Great insight but I'm interested in the last data graph, why are CRWD, Zscaler having negative CAGR if they’re doing so well, is it overvalued, does that then mean Fortinet and PANW present as better opportunities?
Hi Sam! The negative CAGR you're seeing in the last chart applies to the company's valuation multiple (Forward EV/Sales). It's very common for high-growth companies to start with extremely high multiples that naturally compress as their sales base grows and market sentiment normalizes. For this reason, the CAGR of a valuation metric isn't the most relevant figure. Instead, the real insight comes from observing the overall trend: how valuations have converged and which companies still command a premium, giving clear context on current market expectations.
Great insight but I'm interested in the last data graph, why are CRWD, Zscaler having negative CAGR if they’re doing so well, is it overvalued, does that then mean Fortinet and PANW present as better opportunities?
Hi Sam! The negative CAGR you're seeing in the last chart applies to the company's valuation multiple (Forward EV/Sales). It's very common for high-growth companies to start with extremely high multiples that naturally compress as their sales base grows and market sentiment normalizes. For this reason, the CAGR of a valuation metric isn't the most relevant figure. Instead, the real insight comes from observing the overall trend: how valuations have converged and which companies still command a premium, giving clear context on current market expectations.