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Understanding key valuation metrics is essential when building a financial model for e-commerce businesses. This video breaks down customer and financial metrics, explaining how they impact investment decisions and business performance. Customer Metrics Overview: - Net Promoter Score (NPS) - Average Order Value (AOV) - Customer Lifetime Value (CLV) - Active Customers & Churn Rate - Total Addressable Market (TAM) - Customer Acquisition Cost (CAC) - Average Revenue Per User (ARPU) Financial Metrics Overview: - Gross Profit & Gross Margin - LTV/CAC Ratio & Its Importance - Sell-Through Rate & Inventory Turnover - Gross Merchandise Value (GMV) vs. Revenue - Enterprise Value Multiples (EV/Revenue, EV/Gross Profit, EV/EBITDA) By the end, you'll have a strong understanding of how these valuation metrics impact e-commerce businesses, how they are calculated, and why they matter for investors, analysts, and financial professionals. This video is for: 🔹 Students & professionals learning financial modeling for e-commerce. 🔹 E-commerce entrepreneurs looking to optimize financial performance. 🔹 Startups & business owners preparing for funding or valuation discussions. 🔹 Investment analysts & finance professionals working in the digital commerce space. Chapters: 00:00 - Introduction & Overview 01:36 - Customer Metrics 03:52 - Financial Metrics 06:40 - LTV/CAC You can learn more about this topic at https://corporatefinanceinstitute.com/resources/knowledge/valuation/startup-valuation-metrics-internet And you can enroll in our Startup / e-Commerce Financial Modeling & Valuation course at https://corporatefinanceinstitute.com/course/ecommerce-startup-financial-model-valuation Now that you understand the valuation metrics used in e-commerce, let's take it a step further. In our in-depth financial modeling tutorial, you'll learn how to build a startup valuation model from scratch, complete with assumptions, financials, cash flow projections, and funding analysis. Watch it next and start applying these concepts in a real-world scenario: https://youtu.be/ecorJY5uzaQ #Valuation #FinancialModeling #FinancialAnalysis #ValuationMetrics
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