I don't think there'll be much disagreement in the CommonStock community about Snowflake $SNOW being a high quality company that's offering something the business world loves. But a lot of people (rightfully so) believe it's over-valued.

Well, it was my week to pick. And I focus on anti-fragility over valuation. Here's why it landed at the top of my list.

For those unfamiliar, Snowflake allows you to take all of the data you've collected, and turn it into actionable insights via queries and processes.

Ever seen a dollar-based net retention that high? Us neither. This is usage-based. Think of it like going to an amusement park with carnival rides. You pay a fee to the ticket booth, and then give the tickets when you ride on the ride.

Same idea here, only you're running queries on your data instead of going on a ride. It's easy to ride a bunch of rides once you see how fun (queries = helpful) they are.

The switching costs are somewhat self-explanatory given the DBNR. The network effect comes from industries where data sharing is important. You can sell and share your data with other companies -- so long as you're all Snowflake customers.

Competition is definitely high. And dilution remains high even a year after the IPO. If the employees keep delivering for customers, it's worth it. But if they don't, it could become a problem. And the valuation...

Here's where we think Snowflake is in its growth cycle

That means P/S and maybe P/GP are the best valuation measures (though I don't personally concern myself too much with this).

As you can see, at 33X sales, it's the cheapest its ever been....and still considered CRAZY expensive.

The company scores very high on both of our frameworks.

But what do YOU think? Let us know in the comments below!