CrowdStrike stock is flying — but the valuation math is sending warning signs

It's not difficult to understand why CrowdStrike (CRWD) stock has experienced a meteoric move. But it is becoming difficult to justify the stock's valuations. Shares of the cybersecurity darling now trade at 43.54x forward price-to-sales (P/S). Not only is this enormous relative to the broader stock market and other cybersecurity players, but it's higher than CrowdStrike's peak forward sales multiple at its 2021 top (see chart below). What's more, the stock trades at a forward price-to-earnings (P/E) multiple of 209x as shares have exploded 127% this year, with investors expecting a pickup in business to combat AI agent breaches.