Are Crowdstrike’s shares a purchase now?

Crowdstrike Holdings (Nasdaq: CRWD) The shares have done a remarkable recovery in the market in the last six months after a defective software update on July 19 of last year that caused a global interruption of IT and sent its chopped actions.

The interruption reached millions of computers worldwide, affecting airlines, hospitals, stores and other companies. It is not surprising that Crowdstrike’s actions suffered a crisis of trustsince investors were concerned about the capacity of the cybersecurity specialist to attract new customers following this setback. In addition, Crowdstrike was involved in legal fights after the interruption.

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The impressive rally in Crowdstrike’s shares in the last six months suggests that the company has recovered the confidence of investors. However, will it be a good idea to buy it after this increase? Let’s find out.

The recent Crowdstrike results indicate that the interruption effect still feels

Crowdstrike Management decided to compensate customers after July 19. The client’s commitment package announced by the company included the extension of subscription contracts, flexible payment terms and other unique incentives. Crowdstrike also witnessed an extension year after year in its sales cycles with business customers.

The company Annual recurring income (RR) It was affected by a sum of $ 25 million in the third quarter of fiscal year 2025 (which ended on October 31, 2024) due to compensation packages. Crowdstrike anticipates a greater effect of $ 30 million in its new net income and subscription in the fourth fiscal quarter.

Crowdstrike Management points out that the company “has already worked through a significant number of compensation packages, and the rest will be completed in the next quarters.” Compensation packages also have a negative effect on the final result of Crowdstrike.

CRWD EPS diluted (quarterly) data by Ycharts

The company has guided for adjusted profits of fiscal year 2025 of $ 3.75 per share at the midpoint, which would be a 21% leap compared to the previous year. That points towards a significant deceleration in the growth of fiscal year 2024, when their profits doubled. Consensus estimates project an additional deceleration in the growth of profits next year, while the forecast for the subsequent year has also been reduced.

CRWD EPS estimates for next fiscal year data by Ycharts

All this indicates that Crowdstrike could continue to feel the subsequent effects of last year’s incident on the foreseeable future. That is exactly the reason why buying the action after its recent increase may not seem like a good idea, especially taking into account the valuation.

The action is richly valued at this time

Crowdstrike is quoted at a whopping 801 times the profits and 94 times Go ahead. The multiple of sales of 27 is not cheap either. Buy Crowdstrike in such expensive multiples, especially when your final result feels the tight of compensation packages, it will not be the most intelligent, since the action seems to have advanced itself.

Even its average price of $ 385 of 12 months is lower than the current price of the shares. However, if the Crowdstrike stock is subjected to correction and is available in a cheaper assessment, it may be worth taking a look once again.

This is because Crowdstrike sees its total directable market that reaches $ 250 billion in 2029, thanks to the growing adoption of Artificial Intelligence (AI) Tools within the cybersecurity space. The company has implemented a series of AI -centered offers for clients that seem to be winning traction, according to management comments in November 2024 Gain Telephone Conference.

In addition, the adoption rates of Crowdstrike cybersecurity modules have improved. It is worth noting that 66% of their clients were using five or more modules at the end of the third quarter of fiscal year 2025, an increase of three percentage points year after year. Crowdstrike’s ability to boost an improvement in the adoption of its cybersecurity offers despite last year’s incident suggests that the challenges is successfully sailing and is being positioned for long -term growth.

The company expects to increase its Rard to $ 10 billion in the next six years, which would be an increase of 2.5x over its RAC in the last informed quarter. Therefore, although Crowdstrike is not worth buying now due to its expensive assessment and slow growth of earnings, investors can still consider adding this cybersecurity action to their observation lists.

Any acute correction in the Crowdstrike stock that carries its assessment to more reasonable levels, or a strong enough improvement in the growth of its profits that could help justify its multiples, could represent a signal to buy in the future.

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Hard Chauhan It has no position in any of the aforementioned actions. The Motley Fool has positions and recommends Crowdstrike. The fool has a Disclosure policy.