It's deceptive to try and calculate the valuation of a company, particularly a growing company, based on it's profit. People who manage those companies have tw

It's deceptive to try and calculate the valuation of a company, particularly a growing company, based on it's profit. People who manage those companies have two options - stop investing in growth, and customer acquisition, and collect profits off a smaller base of revenue, or, ramp up the growth, increase revenue, and then later collects profits off a much bigger base of revenue. As long as the company is well managed, and the growth opportunities will (eventually) become profitable - the better long term strategy is to invest in growth, and future revenues/profit, and not cut costs and try and collect profit on todays revenue.