LTV
Fundamental analysisLifetime value — the total contribution a single customer is expected to produce across the whole relationship.
Only meaningful next to CAC. Below one, the company is buying revenue rather than earning it.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
Lifetime value — the total contribution a single customer is expected to produce across the whole relationship.
Only meaningful next to CAC. Below one, the company is buying revenue rather than earning it.
Customer Acquisition Cost — marketing spend divided by the number of new customers it brought in.
Rising CAC means growth is getting more expensive. Read it against lifetime value: below one, every customer acquired is a net loss.
One occasion on which a market segment was open, from its opening procedure to its closing procedure — the unit a daily bar on a chart represents.
A daily candle is a session, not a day. The chart draws no gap for weekends or holidays, so anything you count in bars is counted in sessions while interest, time value and news accumulate in calendar time.