Bull Case For Lemonade
I think it is perfect time to take a position in Lemonade.
The PS ratio of LMND is 7-8 if it is calculated using Inforce Premium. Obviously, this is against the accounting principles and gross premium is used for calculation of the PS ratio which comes at 24. But one needs to understand that Lemonade cannot grow without reinsurance and reinsurance percentage will go down as Lemonade grow. Lemonade needs reinsurance to grow.
PS ratio of 7-8 might look higher if compared against big insurance companies which usually have a PS ratio of 1-2 but LMND is growing crazily as compared to big insurance companies which are stagnant.