E-Commerce Valuation Calculator [2024 Multiples]
Instantly calculate the value of your E-commerce business using up-to-date e-commerce valuation multiples:
Valuation:
$40,000
Simple E-Commerce Valuation Formula
In this e-commerce valuation calculator, the multiples on profit range from 0x (0% profit margin) - to 12x+ for business with a profit of 5m+ with a strong brand.
The factors that influence your e-commerce startup's valuation (next to revenue) are various. Click here to scroll down to the 7 most important ones.
E-Commerce Profit Multiples Over Time (2019 - 2024)
These are the recent profit multiples based on established companies on the S&P 500. As you can see, there were clear increases in e-commerce valuation during the recent pandemic:
Source: S&P Capital IQ, Carlsquare analysis
7 Factors Influencing Private E-Commerce Valuation Multiples
If you own a private e-commerce company, you might be able to achieve an exit based on revenue multiples. Buyers are open to this discussion, when your company fits the following 7 factors:
| Revenue multiple | Less than 1x | More than 2x | |
|---|---|---|---|
| 1 | Yearly revenue growth | Less than 20% | More than 40% |
| 2 | Recurring customers | Less than 20% | More than 40% |
| 3 | Profit margin | Less than 10% | More than 15% |
| 4 | LTV/CAC (Lifetime Value divided by Cost per Acquisition) | Less than 3x | More than 4x |
| 5 | Market position / brand | Limited | Strong |
| 6 | Management team | Less experienced | Strong |
| 7 | Breadth of offering / target groups | Narrow | Wide |
Source: Carlsquare analysis
3 Ways To Increase Your Private E-Commerce Company Valuation (2024 And Beyond)
The market of e-commerce has shifted in the recent years. The marketing strategies that have worked 10 years ago will not necessarily work now. Here's what I recommend you focus on:
Would You Like Me To Mentor You To Increase Your E-Commerce Business Valuation?
Hi, I'm Lorenz. 👋
I've founded BoxRope.com, along with a good friend of mine. We took it from $0 revenue per year to now $1m+, with a recent valuation of $2m - $3m.
- Our return on ad spend is 6.2 - 7x.
- We're highly profitable with a profit margin of 31%.
- We've worked with one of the biggest niche celebrities (boxers such as Devin Haney & Teofimo Lopez) - and even Conor McGregor follows us.
In short, our company is optimized for a high valuation by building a brand.
Do you want me to help you do the same? Fill out the form below to see if you qualify:
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