Customer-based corporate valuation (CBCV)

Here comes a must-read article for CFOs, equity analysts and valuation professionals alike. “How to Value a Company by Analyzing Its Customers” by Daniel McCarthy and Peter Fader, published in Harvard Business Review Jan 2020. It is a primer about customer-based corporate valuation .

Customer relations are the single most important asset class of firms and corporations. The authors illustrate from various real examples how customer metrics drive value and stock prices, and how to implement them in investor communications and financial reporting.

The authors strongly advocate for investors to seek out customer related metrics from financial reports, and for executives to think about disclosing meaningful customer metrics.

MARKABLES is the only database provider of such metrics worldwide. On www.markables.net, you find over 8,200 different cases from all sectors how corporations report on customer portfolios acquired in business combinations (as per April 6th, 2020; number is continuously growing).