Popular websites can make a lot of money through monetization channels such as ads, but when it comes to buying an existing site, why is the multiple on earnings so low? For example at the moment a site is being advertised for $25,000 with a net profit of $1,105/month.
On a 2x multiple, it would take two years to recoup the initial investment and then you would be making 50% annual return on investment which seems insane relative to the ~10% in stocks or ~7% in real estate? Are assumptions on continued monetization the real killer? What kinds of risks are not priced in, or why isn't this taught as a popular investment choice relative to real estate or stocks?