Phase Space AI

Ouster

OUST · investment memo

Valuation margin
demonstrated − required CAGR
-15.6%
Required CAGR
47.5%
Demonstrated
31.9%
Terminal margin
15.0%
Exit multiple
18.0x
Company state
C
Terminal margin basis

Central cell of the published 5%/10%/15%/20%/25%/30% grid. The memo bounds the defensible region at 5%-20%: 'any terminal EBIT margin above ~30% requires the gross margin to exceed 45% and operating expenses to fall below 13% of revenue from today's 82%', so the 25% and 30% rows are arithmetic, not forecasts.

Risk & exit

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.

Risk trigger
25% below the memo price
$23.48
Forward E[R]
vs a 0% floor
-25.6%

A daily close below $23.48 triggers a mandatory re-underwrite and freezes further purchases. It is not an automatic sell unless a separate fundamental invalidation condition has been breached.

Thesis-invalidation conditions

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.

Impairment case

Named cause: ASP compression in digital lidar as Chinese volume suppliers price into the industrial and automotive channel, with no contracted backlog to cushion it. Detail and probabilities in OUST_Trade_Construction.md §4. Not a going-concern case — $355m of net cash against a $42m burn.

Documents

OUST Catalyst Calendar OUST Financial Model Notes OUST Research OUST Trade Construction OUST Valuation