Multiple/Valuation Q

February 05, 2022

by a searcher from Hebrew University of Jerusalem in Israel

Hi, Multiples/Valuation Q - What do you think is a reasonable SDE multiple for a Shopify eCommerce store with the next parameters -

Revenues###-###-#### - $2M, 2021 $1M
profitable - SDE Margin###-###-#### %, ###-###-#### %
DTC customized products in the gifts niche
Most customers acquisition is through FB, the main reason for the results decrease is the increasing CPC/CPA.
January 2022 is also a 50% decrease Vs. Jan 2021. Thanks

Reply by a searcher
from DePaul University in Boca Raton, FL, USA

Along the lines of what Terrence said,FB CPC/CPA on average has been increasing and with the ios14 changes in mid-2021, attribution has been very hard, If FB is in your wheelhouse, this can be an opportunity to turn it around. But, to answer your original question, the multiplier on something like this should be 2-3. Feel free to reach out if you would like to discuss this further.

Reply by a searcher
from Pepperdine University in Boise, ID, USA

Traffic to the store is the most important aspect.As soon as I saw FB, I cringed.Very fickle traffic source, especially over the last few years.When I read the 50% YOY decrease, it's an absolute no go from my viewpoint.You live and die by your source of site traffic.

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