No. of Recommendations: 17
Specifically, what companies did you consider as similar companies to ZS, CRWD, and OKTA and what were the PS of all.

Jeb,

Just total back of napkin stuff. For example, if the situation is:

Company PS RevGrowthRate
ESTC 22 60%
OKTA 25 50%
ZS 28 55%
CRWD 42 95%

...then I probably rationalize that these are in "within ranges" relative to their growth that nothing is too out of whack. Obviously ESTC looks cheap in this example, but that's about all I can glean.

If the situation is:

Company PS RevGrowthRate
ESTC 22 60%
OKTA 25 50%
ZS 42 55%
CRWD 65 95%

...then I would probably be trimming ZS and CRWD. It's hard to make the call with CRWD because it's growing so fast, but ZS looks like a clear outlier. In this example I either have to convince myself that ZS is roughly twice as attractive as ESTC and OKTA, or I should trim or sell ZS.

Bear
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