SP guess, page-16

No one knows bar the people inside the 4 walls at LifX on value. Revenue, NPAT or any form of EBIT are not going to give you the value here as they are crossing from cash flow negative to positive (we hope).

You need to be a mature business to use any of the above metrics, but revenue alone is a useless measure.

These guys are still growing, if Dave is to be believed they have only just had their first cash flow positive quarter, so with an additional 2 quarters to go you would hope this year sees a net profit in FY2019.

It is beyond my skill set to value potential. But it is fairly obvious to assume they are playing catch up on production, given their COGS increasing 50% YOY for the last 3 years, I would expect that to get to 30-40% of gross revenue in time, I would also assume they are fully staffed currently and the expenses will remain around $15m p/a and probably add a mil a year. Looking 3 years into the future, I would expect them to be valued somewhere between $140-191M, based of 40% growth in revenue p/a, what I said above and being valued at 3-3.5 times NPAT.

But today we are only buying potential and need to factor any form of possible disruption, competition or whether their products are a fad or going to become the norm.

My opinion only, don't make a decision based on it!