Company had about 40% growth last year and that growth is actually accelerating with Q4 Holiday season sales alone increasing 75% YOY and Q3 sales increasing 46% YOY. Q1 of this year will be a big indicator for me.
But lets say its current sales of $1.4B increase by an average of 15% over the next 5 years...that would lead to GPRO doubling its revenue. I got that using the following VERY modest growth rates: 30% for this year, then 20%, then 10% then 5% twice.
Their profit margin is already decent at about 9.3% as well. A good improvement from 6% in both 2013 and 2012. During Q4 however the profit margin was 20% (was only 12% the year before) which gives an idea of how much better its operational efficiency is getting.
If they can hit $2.7 billion revenue by 2020, with 20% profit margin (modest hopes in my opinion) ...with a 20 P/E ratio (modest again for a tech company youre looking at $540M and a market valuation of $10.8B which is almost double what it is now.
I'm gonna look into what their R&D and the exec that left is all about and if I like I'm taking the plunge fukk it.
edit: with that said...there will probably be some sort of crash in the next 5 years to ruin all this