CRWD

CrowdStrike is a security solution suite that has been expanding for over a decade and is one of the most talked-about companies in the cybersecurity industry.

In 2023, CrowdStrike received the highest praise for completeness of vision and ability to execute in Gartner's 2023 Magic Quadrant for Endpoint Protection, and was selected as a leader for the fourth time in a row. Additionally, according to the Q1 2024 Forrester Wave Report, CrowdStrike was selected as a leader in cloud workload security, ranking CrowdStrike highest among all vendors in terms of strategy and receiving the highest score for vision and innovation. Despite the long and growing list of admirers in the industry, the company still needs to continue operating in the future, and it will take time to join the ranks of the millionaires.

In fiscal year 2024 (ending January 31), Cloud Strike generated $3.06 billion in revenue,Sales price ratio (P/S)It's now about 24. Assuming P/S is constant, Cloud Strike must increase revenue to the next level. Approximately $42 billion per year to support a $1 trillion market capitalization. Incidentally, Wall Street predicts earnings of 3.97 billion dollars for 2025 and 5.03 billion dollars for 2026, so it is still a long way before earnings of this scale can be obtained.

If the company can maintain a 33% year-over-year growth rate, Cloud Strike could reach the $1 trillion market capitalization standard by 2033. However, maintaining that level of growth for 10 years would be extremely difficult. If average revenue growth is lowered to a more modest 27%, Cloud Strike could reach $1 trillion in market capitalization by 2035.

There is reason to believe that the need for strong cybersecurity solutions will continue. According to data compiled by McKinsey & Company, damage caused by cyber attacks is expected to reach 10.5 trillion dollars by 2025, and it has increased 300% over the past 10 years. The total target market for security solutions is expected to rapidly increase from $1.5 trillion to $2 trillion over the next 20 years or so, equivalent to about 10 times the current market size.

If Cloud Strike can seize just a fraction of that growing market opportunity, it could soon join the $1 trillion club.