How does customer acquisition cost (CAC) affect the company valuation?
It is all math as the valuation will be based on numerous items from revenue/ profit and lifetime value of customers to your brand value but let’s focus on CAC. If you pay $1 for a Customer who only spends $2 then this is a small margin but if you can show that you spend $1 CAC and they spend $10 and buy every 6 months you can see this would have more value to a buyer?
