This study investigates the valuation of Internet-based businesses. In particular the influence of the implementation of an e-business strategy on the value of a business by focussing on its financial performance, will be determined. Although the valuation of businesses in general has been researched extensively, research on the valuation of Internet-based businesses produced contradictory findings. No consensus could be reached regarding the most appropriate valuation approach to be used. Some research findings indicated that the discounted cash flow approach was the most appropriate while others stipulated that a new valuation approach should be developed. Many authors state that the move to include an e-business strategy is natural, and that businesses cannot afford not to include some form of e-business strategy. Previous research has also shown that by including an e-business strategy, it is possible to improve efficiency of the business and ultimately increase profitability. However, there was no emphasis on how the e-business strategy will influence the business valuation. In order to establish whether an e-business strategy will create value for a business, an empirical investigation was undertaken.