How to Value Growth Stocks

Many tech names still are unprofitable on that, especially on a gap basis. The idea is that as these tech companies mature, they will be able to achieve maybe 20 or 30% net margins over the long term. Peter Lynch said you should buy these stocks when their PEG ratio is under one times. If we have maybe an octa trading at around six X sales, and if we assume that octa is going to have a long term net margin in the 25%. You could say that it's trading at 24 X long term earnings power. Then you could compare that 24 X earnings ratio with their around 18% or 20% revenue growth rate. It doesn't really make sense