How Much is Each "Subscriber" Worth?
Investors believe in subscription services, but putting hefty valuations on companies has shown its cracks
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Enterprise Value per Subscriber
With high growth startups taking a beating over the last year, premiums investors have put on valuations for subscriber growth have shown their cracks
Seeing the difference between these two dates shows just how euphoric the market was during peak COVID
When looking at other subscription service stocks, it’s best to use this metric to sense check how much investors are placing on each subscriber for how much they actually charge
Introducing you to this metric can also help you get creative with other metrics in other industries where similar KPIs exist
Until next week,
Cedar Grove Capital