CrowdStrike’s 43.54x Sales Multiple Raises Valuation Concerns
Yahoo Finance’s Brian Sozzi points to steep valuation multiples as CrowdStrike shares rise and investors anticipate stronger demand.
Key takeaways
- CrowdStrike traded at 43.54 times forward sales, according to Sozzi’s analysis.
- Its shares had risen 127% this year, while its forward P/E stood at 209x.
- Yahoo Finance’s most optimistic analyst estimates point to 53% earnings growth next year.
CrowdStrike shares traded at $265.44, down 4.81% since the previous close, as of 20:00 UTC on Oct. 7. Yahoo Finance Executive Editor Brian Sozzi questioned whether the stock’s valuation is justified after a 127% rise this year.
Sozzi said CrowdStrike trades at 43.54 times forward sales, above its peak forward sales multiple in 2021. Its forward price-to-earnings ratio is 209, compared with about 20 for the S&P 500, according to the article.
Yahoo Finance’s most optimistic analyst estimates point to CrowdStrike earnings increasing 53% next year. Sozzi said investors are expecting business to pick up as companies seek to address breaches involving AI agents.
The article also compared CrowdStrike’s valuation with cybersecurity peers. It cited forward P/E multiples of 54 for Okta, 94 for Palo Alto Networks, 44 for Zscaler and 67 for SailPoint.
This article was produced with the help of AI technology. Source: Yahoo Finance
