The Next A2M, page-119

My 2 cents is that new investors should be very careful about buying a position in CLV at the moment.

It is undoubtedly a great little Co. with a bright future - but the stock has risen so much recently and a SP and the underlying Co. are 2 different animals. One could argue that it was undervalued before and I think this is true given that it was growing nicely (see below), but the results will have to continue being outstanding, in order to maintain this kind of SP action.

1H18 CLV management forecast was:
"Based on current demand patterns, new customer growth and ongoing stability of regulations in the Chinese market, the company expects second half order patterns to be consistent with sales in the first half of FY18 "
Assume that revenue guidance also gives them more-or-less the same profit as 1H - so 1.93 cents per share in 2H. Let's be generous and say they exceed it by an arbitrary 20%, so 2.31 cps for 2H18. 1.93 + 2.31 = 4.24 cps EPS for FY18 - That'd be a great Y-O-Y FY result - they had EPS 2.20 cps in FY 17 and EPS 1.34 cps in FY16.

But at a SP of $1.70, it means a forward P/E of 40 - that's pretty darn high. High Growth stocks often trade for high P/E multiples - but frankly, that's out of my comfort zone. Who knows what the market will think though? To put it in context, the FY17 result of EPS 2.20 cps was announced 20 SEP'17, when the SP was ~$0.45 (that's a P/E of 20.4).
But the 1H18 result was fantastic though and hence a higher P/E ratio is certainly warranted now - but has the price gotten ahead of itself? I don't know - the market will be the judge of that.