Calculating App Worth & Value – New Feature

EstimatedAppWorth2

We are proud to announce a new major feature for the App Market Analyzer, Estimated App Worth Valuations!

What is It?

Through some advanced logarithmic calculations and some inventive ingenuity (see below), we are able to determine an approximate value for an app.  If you have ever wondered how much an app is worth, now you can know!   You can see an apps estimated worth within most search results and on the main app insight profile pages.

Estimated App Worth New Feature 1

Estimated App Worth New Feature 1

 

Estimated App Worth New Feature 2

Estimated App Worth New Feature 2

 

This new feature can be enabled within the setting’s under “Column Customization”.

Estimated App Worth New Feature 3

Estimated App Worth New Feature 3

 

The Challenges With Trying to Determine an Apps Worth

During our initial research into finding good app valuation logarithms we came to a conclusion;  everyone is wildly off from each other when trying to determine an apps worth.  This is partly because most of the valuable information needed to evaluate an app properly is hidden behind closed doors.  So we set out to build our own formulas with the best public data possible.

First and foremost, all online app values are estimation’s at best, including our own.  Unless we have access to the real financial records, including metric use data, its impossible to find the exact worth of an app.  But with the plethora of  information that is provided publicly, some logic and a little estimation we can find an approximate value.

There are four main billing models that most apps adhere to:

  • Paid Apps.  These are the apps that cost money upfront within the market places.
  • Paid Apps with IAP (in app purchases).  Not only do these apps have an upfront fee, they also sell items within the app.
  • Free.  These apps are provided free of cost, but are usually monetized through in app ads.
  • Free with IAP.  Also know as freemium, the app is still free but uses in app purchases to support its development.

When trying to evaluate an app worth, each of the different billing models needs to be taken into account and need their own unique formulas to decide an app’s worth.

 

Important Pieces To The Puzzle

The metric stats we don’t have that would be invaluable when determining an apps worth:

  • Actual user installs/downloads
  • Investment capital or current company valuations
  • User engagement metrics
  • Actual income from Ads, IAP and Initial Purchases

With that said, we do have a lot of metrics that can be gathered from several public sources for an app.  This data allows us to create metric algorithms that feed final variables into our the app worth formula.

These include:

  • $ Installs Worth
  • $ Ratings Worth
  • $ IAP Worth
  • $ Purchase Worth
  • Our Own Salt & Pepper

We based our final app worth calculations not only on the actual app value but also on possible monetization value.

Estimated app worth is currently not available within the Free Trial or Standard versions.  This feature is only available within the Pro version.  Upgrade Now!



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