GTLB · investment memo
CAUTION - THIS IS A PRICE-IMPLIED REQUIRED margin, not an underwritten assumption. The primary run is on an EV/SALES basis (GAAP operating margin is -5.14%, so there is no interim EBIT to discount) and therefore assumes NO terminal operating margin. GTLB_Valuation.md s2 second solve: holding growth at 23.1% and solving for the required terminal EBIT margin gives 16.6% at 15x / 12.4% at 20x / 10.0% at 25x / 8.3% at 30x. Read against a CURRENT non-GAAP operating margin of ~+15.7% (GAAP -5.14% plus SBC of 20.8% of revenue): the company already earns roughly the terminal margin its price requires, before SBC. The screen's 0.107 is rejected as a defect - the identical 10.7% was assigned to four of five cluster names and described as an industry median.
Four distinct questions, one field each. A price is not a thesis: the trigger below forces a re-underwrite and freezes further purchases — it is never an automatic sell.
A daily close below $27.75 triggers a mandatory re-underwrite and freezes further purchases. It is not an automatic sell unless a separate fundamental invalidation condition has been breached.
Not stated. This name has no falsifiable invalidation conditions on file, so it cannot be risk-monitored. That is a gap in the research, not a clean bill of health — recorded rather than hidden.
Type: MEASURED. Logged and scored on every name; it does not reject the name. Named cause: DBNRR continuing through 110% while gross margin compresses 250bp/yr on Duo Agent inference cost, so revenue converges to the 15.2% RPO growth rate. Going-concern: not argued. See §9 of the research document for the balance-sheet basis. Full reasoning, the mechanism, and why the probabilities are what they are: GTLB_Research.md §9.