Total profit a customer generates over their relationship with a company.
Calculated using gross margin, retention rate, and discount rate. LTV/CAC > 3 generally healthy; > 5 signals underinvestment in growth. Used heavily in subscription, e-commerce, and consumer fintech businesses.
Total profit a customer generates over their relationship with a company. Calculated using gross margin, retention rate, and discount rate. LTV/CAC > 3 generally healthy; > 5 signals underinvestment in growth. Used heavily in subscription, e-commerce, and consumer fintech businesses.
In financial metrics, LTV (Lifetime Value) is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Calculated using gross margin, retention rate, and discount rate. LTV/CAC > 3 generally healthy; > 5 signals underinvestment in growth.
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