Phase Space AI

CrowdStrike

CRWD · investment memo

Valuation margin
demonstrated − required CAGR
-19.2%
Required CAGR
44.8%
Demonstrated
25.6%
Terminal margin
Exit multiple
8.7x
Company state
C
Terminal margin basis

NOT UNDERWRITTEN, deliberately, so null is the correct record rather than a gap. The memo's primary instrument is an EV/SALES reverse DCF, for which valuation.md does not require a terminal operating margin ('Terminal operating margin is not required on a sales basis'). The EBIT-basis exit multiple is separately declared UNIDENTIFIED. Section 3 Sensitivity 2 runs the terminal GAAP operating margin across 10.0 / 15.0 / 20.0 / 24.7 (the guided non-GAAP) / 30.0 / 35.0% and returns FAIL at every one, margins -73.9pp to -29.7pp - the point being that the verdict does not depend on the basis. No point estimate is committed anywhere in the folder and none is invented here.

Risk & exit

Four distinct questions, one field each. A price is not a thesis: the trigger below forces a re-underwrite and freezes further purchases — it is never an automatic sell.

Risk trigger
17% below the memo price
$148.51

A daily close below $148.51 triggers a mandatory re-underwrite and freezes further purchases. It is not an automatic sell unless a separate fundamental invalidation condition has been breached.

Thesis-invalidation conditions

Not stated. This name has no falsifiable invalidation conditions on file, so it cannot be risk-monitored. That is a gap in the research, not a clean bill of health — recorded rather than hidden.

Impairment case

Type: MEASURED. Logged, scored, and it does not reject the name — the Valuation Criteria already does. Scenario — a second platform incident, or Microsoft Defender bundling, compresses net retention below 110% while SBC at 22.8% of revenue cannot be cut. Probability 30%. Named cause and mechanism, with precedent. The July 19, 2024 incident is not a hypothetical — it happened, and its effect is measurable in CRWD's own disclosure: dollar-based net retention fell from 119% to 112% and revenue growth troughed at 19.8%. The 10-Q still discusses it 55 times, two years later, and the FY2025 10-K sta

Documents

CRWD Catalyst Calendar CRWD Financial Model Notes CRWD Research CRWD Trade Construction CRWD Valuation