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When looking at investing in growth companies that do have impressive revenue growth rates, however don’t produce a profit yet, what sort of simple valuation ratios can I look at?

When looking at investing in growth companies that do have impressive revenue growth rates, however don’t produce a profit yet, what sort of simple valuation ratios can I look at. I assume its Price to Revenue and EV to Revenue are some of the metrics you look at.

Can you inform me if there are others and also with the two I mentioned what would be considered on the upper end of the scale in terms how expensive they are. For example would Price to Revenue of 25 and EV to Revenue of 23 consider being extremely expensive?

I am looking at AD8 and trying to get a grasp on a relative basis is share price stretched and I am looking for a few markers and tips on how to evaluate such growth companies.


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Is there some merit in my plan to partake in any off-market Buyback?

Lets say the likely CBA off-market Buyback is $86 (14% disc., K$26, FF Div $60). You’ve said its great for low rate tax payers only. I have a contrary view & welcome your comment. As a high rate tax payer, Im punting that if I breakeven or even lose 10%, I still get a massive tax loss allowing me to release tax free funds tied up in my CSL & Afterpay (both purch at about $10). Surely theres some merit to my plan to partake in any off-market Buyback?


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