Ethos Technologies Inc.

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 9✗ 23▾

  No clean pass — all 15 investors flag at least one profitability criterion

  Positive EPS (10 years)2/3 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)2/3 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$75.0M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)0.63

  ✓Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR43.5%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROEN/A (negative equity)

  ✗Lynch> 15%

  Net Income / Total Assets13.81%

  ✓PiotroskiROA > 0

  ROA Change YoY12.34% -> 13.81% (delta: +1.47%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=7.03%, ROA=13.81%

  ✗PiotroskiCFO/Assets > ROA

  Pre-Tax Income / Revenue19.5%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity

  ✗Dreman> 12%

  Margin of SafetyP/E=27.3x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-114.2% (IV=$15.52 vs Price=$33.26)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency2/2 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue18.8%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trend

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+3.29%; #2277/6340 (top 35.9%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+73.91%; #300/3702 (top 8.1%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts0% pass✗ 13▾

  Split decision: 13 FAIL · 3 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/7)✗BuffettFAIL (1/7)✗LynchFAIL (3/6)•PiotroskiNEUTRAL (F-Score 5)✗DremanFAIL (2/10)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✗AckmanFAIL (2/9)✗TempletonFAIL (1/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
• Valuation models0% pass✗ 7▾

  LIFE overvalued: all 7 models price fair value below $33.26 (median $15.52)

  Buffett fair value$15.18

  ✗Buffett-119.1% margin vs $33.26

  Lynch fair value$30.50

  ✗Lynch-9.0% margin vs $33.26

  Dreman fair value$15.52

  ✗Dreman-114.2% margin vs $33.26

  Munger fair value$10.83

  ✗Munger-207.1% margin vs $33.26

  Pabrai fair value$21.10

  ✗Pabrai-57.6% margin vs $33.26

  Marks fair value$15.52

  ✗Marks-114.2% margin vs $33.26

  Ackman fair value$21.30

  ✗Ackman-56.1% margin vs $33.26
• Valuation8% pass✓ 2✗ 24▾

  11 of 12 flag LIFE's valuation — Graham, Dreman, Munger +8 more

  Price / 3-yr avg EPS32.1x

  ✗Graham<= 15x

  Price-to-Book Ratio

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)0.63

  ✓Lynch< 1.0 (ideally < 0.5)

  Price / EPS27.3x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)53.6x

  ✗Dreman< 8x

  Price / Book Value per ShareN/A (negative BVPS)

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=27.3x, OE Yield=3.9%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=27.3x, FCF Yield=1.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=27.3x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-114.2% (IV=$15.52 vs Price=$33.26)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share55.9x

  ✗Ackman<= 25

  Price vs. Trailing Low298% of trailing low ($11.17)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+3.29%; #2277/6340 (top 35.9%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.2368; #3994/6449 (top 61.9%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS27.3x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.1792; #3884/5247 (top 74.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+1.61%; #2310/4519 (top 51.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+140.84%; #222/6202 (top 3.6%)

  ✓OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage9% pass✓ 1✗ 12▾

  10 of 11 flag LIFE's debt & leverage — Buffett, Lynch, Dreman +7 more

  Debt/Equity & Interest Coverage

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Total Debt / Shareholders' Equity

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDA

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section

  Current Assets / Current Liabilities1.47x

  ✗SchlossCurrent ratio >= 1.50x (app cutoff)
• Growth25% pass✓ 4✗ 8▾

  6 of 8 flag LIFE's growth — Graham, Dreman, Ackman +3 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)0.63

  ✓Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR43.5%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency2/2 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth52.0%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency1/1 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trend

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Efficiency25% pass✓ 1✗ 4▾

  3 of 4 flag LIFE's efficiency — Munger, Akre and Sleep

  Revenue / Total Assets Change YoY0.64x -> 0.75x

  ✓PiotroskiImproved YoY

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag LIFE's cash flow — Piotroski, Dreman, Pabrai +4 more

  Free Cash Flow Proxy$75.0M

  ✓BuffettPositive and growing

  FCF Positive and Growing$34.7M

  ✓LynchPositive and growing

  Operating Cash Flow$36.2M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=7.03%, ROA=13.81%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)53.6x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=27.3x, FCF Yield=1.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive1/2 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap1.8%

  ✗Ackman>= 4%

  Price / FCF per Share55.9x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency1/2 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$34.7M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+1.61%; #2310/4519 (top 51.1%)

  ✗OshaughnessyTop 10% of eligible cross-section