Customer Lifetime Value LTV
The total gross profit a company expects to earn from an average customer over the entire relationship.
What it is
Customer Lifetime Value estimates the total profit a business expects from a typical customer across the whole time they stay, not just one sale. A common version multiplies the average gross profit per customer per period by the average number of periods a customer stays, which is the inverse of the churn rate. It is a forward-looking estimate, so it depends heavily on the churn and margin assumptions used.
Why it matters
LTV sets the ceiling on what a company can rationally spend to acquire a customer, which is why it is paired with CAC in the LTV/CAC ratio. A high LTV relative to CAC means each customer funds the cost of winning the next one with room to spare. Because it relies on assumptions, small changes in churn or margin can swing the figure a lot.
How it's calculated
Multiply the average gross profit per customer per period by the expected customer lifetime, where lifetime is approximated as 1 divided by the periodic churn rate.
How Quintarthai uses it
Gross margin, a core LTV input, is shown directly in the key-metrics grid and Ratios tab of a company's deep-analysis page, so you can pressure-test a stated LTV.