Credit markets are slightly overstating CRWD’s credit risk with a YTW of 5.014% relative to an Intrinsic YTW of 4.288% and an Intrinsic CDS of 7bps. Meanwhile, Moody’s is accurately stating CRWD’s fundamental credit risk with its Baa2 credit rating one notch below Valens’ IG4+ (Baa1) credit rating.

Incentives Dictate Behavior™ analysis highlights mostly mixed signals for credit holders. That said, as positives, all members of management are material owners of CRWD equity relative to their annual compensation, indicating they may be aligned with shareholders to pursue long-term value creation for the company and all management members have low change-in-control compensation relative to their annual compensation indicates they may not be incentivized to pursue a takeover or accept a sale of the company, decreasing event risk for creditors.