Q: Can you compare Crowdstrike’s valuation to Topicus for me? I know they are in different sectors but I am thinking about deploying long term money into one or the other.
5i Research Answer:
On a pure valuation basis alone, CRWD trades at a 70.1X forward P/E, whereas TOI is at 30.7X. CRWD trades at 16.1X forward sales, whereas TOI is at 4.0X. CRWD trades at a 65X price-to-free-cash flow and TOI is at 23.7X.
While they are in different sectors and are different sizes (CRWD is roughly 10X the size of TOI), we also don't believe that valuation alone is a good reason to buy or sell a stock, and we have seen many stocks go up even with high valuations, and for those valuations to compress later on, as its fundamentals grow faster than share price.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in CRWD.