Wait for a dip to buy CrowdStrike stock

We believe there is not much to fear in CRWD stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive. Here is our multi-factor assessment.

But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio and is designed to reduce stock-specific risk while giving upside exposure

Let’s get into details of each of the assessed factors but before that, for quick background: With $108 Bil in market cap, CrowdStrike provides cloud-delivered protection for endpoints, cloud workloads, identity, and data through subscription-based Falcon platform and cloud modules via direct sales and channel partners.

[1] Valuation Looks Very High

This table highlights how CRWD is valued vs broader market. For more details see: CRWD Valuation Ratios

[2] Growth Is Very Strong

• CrowdStrike has seen its top line grow at an average rate of 36.6% over the last 3 years
• Its revenues have grown 26% from $3.3 Bil to $4.1 Bil in the last 12 months
• Also, its quarterly revenues grew 19.8% to $1.1 Bil in the most recent quarter from $921 Mil a year ago.

This table highlights how CRWD is growing vs broader market. For more details see: CRWD Revenue Comparison

[3] Profitability Appears Very Weak

• CRWD last 12 month operating income was $-252 Mil representing operating margin of -6.1%
• With cash flow margin of 33.4%, it generated nearly $1.4 Bil in operating cash flow over this period
• For the same period, CRWD generated nearly $-172 Mil in net income, suggesting net margin of about -4.2%

This table highlights how CRWD profitability vs broader market. For more details see: CRWD Operating Income Comparison

[4] Financial Stability Looks Very Strong

• CRWD Debt was $785 Mil at the end of the most recent quarter, while its current Market Cap is $108 Bil. This implies Debt-to-Equity Ratio of 0.7%
• CRWD Cash (including cash equivalents) makes up $4.6 Bil of $8.7 Bil in total Assets. This yields a Cash-to-Assets Ratio of 52.9%

[4] Downturn Resilience Is Moderate

CRWD saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• CRWD stock fell 67.7% from a high of $293.18 on 9 November 2021 to $94.72 on 6 January 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 22 January 2024
• Since then, the stock increased to a high of $513.51 on 9 July 2025 , and currently trades at $432.12

 
2020 Covid Pandemic

• CRWD stock fell 50.0% from a high of $66.04 on 18 February 2020 to $33.01 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 20 April 2020

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read CRWD Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.