Methodology First: Our Transparent Model for Estimating Alex Hormozi’s Net Worth

Alex Hormozi’s net worth is a moving target, so I start with a transparent model before I touch any numbers.
I’ll show you the assumptions, the equations, and the sanity checks I use so you can replicate or challenge every step.
No fluff, just the framework you can reuse for any operator-creator with public and private income streams.

‍

‍

1) What Problem I’m Actually Solving

I’m not chasing a viral number.
I’m building a repeatable method for estimating a private individual’s wealth with incomplete data.
I define the data gaps, bound them with ranges, and publish the logic so others can audit it.
Goal: a defensible range, not a clicky headline.

2) My Definition Of “Net Worth”

Net worth = Fair market value of personal assets minus personal liabilities at a point in time.
I include liquid assets, private-company equity, intellectual property, and accrued cash distributions.
I exclude brand value unless it monetizes as a sellable asset.
I treat household assets jointly if ownership is commingled.

3) Scope And Perimeter: What I Include vs Exclude

I include book royalties, media revenue, equity in operating companies, and cash or securities.
I exclude primary residence furniture, cars used for lifestyle, and speculative tokens without proof of size.
I include spouse co-ownership where filings or public statements imply shared economics.
I flag anything uncertain and put it in a separate “speculative” bucket.

4) Ownership Map Before Valuation

I list entities, owners, and rough stakes.
I sort them into HoldCo, OpCos, IP, and Media.
I note where control differs from economics.
I only value the economics that flow to Alex directly or via shared marital interests.

5) Income Stack: How The Money Likely Flows

I map four layers: content, education/IP, services, and equity.
Content drives discovery and low-ticket cash.
Services and advisory drive mid-ticket.
Equity drives asymmetric upside through distributions and exits.
Why it matters: different layers demand different valuation methods.

6) Books And IP: Royalties, Margins, And Tail Value

I estimate book revenue using list price × units × royalty rate or self-pub margin.
I discount for returns and retailer fees.
I add a “long tail” value using trailing twelve months (TTM) and a 2–4× multiple if self-published.
I treat workbooks, events, and bundles as separate SKUs if data is available.

7) YouTube + Podcast: Media Revenue Without Guessing Wildly

I model YouTube with RPM ranges and sponsorship floors.
I model podcast with CPM ranges across host-read ads and network deals.
I haircut for unsold inventory and platform rev-share.
I keep media in a conservative band unless there’s direct disclosure.

8) Education, Events, And Digital Products

I treat courses and events like product businesses.
I estimate gross using public pricing × attendance or reasonable conversion from audience size.
I subtract payment processing, refunds, affiliates, and support.
I capitalize only the profit stream if it behaves like a durable franchise, otherwise I leave it as cash flow, not equity.

9) Acquisition.com And Private Stakes: Choosing The Right Lens

I use three lenses to value private stakes.
Income lens: normalized EBITDA × multiple × ownership %.
Market lens: revenue multiple for high-growth, with a haircut for concentration.
Build-vs-buy lens: cost and time to replicate the same cash flow.
I take the lowest of the three for base case.

10) Multiples And Discounts I Actually Use

For profitable, durable SMB SaaS or service hybrids, I start at 5–9× EBITDA.
For education or agency-heavy cash flows, I use 3–6× EBITDA.
For high-growth SaaS with stickiness, I may use 2–6× revenue with retention proofs.
I apply size, key-person, and customer concentration discounts before multiplying.

11) Cash Distributions vs Retained Earnings

I separate what’s already paid out from what remains in the company.
Distributions increase personal cash or securities.
Retained earnings raise equity value only if they convert to durable profits.
I avoid double-counting by checking the equity value post distribution.

12) Taxes And Jurisdiction Effects

I model effective tax rates on books, media, and pass-through entities.
I account for state taxes if residency is clear.
I reduce after-tax cash by estimated liabilities due but unpaid.
I do not net-operating-loss my way to fantasy numbers unless there’s evidence.

13) Debt, Leverage, And Contingent Liabilities

I search for personal guarantees, business lines, and acquisition financing.
If unknown, I assume modest working capital debt for operating companies and zero for personal unless stated.
I subtract known debts from personal net worth.
I note earnouts or buybacks as contingent.

14) Joint Ownership With Spouse

If assets are branded as a joint enterprise, I treat economics as shared.
If ownership is separate, I allocate based on disclosed stakes.
For household assets, I present household net worth and an Alex-only view if separable.
I disclose the assumption clearly in the model.

15) Point-In-Time vs Rolling Average

I publish an as-of date.
I provide a 12-month rolling average for volatile media income.
I update equity values annually or when material events occur.
I keep an archive of prior versions for transparency.

16) Scenarios: Bear, Base, Bull

I build three columns with explicit drivers.
Bear: lower units, lower margins, lowest multiples, higher taxes.
Base: mid-range all around.
Bull: high units, operational excellence, but still realistic multiples.
I present a range, not a single magic number.

17) Sensitivity Analysis: What Actually Moves The Needle

I test sensitivity to book unit estimates, RPM/CPM bands, and EBITDA multiples.
I highlight which assumptions change the output most.
I expect private equity multiples and portfolio EBITDA to dominate the variance.
I focus debate on the variables that matter.

18) Cross-Checks And Sanity Tests

I compare implied income to observed lifestyle and philanthropy.
I check hiring pace and headcount costs in public-facing teams.
I reconcile media cadence with probable revenue.
I look for contradictions between brand claims and filings.

19) Source Hierarchy And Evidence Rules

I rank sources: filings and contracts, company announcements, direct interviews, then third-party estimates.
I never treat creator dashboards as audited.
I link to every primary source when available.
If a claim can’t be sourced, I mark it as an assumption.

20) How I Publish The Model

I share the spreadsheet with labeled tabs: Summary, Assumptions, Income, Equity, Taxes, Scenarios, Sensitivity, Sources.
I timestamp the version.
I explain every input in plain English next to the cell.
I invite readers to duplicate the file and change assumptions to see their own range.

FAQs

Why do you show a range instead of a single number.
Because inputs are uncertain and a range is more honest and useful.

Do you include Leila’s share in Alex’s net worth.
Only if assets are jointly owned or economics are shared, which I disclose clearly.

How do you value brand or “influence.”
I don’t, unless it monetizes as a sellable asset with consistent cash flows.

Is YouTube revenue a big driver.
It’s meaningful, but portfolio equity and distributions usually drive the top line of net worth.

Why use EBITDA multiples for private companies.
Because cash-earning durability matters more than vanity revenue when buyers underwrite risk.

Do you count paper valuations from venture-style marks.
Only with heavy haircuts and only if there’s outside price discovery.

How often do you update the estimate.
Annually for equity, quarterly for cash flows, or when a material event is disclosed.

How do taxes change the picture.
They reduce distributable cash and therefore personal net worth, so I model effective rates, not theoretical minimums.

What if a key number is completely unknown.
I bracket it with conservative bands, show the math, and run sensitivity to surface its impact.

Can readers replicate this at home.
Yes.
Grab the structure, plug your own assumptions, and publish your version with your sources.

Conclusion

My methodology-first approach to Alex Hormozi’s net worth puts transparency ahead of theatrics.
Define the perimeter.
Choose valuation lenses that match the cash flows.
Publish the assumptions, the ranges, and the sensitivities so anyone can audit or improve the model.
That’s how we keep the conversation honest and the numbers useful.
Book a demo at https://hoook.io to see how our customers getting up to 100% traffic growth and up to 20% revenue increase.

‍