Using CB Insights company and valuation multiple data, we took a look at the price/user valuation multiples of 8 consumer tech companies including Instagram, Snapchat and WhatsApp to see what Tinder might be worth if it was a stand-alone private company. Is the hot matchmaking map, which just snagged Benchmark‘s Matt Cohler for its board and which just demoted its CEO, potentially worth more than parent company IAC (NASDAQ: IACI, Mkt Cap: $5.53B)?
We looked at the valuation multiples of consumer tech companies which have exited as well as still private companies where our technology picked up on real or rumored figures. As shown below, the average price to user (P/U) multiple across this group of consumer tech companies stands at 51.7x, with Viber at the low end at 9x and Twitter at the high end at 103x after its IPO day jump.
Based on these multiples, Tinder which is reported to have 18 million active users would be valued at around $1.85B which represents about 34% of IAC’s value using the highest end of recent consumer tech price to user (P/U) multiples.
At the average P/U multiple, Tinder’s implied valuation would drop to about $932M. But what if we multiply the consumer tech P/U multiples by 50 million active users – a figure Tinder is reportedly on track to hit if growth continues at its current rate?
This is where things get more interesting.
At the highest P/U multiple, Tinder would be valued at $5.15B – 93% of IAC’s current market cap. At the average of the multiples, Tinder’s implied valuation would hit $2.59B which is 47% of its parent company.
CB Insights users can play around with more company and valuation multiple data using valuation multiple search, which can be accessed directly here.
Want more valuation multiple data? Check out the CB Insights Venture Capital Database. Sign up free below.
This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
- Earnings Transcripts Search Engine & Analytics to get an information edge on competitors’ and incumbents’ strategies
- Patent Analytics to see where innovation is happening next
- Company Mosaic Scores to evaluate startup health, based on our National Science Foundation-backed algorithm
- Business Relationships to quickly see a company’s competitors, partners, and more
- Market Sizing Tools to visualize market growth and spot the next big opportunity