.com/ and lend your support!
Hillary Stiff & Frank Stiff
Hillary Stiff - PingZine 2012 Article
Data Center Knowledge Article
Valuation of Public Hosting Companies - July 13, 2012
HostingCon 2012
SingleHop Financing
Valuation of Public Hosting Companies - March 16, 2012
The WHIR - Derek Vaughan on "Web Hosting Still Growing"
Hillary Stiff has some comments in Derek Vaughan's recent WHIR column on Web Hosting & HostingCon 2011.
SingleHop - #25 on Inc Magazine's List of the Fastest Growing Companies
Congratulations to the guys at SingleHop for making #25 on Inc Magazine's list of the fastest growing companies in America. Their profile is here and there is a nice article on how they got started here.
HostingCon 2011 - How the Big Buyers Look At Acquisitions
This turned out to be a great panel with Hillary Stiff (Managing Director of Cheval Capital), Ditlev Bredahl (CEO of OnApp), Joe Bardenheier (SVP of Endurance), Mike Jones (CFO of Softlayer), and Sumeet Sabharwal (SVP of Navisite.) There were no slides but David Snead posted a description of the panel with some of its key thoughts on his WHIR blog. If you aren't aware of David Snead, he is a well regarded, Washington D.C. attorney that works exclusively with companies that provide the infrastructure supporting the internet and those who create and distribute products and services electronically. His website is here.
Hillary Stiff & Frank Stiff
HostingCon 2011 - Cheval Capital's Web Hosting M&A Market Overview
HostingCon 2011 - Why Your Business May Be Worth More (or Less) To You Than A Buyer
Comment on Public Hoster Valuations
Just a brief comment on the valuations of public hosting companies that I posted a few minutes ago. If you look back at the valuations over the last year, you'll see that while the companies generally have had good revenue growth, their valuation multiples (vs EBITDA) have seemed to expand at a faster rate.