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eCommerce · Sector methodology

eCommerce business valuation,
financial modelling & cash runway.

UK D2C brands and online retailers trade at 0.8x to 3.5x EV/Revenue. High-growth D2C reaches the top of that range; stable retailers value on EV/EBITDA.

AOV, repeat rate and inventory turnover decide where you fall. IVSC-compliant, signed.

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EV / Revenue range

0.8x to 3.5x

EV / EBITDA range

8x to 18x

UK listed peers · mid-2026 · indicative only

Why different

Why eCommerce valuations are different

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.

Metrics that matter

The inputs that drive eCommerce value.

We anchor every eCommerce valuation on these inputs, with sensitivities run on the top three assumptions that move the concluded range most.

Average Order Value (AOV) and AOV trend

Gross margin (target 50%+ for D2C, 30%+ for online retail)

12-month customer repeat rate

CAC payback (first-order vs. blended)

Inventory turnover (annualised)

Channel mix and channel margin

eCommerce multiples snapshot

Current market pricing.

EV / Revenue (NTM)

0.8x to 3.5x

EV / EBITDA (NTM)

8x to 18x

When each applies

High-growth D2C brands cluster at the top of the EV/Revenue range; stable online retailers value primarily on EV/EBITDA.

NTM multiples for UK-listed eCommerce comparables, mid-2026. Range reflects growth-stage dispersion; concluded valuations anchor on the sub-range that matches your unit economics.

Our approach

How we approach eCommerce valuations.

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 triangulates DCF, comparable companies and precedent transactions, and adds an asset-based overlay where it materially affects the range. The full methodology is documented in our methodology disclosure.

Contribution margin and repeat rate vary far more between brands than revenue does, so it is the forecast that narrows a range the multiple leaves open; financial modelling in business valuation shows how.

eCommerce engagements (illustrative)

The kind of work we do.

EBITDA-anchored valuation for a profitable home-goods D2C brand

Illustrative: a profitable D2C brand commissioned a valuation to support a minority secondary; we modelled three growth scenarios with channel-mix sensitivity.

Scale: £12M revenue · 18% EBITDA margin · 58% gross margin
Outcome: Secondary cleared at 12.5x EBITDA

Hypothetical example illustrating the kind of work we do. Named case studies will replace these as engagements complete.

Cohort-driven valuation for a Series-A skincare D2C

Illustrative: modelled first-order vs. blended CAC payback and a five-year cohort repeat curve to support a £14M raise.

Scale: £4.8M revenue · 42% YoY growth · 38% repeat rate
Outcome: Closed at 3.1x forward revenue

Hypothetical example illustrating the kind of work we do. Named case studies will replace these as engagements complete.

Free download

2026 eCommerce Valuation Report.

2026 D2C and online retail deep-dive: EV/EBITDA distributions by category, channel-mix benchmarks, and repeat-rate sensitivities.

Download free

18-page PDF · updated Q2 2026 · UK-listed peer data

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eCommerce business valuation,financial modelling & cash runway.