Revisiting CrowdStrike (CRWD) Valuation After Its Strong Multi‑Year Share Price Run

CrowdStrike Holdings (CRWD) has been on a strong multiyear run, with the stock up about 345% over the past 3 years, even as recent month performance has cooled slightly.

See our latest analysis for CrowdStrike Holdings.

At a share price of $512.03, CrowdStrike’s recent pullback, including a 1 month share price return of minus 4.14%, sits against a much stronger backdrop, with a roughly 47% year to date share price return and a powerful 3 year total shareholder return nearing 345%. This suggests momentum is cooling, but the longer term growth story still looks very much intact.

If CrowdStrike’s run has piqued your interest in the wider space, this could be a good moment to explore other high growth tech and cybersecurity names through high growth tech and AI stocks.

With shares still climbing and analysts penciling in more upside, the key question now is simple: is CrowdStrike still trading below its true potential, or has the market already priced in years of future growth?

Most Popular Narrative Narrative: 4% Undervalued

With CrowdStrike trading at $512.03 against a most popular narrative fair value of about $533, the story here hinges on aggressive, long term growth ambitions.

The strategic focus on Next Gen SIEM, cloud native security, and large scale partnerships, along with CrowdStrike's expansive data capabilities for AI development, positions the company for robust demand growth, which can drive revenue and contract value higher in future periods.

Read the complete narrative.

Want to see what powers that optimism? The narrative builds around rapid revenue expansion, rising margins, and a future profit multiple usually reserved for elite software names.

Result: Fair Value of $533.26 (UNDERVALUED)

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

However, this narrative could unravel if emerging products underperform or if competitive pressures in cloud security lead to higher costs and weaker margins.

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

Another Angle on Valuation

Our DCF model suggests a fair value of about $441.75 per share, which is below today’s $512.03 price and points to CrowdStrike looking overvalued on this view. If cash flows are already priced in, how much upside is really left for new buyers?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own CrowdStrike Holdings Narrative

If you are not fully aligned with these views or simply prefer to dig into the numbers yourself, you can build a custom narrative 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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