Stock Analysis on Net
Stock Analysis on Net

CrowdStrike Holdings Inc. (NASDAQ:CRWD) 

Present Value of Free Cash Flow to the Firm (FCFF)

Microsoft Excel

In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Free cash flow to the firm (FCFF) is generally described as cash flows after direct costs and before any payments to capital suppliers.

Intrinsic Stock Value (Valuation Summary)

CrowdStrike Holdings Inc., free cash flow to the firm (FCFF) forecast

US$ in thousands, except per share data

Microsoft Excel
Year Value FCFFt or Terminal value (TVt) Calculation Present value at 20.13%
01 FCFF0 1,259,265
1 FCFF1 1,563,640 = 1,259,265 × (1 + 24.17%) 1,301,611
2 FCFF2 1,919,980 = 1,563,640 × (1 + 22.79%) 1,330,410
3 FCFF3 2,330,998 = 1,919,980 × (1 + 21.41%) 1,344,545
4 FCFF4 2,797,797 = 2,330,998 × (1 + 20.03%) 1,343,365
5 FCFF5 3,319,419 = 2,797,797 × (1 + 18.64%) 1,326,736
5 Terminal value (TV5) 264,831,173 = 3,319,419 × (1 + 18.64%) ÷ (20.13% – 18.64%) 105,850,127
Intrinsic value of CrowdStrike Holdings Inc. capital 112,496,793
Less: Senior Notes (fair value) 718,200
Intrinsic value of CrowdStrike Holdings Inc. common stock 111,778,593
 
Intrinsic value of CrowdStrike Holdings Inc. common stock (per share) $440.74
Current share price $393.31

Based on: 10-K (reporting date: 2026-01-31).

1 See details »

Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.

Weighted Average Cost of Capital (WACC)

CrowdStrike Holdings Inc., cost of capital

Microsoft Excel
Value1 Weight Required rate of return2 Calculation
Equity (fair value) 99,748,958 0.99 20.26%
Senior Notes (fair value) 718,200 0.01 2.37% = 3.00% × (1 – 21.00%)

Based on: 10-K (reporting date: 2026-01-31).

1 US$ in thousands

   Equity (fair value) = No. shares of common stock outstanding × Current share price
= 253,614,090 × $393.31
= $99,748,957,737.90

   Senior Notes (fair value). See details »

2 Required rate of return on equity is estimated by using CAPM. See details »

   Required rate of return on debt. See details »

   Required rate of return on debt is after tax.

   Estimated (average) effective income tax rate
= (21.00% + 21.00% + 26.24% + 21.00% + 21.00% + 21.00%) ÷ 6
= 21.00%

WACC = 20.13%

FCFF Growth Rate (g)

FCFF growth rate (g) implied by PRAT model

CrowdStrike Holdings Inc., PRAT model

Microsoft Excel
Average Jan 31, 2026 Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Selected Financial Data (US$ in thousands)
Interest expense 28,021 26,311 25,756 25,319 25,231 1,559
Net income (loss) attributable to CrowdStrike (162,502) (19,271) 89,327 (183,245) (234,802) (92,629)
 
Effective income tax rate (EITR)1 21.00% 21.00% 26.24% 21.00% 21.00% 21.00%
 
Interest expense, after tax2 22,137 20,786 18,998 20,002 19,932 1,232
Interest expense (after tax) and dividends 22,137 20,786 18,998 20,002 19,932 1,232
 
EBIT(1 – EITR)3 (140,365) 1,515 108,325 (163,243) (214,870) (91,397)
 
Long-term debt 745,471 743,983 742,494 741,005 739,517 738,029
Total CrowdStrike Holdings, Inc. stockholders’ equity 4,428,390 3,279,494 2,303,950 1,463,641 1,025,764 870,574
Total capital 5,173,861 4,023,477 3,046,444 2,204,646 1,765,281 1,608,603
Financial Ratios
Retention rate (RR)4 — -12.72 0.82 — — —
Return on invested capital (ROIC)5 -2.71% 0.04% 3.56% -7.40% -12.17% -5.68%
Averages
RR -5.95
ROIC -4.06%
 
FCFF growth rate (g)6 24.17%

Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).

1 See details »

2026 Calculations

2 Interest expense, after tax = Interest expense × (1 – EITR)
= 28,021 × (1 – 21.00%)
= 22,137

3 EBIT(1 – EITR) = Net income (loss) attributable to CrowdStrike + Interest expense, after tax
= -162,502 + 22,137
= -140,365

4 RR = [EBIT(1 – EITR) – Interest expense (after tax) and dividends] ÷ EBIT(1 – EITR)
= [-140,365 – 22,137] ÷ -140,365
= —

5 ROIC = 100 × EBIT(1 – EITR) ÷ Total capital
= 100 × -140,365 ÷ 5,173,861
= -2.71%

6 g = RR × ROIC
= -5.95 × -4.06%
= 24.17%

FCFF growth rate (g) implied by single-stage model

g = 100 × (Total capital, fair value0 × WACC – FCFF0) ÷ (Total capital, fair value0 + FCFF0)
= 100 × (100,467,158 × 20.13% – 1,259,265) ÷ (100,467,158 + 1,259,265)
= 18.64%

where:

Total capital, fair value0 = current fair value of CrowdStrike Holdings Inc. debt and equity (US$ in thousands)
FCFF0 = the last year CrowdStrike Holdings Inc. free cash flow to the firm (US$ in thousands)
WACC = weighted average cost of CrowdStrike Holdings Inc. capital

FCFF growth rate (g) forecast

CrowdStrike Holdings Inc., H-model

Microsoft Excel
Year Value gt
1 g1 24.17%
2 g2 22.79%
3 g3 21.41%
4 g4 20.03%
5 and thereafter g5 18.64%

where:
g1 is implied by PRAT model
g5 is implied by single-stage model
g2, g3 and g4 are calculated using linear interpolation between g1 and g5

Calculations

g2 = g1 + (g5 – g1) × (2 – 1) ÷ (5 – 1)
= 24.17% + (18.64% – 24.17%) × (2 – 1) ÷ (5 – 1)
= 22.79%

g3 = g1 + (g5 – g1) × (3 – 1) ÷ (5 – 1)
= 24.17% + (18.64% – 24.17%) × (3 – 1) ÷ (5 – 1)
= 21.41%

g4 = g1 + (g5 – g1) × (4 – 1) ÷ (5 – 1)
= 24.17% + (18.64% – 24.17%) × (4 – 1) ÷ (5 – 1)
= 20.03%