You mention CRWD was at twice ZS’s multiple before the fall. Pretty much. And I was pounding the table that CRWD was a sell, and not because I saw a problem coming, but because there was not much of anywhere to go BUT down. Here are some thoughts about how to look at valuation: My take on Valuation
It might be a little undervalued if growth holds up. But I guess even with a SaaS company, a normal growth deceleration starting from 30% isn’t nearly exciting as when you get to start from 70% or even 50%.
I’m not saying 30% growth isn’t great – I’m just I don’t want to “load up” on a 30% grower if the price is even in the range of reasonable. I think unless I strongly feel it’s mispriced, a 5% position is plenty. I would only want to slightly concentrate into a 30% grower as the price falls…and only to a point…unlikely I will make a 30% grower a double digit position…unless I think it’s gonna accelerate or something.
Bear