CrowdStrike (CRWD) Valuation in Focus After Raised Outlook and Strong Revenue Growth

If you’ve had your eye on CrowdStrike Holdings (CRWD) lately, you’ve probably noticed the recent buzz around its stock. The excitement started after the company reported earnings that beat expectations and raised its revenue guidance for both the third quarter and the full year. This upbeat tone is reinforced by a surge in demand for its Falcon Flex subscription, as well as deepening partnerships with giants like NVIDIA and Amazon Business Prime. For investors weighing their next move, this latest update puts CrowdStrike firmly back into focus.

The upbeat news has added fuel to a rally that has already been building this year. Shares of CrowdStrike are up nearly 21% year to date, handily outpacing competitors, and the momentum seems to reflect confidence in the company’s rapid customer growth and consistent expansion of its core business. Even over the longer term, CrowdStrike’s returns have impressed, with three- and five-year gains well above market averages. Continued strategic initiatives, including an acquisition to boost data processing power, contribute to the narrative that this is a company not just growing fast but also aiming to widen its lead.

The real question for investors now is whether there is still room for upside, or if the market has already priced in all that future growth.

Most Popular Narrative: 0.7% Undervalued

According to Tokyo, the current valuation of CrowdStrike is considered slightly below its fair value. This reflects optimism in the company's flexible business model and ambitious growth targets.

The falcon suit already covers 20 different modules. CRWD is also very active in acquisitions, so the suit will be extended continuously. This is ideal for customers because all modules are interconnected and silos are eliminated. In my opinion, they have the perfect product, similar to Netflix.

Think you’ve seen everything about CrowdStrike? This narrative claims the company could outpace expectations thanks to a unique modular platform, fast-growing subscription base, and continuous expansion. Wonder what bold growth assumptions are fueling this call? Discover the secrets behind Tokyo’s fair value calculation and see which driver stands out most.

Result: Fair Value of $431.24 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rapid growth does not guarantee future outperformance. Slower-than-expected customer adoption or security incidents could quickly shift sentiment on CrowdStrike's prospects.

Find out about the key risks to this CrowdStrike Holdings narrative.

Another View: Market Comps Tell a Different Story

Yet, if we check how CrowdStrike stacks up against others in its industry using a common valuation ratio, a different picture appears. By this measure, the stock actually looks expensive. Which method will prove right in the end?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding CrowdStrike Holdings to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own CrowdStrike Holdings Narrative

If you see things differently or want to check the numbers for yourself, you can shape your own CrowdStrike story in just a few minutes. Do it your way.

A great starting point for your CrowdStrike Holdings research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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