eCommerce
Valuations for D2C brands and online retailers — AOV, gross margin, repeat rate and inventory turnover.
Online retail valuation looks deceptively simple — revenue, COGS, marketing — but the multiple compression between high-growth and stable cash-generative brands is the largest of any sector we cover. A D2C brand growing at 60% per annum on a 65% gross margin trades 3-4x the multiple of a 10%-growth brand with the same EBITDA.
The customer lifetime value (CLV) calculation is where most online retail valuations live or die. A 12-month repeat rate of 35% versus 50% can swing an EV/Revenue multiple by 2x. We model cohort behaviour explicitly — first-order contribution margin, second-order repeat rate, decay curve — and bridge to a defensible DCF.
Inventory turnover, working-capital intensity, and channel mix (own-site vs. marketplace vs. wholesale) materially affect cash conversion. UK comparables include both pure-play D2C and listed retailers with online channels; we screen carefully to match channel mix and category.
We anchor every eCommerce valuation on these inputs, with sensitivities run on the top three.
Based on UK-listed peer evidence, mid-2026. Indicative only — company-specific valuations require a triangulated football-field reconciliation.
EV / Revenue
0.8x – 3.5x
EV / EBITDA
8x – 18x
High-growth D2C brands cluster at the top of the EV/Revenue range; stable online retailers value primarily on EV/EBITDA.
We weight EV/EBITDA and DCF for established brands, layering an EV/Revenue cross-check. For high-growth D2C, the football field shifts toward DCF (with cohort assumptions) plus a comparable-companies range from listed D2C peers.
Every eCommerce valuation we run triangulates DCF, comparable companies and precedent transactions — and adds LBO, asset-based and Monte Carlo where they materially affect the range. The methodology is documented in our methodology disclosure.
Hypothetical examples illustrating the kind of work we do. Identified case studies will replace these as engagements complete.
Anonymised hypothetical — a profitable D2C brand commissioned a valuation to support a minority secondary; we modelled three growth scenarios with channel-mix sensitivity.
Anonymised hypothetical — modelled first-order vs. blended CAC payback and a five-year cohort repeat curve to support a £14M raise.
Free download
2026 D2C and online retail deep-dive: EV/EBITDA distributions by category, channel-mix benchmarks, and repeat-rate sensitivities.
Sector report
UK-listed peer comparables, multiples distributions, and sector-specific benchmarks. Watermarked for your team.
Try the free calculator for an indicative range, or request a quote for the signed report.