Customer-Based Corporate Valuation

Revolutionizing Finance


We help you better estimate company value by predicting future customer behavior  acquisition, churn, spending

Traditional corporate valuation methods often miss key customer-driven leading indicators of company value, which limits their accuracy

These methods are often​:

  • Not focused on modeling the customer-related activity which generates companies' revenue

  • Backward-looking, extrapolating off of historical financials

  • Less diagnostic for growing companies with negative cash flows

We incorporate predictions of customer behavior directly into the company valuation, leading to better accuracy and deeper insights


Customer-Based Corporate Valuation® services are:

  • Focused on the underlying customer behaviors and their impact on company value

  • Forward-looking – we predict future customer value and its impact on future financials 

  • Well-suited for growing companies with negative cash flows

We serve...

Gain a competitive edge in bidding by better understanding target's unit economics, more accurately estimating its value, and identifying levers to improve value of revenue streams

Improve valuations of current portfolio companies by regularly assessing and improving customer value

Maximize return on investment when exiting a company by identifying sources of company value ignored by traditional valuation methods

Learn more...

Working Together

Better understand health of your customer base and customers’ relationship to overall company valuation

Get more favorable investment / M&A terms by having a data-driven view of your firm's value which incorporates sources of value ignored by other valuation methods

Showcase full company value to outside investors by strategically disclosing key customer metrics directly linked to company valuation

Learn more...

Stock Market Graph

Better estimate investments’ value and gain deeper insights into unit economics using publicly available data (SEC filings, presentations, etc.)

Always have an up-to-date forward-looking view of portfolio investments

Provide a more insightful picture of company unit economics and set more accurate target prices in analyst reports and recommendations

Learn more...

Theta Equity Partners' approach is based on many years of research in customer value and corporate valuation
Image by Edwin Hooper

The Covid-19 pandemic strains businesses around the world, and uncertainty among consumers and in financial markets makes this situation uniquely difficult to navigate. Companies are making critical decisions now that could impact whether or not they survive. Learn how the Customer-Based Corporate Valuation lens can help you carefully think through and model possible future scenarios to address key questions you may be facing right now:​

Read Morgan Stanley's latest in-depth analysis of Customer-Based Corporate Valuation (CBCV) with real-world examples, including case studies from our work:


Read our latest Harvard Business Review article on How to Value a Company by Analyzing Its Customers and check out an interactive visual on how to calculate customer value (developed in collaboration with Bain and Company):

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We analyzed multiple public companies to gain deeper insight into their customer behavior and better estimate their true underlying value, for example:


Key insights: solid unit economics drive a $1.7-2B fair valuation with more upside potential

Read pre-IPO analysis


Key insights: good customer profitability and stable CAC, but high margin volatility and valuation uncertainty

Read pre-IPO analysis, Q2 2019 update, and CBCV Simulator


Key insights: constructive unit economics, but not enough to justify valuation

Read CLV analysis and valuation


Key insights: very attractive unit economics but long payback period

Read CLV analysis and valuation

Key insights: low repeat purchasing, losing money on average customer, overvalued stock price

Read academic paper and

2018 update

Customer-Based Corporate Valuation work is recognized by a leading corporate valuation expert and covered by reputable business and academic publications:


Key insights: healthy unit economics despite low purchase frequency

Read CLV analysis

Meet The Team
Joshua Bernstein
Director of Business Development

Prior to joining Theta Equity Partners, Joshua was a partner in a private equity firm, advisor to multiple firms and consultant at McKinsey & Co.

He holds an MBA from the Wharton School at the University of Pennsylvania and BA from Emory University.

Peter Fader
Co-founder, Director

Pete is a Professor of Marketing at the Wharton School of the University of Pennsylvania, author of the "Customer Centricity" book, and a winner of many prestigious research and teaching awards.


His expertise centers around the analysis of behavioral data to understand and forecast customer shopping/purchasing activities. He is a co-creator of the CBCV methodology.

Together with Dan McCarthy, he co-founded Zodiac, a predictive customer analytics firm, before it was acquired by Nike.

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Daniel McCarthy
Co-founder, Director

Dan is an Assistant Professor of Marketing at Emory University’s Goizueta Business School.


He is a co-creator of the CBCV methodology. His CBCV work won a number of prestigious academic awards, including the MSI Alden G. Clayton, American Statistical Association, INFORMS, and Shankar-Spiegel dissertation awards

He holds a PhD in Statistics from the Wharton School of the University of Pennsylvania

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Nickhil Nabar
Head of
Data Science and Engineering

Prior to joining Theta Equity Partners, Nickhil developed high-frequency trading strategies and execution systems on the ETF market making team at Citadel Securities.

He completed his undergraduate studies at Penn M&T, where he graduated summa cum laude with dual degrees from Wharton and Penn Engineering.

Val Rastorguev

Prior to joining Theta Equity Partners, Val was a consultant and expert at McKinsey & Co, where he worked on a wide variety of topics, including customer lifecycle management, finance, PE due diligence, and advanced analytics.

He graduated with honors from the Wharton School of the University of Pennsylvania with an MBA degree and holds a MSc degree in Math.

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Gabe Solomon
Data Scientist

Prior to joining Theta Equity Partners, Gabe constructed economic and statistical analyses for use in litigation at Analysis Group.

He completed his undergraduate and graduate studies at Penn, where he studied Math and Statistics before obtaining a Master’s in Data Science.

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Jonathan Delgadillo Lorenzo
Data Scientist

Prior to joining Theta Equity Partners, Jon conducted archival research for an economic history project in the Economics department at Harvard University.

He completed his undergraduate studies at Penn, where he graduated with a B.A. in Mathematical Economics.

Hallie Gu
Data Scientist

Prior to joining Theta Equity Partners, Hallie studied Statistics, Finance, and Data Science at the University of Pennsylvania. 


She graduated summa cum laude with a B.S. in Economics from the Wharton School and a Master's degree in Data Science from Penn Engineering.

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Ted Zhu
Software Engineer

Prior to joining Theta Equity Partners, Ted developed and deployed backend and full-stack web applications in data science and machine learning.

He completed his undergraduate studies at the Ohio State University in Computer Science and Engineering, as well as an MSc degree in Electrical and Computer Engineering from Duke University.