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"Broadcast properties typically sell for 11 times operating cash flow, but the way prices are being bid up, some properties could fetch 18 times operating income in the coming months," says Robin V. Flynn, senior analyst at Paul Kagan Associates, the media valuation consultants in Carmel, Calif.
The company started out as AdSafe but took on its current name in 2012 as part of a rebranding effort away from ad verification (i.e., confirming that an ad ran on the intended site and reached the intended audience) and towards "media valuation" (helping advertisers find and buy high-quality impressions).
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The bank said: "Media valuations have converged as the market has tarred all media with the same brush.
Up until now, ecommerce valuations have been relatively reasonable compared to social media valuations.
Although to the general public, and much of the media, the valuation of tech startups may suggest a speculative bubble, it seems more indicative of investor confidence.
Freud Communications made £8.5m in profits last year, valuing the company at about £90m on a standard media sector valuation by City analysts of 10 x profits.
But her media stock-price valuation has never ridden as high as in the four months since she left her marriage to Tom Cruise and filled the tabloids' front pages, along with her astonishingly photogenic six-year old daughter Suri.
He triggered the deal with Disney just prior to a drop in both media and Disney valuations.
Since then, valuations of media rivals have crumbled.
Typical valuations given media properties would make a magazine like New York worth $20 million to $30 million.
Alongside Facebook and Twitter's valuations, social media firms including Groupon and LinkedIn are planning to raise billions in IPOs.
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