The Inflection Economy
Portfolio Managers at Logos LP
CrowdStrike's 45x sales multiple on mid-20% revenue growth only works if multiple expansion continues in perpetuity, which no long holder can count on. x.comÂ
CrowdStrike is among the dumbest things to chase at 32 times revenue, even after WOLF Financial flagged it as the S&P 500's best performer on the day. x.comÂ
CrowdStrike may distinguish itself from an expensive cybersecurity group by showing more breakneck growth at earnings next month. Fortinet's slowing product revenue exposed how much relentless execution investors had priced into the group's extreme multiples, pulling CrowdStrike down in sympathy. CrowdStrike remains in a higher tier than Fortinet, which itself ranks above SentinelOne. x.com x.comÂ
CrowdStrike at 45x revenue is even sillier than its valuation back in 2020, when its fundamentals were far stronger: customer count grew 116%, revenue guidance beat the Street and sales and acquisition costs fell. There was a time to own it; that time is not now. x.comÂ
CrowdStrike's valuation of over 50x revenue is completely indefensible. x.comÂ
CrowdStrike stands out over Palo Alto Networks for 2026 because it has higher sales and EPS growth and stronger projections, while the two have similar charts. x.comÂ
CrowdStrike's valuation looks detached from its fundamentals. It is still unprofitable on a GAAP basis, trades at 116x forward earnings, and is growing more slowly than it was in 2021. x.comÂ
CrowdStrike's growth is too slow to justify its valuation. Its forward P/E has climbed to about 190, while stock-based compensation exceeds operating earnings, so reported free cash flow margins do not show what the business actually earns. x.com x.com x.com x.comÂ
CrowdStrike's re-rating reflects a massively expanded market in which security seats are defined by AI agents rather than employees. The Mythos model announcement and a frontier model going rogue with cyber attacks changed the fundamentals since the stock was at $100. It is very expensive versus its history and peers, and @InvestingVisual notes it trades at 109x forward free cash flow, but that does not mean nothing has changed. x.comÂ
CrowdStrike is a hard pass at its current valuation, priced for perfection and then some for just 26% growth on an already large revenue base. It trades at 35x forward revenue, 102x forward free cash flow, 113x forward EV/EBITDA and 166x forward earnings. x.comÂ