a close up of a sign: A sign with the Crowdstrike (CRWD) company logoCrowdstrike (NASDAQ:CRWD) is an extremely profitable SaaS (Software as a Service) company. Its free cash flow (FCF) and its stellar FCF margins will push CRWD stock much higher. My best estimate is that the stock is worth as much as 39% more than the Sept. 8 close of $265.23.

This may be hard for some to accept, especially since CRWD stock has already risen some 25% this year, up from nearly $212 at the end of December 2020. In fact, from its trough close on Mar. 29 at $173.85, this stock has risen a little more than 52% today.

But Crowdstrike has made excellent progress in both its first and second quarter this year, particularly with its free cash flow. So, there is good reason to believe CRWD could reach this higher price target. Here’s what you should know.

On Aug. 31, Crowdstrike reported that its annual recurring revenue (ARR) for Q2 2021 rose 70% year-over-year (YOY) to $1.34 billion. This amounted to an ARR increase of $151 million from a record 1,660 new subscription customers for the company’s online cloud security software.

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