CrowdStrike

Methodology

CrowdStrike's cloud-native cybersecurity platform generates rapidly growing earnings with high predictability from subscription revenue and expanding margins. The land-and-expand model with multiple modules drives consistent upselling and retention. This calculation works well given clear visibility into strong annual earnings growth as the company scales.

Methodology

CrowdStrike typically commands premium PEG ratios reflecting its endpoint security leadership and strong competitive moats from data network effects. The platform's AI-driven threat detection creates high switching costs. PEG appears expensive but reflects sustainable growth from cybersecurity spending increases and market share gains.

Methodology

CrowdStrike doesn't pay dividends and reinvests all cash flow into R&D and go-to-market expansion to capture growing enterprise security budgets. Management focuses on maximizing long-term market share over near-term cash returns. Total return depends entirely on earnings compounding as the platform becomes mission-critical security infrastructure.