Say hello to the Internet User Value Index (ValUDex) and Page View Index (PageDex).
These two new indices join the industry-leading Internet Stock Index (ISDEX) as a three-part valuation method from yours truly to get inside the numbers, bring to life the differences between companies and perceived worth, and generally try to walk the shining path to a more enlightened, or at least, semi-brightened numbers game.
Go ye forth and multiply, or at least make heavy use of the DEX suffix:
THE WEB INDEXES (WEBDEX)
| ValUDex | |||
| Internet User Value Index | |||
| Web Property | January | Market cap | Value |
| Web Brand | Users | or PMV * | Per |
| (millions) | (millions) | User | |
| Yahoo | 27.9 | $ 2,737 | $ 98.19 |
| Netscape.com* | 21.4 | $ 600 | $ 27.99 |
| Microsoft.com* | 15.7 | $ 1,500 | $ 95.70 |
| Excite | 15.2 | $ 701 | $ 46.21 |
| Infoseek | 11.7 | $ 379 | $ 32.40 |
| AOL.com* | 11.2 | $ 1,000 | $ 88.94 |
| GeoCities | 10.5 | $ 300 | $ 28.58 |
| MSN | 7.2 | $ 600 | $ 83.71 |
| Lycos | 6.8 | $ 599 | $ 88.18 |
| AltaVista* | 6.8 | $ 325 | $ 48.05 |
| TOTAL | 134.3 | $ 8,740 | $ 65.08 |
| AVERAGE | 13.4 | $ 874 | $ 65.08 |
| * our est. private market value for the .com Web site only | |||
| User data: RelevantKnowledge | |||
| ValUDex is a creation of Mecklermedia | |||
| Market cap as of 02.18.98 | |||
| PageDex | |||
| Page View Value Index | |||
| Web Property | Average Daily | Market cap | Value |
| Web Brand | Page Views | or PMV * | Per Avg. Daily |
| (millions) | (millions) | Page View | |
| Yahoo | 65 | $ 2,737 | $ 42.11 |
| AOL.com* | 35 | $ 1,000 | $ 28.57 |
| GeoCities | 35 | $ 300 | $ 8.57 |
| Netscape | 33 | $ 600 | $ 18.18 |
| Excite | 30 | $ 701 | $ 23.35 |
| Microsoft.com* | 30 | $ 1,500 | $ 50.00 |
| MSN | 29 | $ 600 | $ 20.69 |
| Infoseek | 22 | $ 379 | $ 17.23 |
| Lycos | 19 | $ 599 | $ 31.50 |
| AltaVista | 18 | $ 325 | $ 18.06 |
| TOTAL | 316 | $ 8,740 | $ 258.25 |
| AVERAGE | 32 | $ 874 | $ 25.83 |
| * our est. private market value for the .com Web site only | |||
| Page view data: Mecklermedia estimates based on MediaMetrix | |||
| PageDex is a creation of Mecklermedia | |||
| Market cap as of 02.18.98 |
In Mecklermedia's Internet User Value Index (ValUDex) for private firms, we estimate value based on comparables and experience. For public companies such as Microsoft (NASDAQ:MSFT), which owns several Web brands or sites, we estimate the .com part on its own, and leave the company's other divisions not valued.
Does that mean that Excite (NASDAQ:XCIT) at $46.21 per user is a bargain compared to Yahoo! (NASDAQ:YHOO) at $98.19 per user? You decide. A number of factors influence, including first to market status, overall audience size, brand awareness, and working capital (Yahoo! has more than $100 million vs. Excite's $27 million). Ultimately, it's a going forward or expectation basis that determines much of perceived value.
In Mecklermedia's Page View Index (PageDex) it shows GeoCities (which just went through another round of financing and we estimate could be worth about $300 million) at $8.57 per page view, a substantial discount to any of the others based on that metric alone. With these two new metrics you'll be there if GeoCities paves the way to tomorrow's online service.
With ValUDex and PageDex, you'll be inside the numbers in a space where value is not only in the eye of the beholder but in constant flux.