Despite not making money now, Unity (U 0.83%) is building a business for the future, and projections for long-term growth are quite favorable. In this video clip from "The Gaming Show" on Motley Fool Live, recorded on Feb. 7, Fool analyst Sanmeet Deo and contributor Jon Quast discuss the company's current valuation.

Sanmeet Deo: It grows super fast, the past many few quarters here, 40% plus. Saying they'll grow 30% for the next, whatever it is, few years, which like, Jon said, if that grows like that in 10 years, which is very difficult to do but could be 13 times the size of what it is now, their margins are super high. They're almost like in the 80% range. They're not making money now. But I think you said in your overview too, they're looking to get EBITDA positive in 2023.

This is a growth company. This is a company that's investing in the business and building out their business for the future. It's normal for it not to be producing like EBITDA and earnings because they're producing cash flow, it's just that they're using that to build their business. I think that's fine. Knowing that that's how they're investing, that's what they're doing, gives you comfort in investing in a company like this because you know, look, I'm not looking for earnings and cash return to me right now. I'm looking for a company that's building a business for the future and many different verticals.

While the TAM estimate sometimes can be a little, who knows, they might throw numbers how they arrive at that, but it's still not bad to see it growing. That is very cool. I also didn't know what the NFT thing about Unity developers using Unity for NFT games mostly. There's so much optionality in this business, so many avenues that can go down and that stuff really excites me when I'm investing in a growth stock like this.

Jon Quast: Don't you wish that the stock was cheap? It's a dang expensive stock. It really is. But of all the companies that I own and I do own Unity, when I think about the certainty of long-term growth, Unity ranks very high at the top of my conviction on that front. Because it just seems like all the pieces are there just to be a just incredible growth machine, but you are paying for it. I wish it was cheap and you just load up the truck.

Deo: I will say one last thing. This is a classic rule-breaker stock for sure in terms of valuation of something. This may be expensive forever. While I don't love price to sales like their current enterprise value to sales for 2022 is about 21. If they do grow at 30% plus, I'm not going to say that's cheap by any means, but it's reasonable if they can grow that at that clip and that's to be seen.