Firm valuation from customer equity: When does it work and when does it fail?

• Autores: Shoutong Thomas Zhang
• Localización: International journal of research in marketing, ISSN 0167-8116, Vol. 33, Nº 4, 2016, págs. 966-970
• Idioma: inglés
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• Resumen

  • Abstract Is customer equity a good proxy for a firm's market value? Using data from Netflix over 10 years, I provide evidence that a CLV-based customer equity model tracks market capitalization remarkably well under versatile conditions of stable growth, profit volatility, and even a broad market crash. However, if a firm shifts business model through radical innovation, the customer equity model requires recalibration to continue tracking market capitalization.