Analysing listed Internet companies as one homogenous group there is no doubt that revenue is the strongest predictor for Internet market value. In fact my research showed that the regression between revenue and market value had an R2 as high as 0.93.
However an analysis at the disaggregated business model level reveals another story. In fact almost every Internet business model has a variety of different drivers.
These results also highlight the usefulness of both financial and non-financial measures in explaining market valuation between different business model categories.
Interestingly some business models have very clear value drivers and others do not.
Categories with a higher proportion of B2C companies focus more on traffic than B2B companies, which seems logical. B2B firms are more transaction orientated and the quality and type of traffic is more important than the volume. In B2B firms the financial metrics were much more important than traffic.