GoDaddy

Methodology

GoDaddy's domain registration and web hosting business generates highly predictable recurring revenue with strong customer retention from domain renewals. The transition toward higher-value website builder and ecommerce services improves profitability. This calculation works well given the recurring revenue model, though customer acquisition costs can fluctuate significantly with marketing spend efficiency.

Methodology

GoDaddy typically commands moderate PEG ratios reflecting steady growth from upselling value-added services to the domain customer base. The company's market position in small business web presence supports consistent execution. Compare to other SMB-focused software platforms to assess whether GoDaddy's domain lock-in and expanding service portfolio justify its current multiple.

Methodology

GoDaddy does not pay dividends, focusing capital on product development, marketing, and strategic acquisitions to expand its platform. Management prioritizes growth investments over shareholder distributions. Total return depends entirely on GoDaddy's ability to increase wallet share with small businesses beyond basic domain and hosting services.