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2025

CrowdStrike DCF Model

Valuation ModelCybersecuritySaaSDCF

Investment Thesis

CrowdStrike is a category leader in cloud-native endpoint security with an expanding platform across identity, cloud workload, SIEM, and managed detection. The model studies whether premium growth and retention can support valuation at a higher discount-rate regime.

The thesis work decomposes revenue into recurring ARR, professional services, and platform expansion so that growth does not rely on a single top-line assumption.

Key Metrics

WACC9.27%
Revenue CAGR20.5%
Terminal Growth3.0%
EBITDA Margin31.0%
MethodDCF

Valuation Output

Scenario and contribution view

Methodology+

The DCF links customer expansion, module adoption, gross retention, operating leverage, and reinvestment needs into a five-year forecast. WACC was built from CAPM inputs and sensitivity-tested across terminal growth and exit assumptions.

Outputs were designed to show the valuation impact of ARR durability and margin expansion rather than treating SaaS growth as a single static driver.