đ Amazon Brand Multiples
Well-managed Amazon brands (>50% Amazon sales) with stable finances are valued at 2.0xâ3.0x EBITDA.
Multiples can vary from 1x to 4.5x, depending on risk and growth.
Brands with over 10-15% EBITDA margins and stable sales tend to fare better.
Smaller, less differentiated brands struggle to find buyers, as investors become more selective.
đ D2C Brand Valuations
D2C brands sell directly to customers via their own websites.
Direct control over branding, pricing, and customer relationships drives up value.
D2C brands enjoy higher multiples, ranging from 2.5x to 7.5x EBITDA.
Despite post-COVID setbacks, D2C continues to see growth.
đ Classifieds & Inventory E-commerce
Classifieds lead with an EV/Revenue median multiple of 2.8x.
Inventory-based e-commerce has one of the lowest, with a median of 0.7x.
Price comparison platforms top the chart with a 4.4x multiple at the upper quartile.
đď¸ Marketplace Trends
Marketplaces are valued with revenue multiples between 0.7x and 3.4x.
Established marketplaces with slow growth receive lower valuations (0.7x).
High-growth or strong market position marketplaces reach up to 3.4x multiples.
The "Rule of 40" (sum of profit margin and growth over 40%) helps assess marketplace potential.
Will Amazon brands or D2C see better growth in 2024?
