Datadog, Inc. (DDOG) stock analysis
Close on Nov 11, 2026Market cap $66.21BP/E 256.1Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed13 of 30 checks passed
Datadog passes 13 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 3/6
- Past performance
- 3/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
No debt
Datadog has no borrowings on its latest balance sheet.
Revenue growing 10%+ a year
Revenue grew 26.9% a year over the last three fiscal years.
Interest well covered
Operating income covers interest expense 7.9 times.
Debt covered by cash flow
There is no debt to cover.
What to watch
Margin of safety under 20%
The price is 603% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $184.38 is above our fair value estimate of $26.22.
Return on equity under 15%
Return on equity was 6.4% over the last twelve months and averaged 1.6% over five years; we look for 15% on both.
P/E above the industry
Datadog's P/E of 256.1 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
Valuation1/6
P/E below its 5-year median
Datadog's P/E of 256.1 is below its own 5-year median of 359.2.
P/E above the industry
Datadog's P/E of 256.1 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
Datadog's price-to-book of 14.04 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $184.38 is above our fair value estimate of $26.22.
Margin of safety under 20%
The price is 603% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 26.9% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 33.2% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance raised
Datadog raised its Full Year 2026 Revenue outlook on Aug 6, 2026.
Gross margin slipping
Gross margin was 79.6% over the last twelve months, against 79.9% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 6.4% over the last twelve months and averaged 1.6% over five years; we look for 15% on both.
Return on invested capital
Needs operating income and invested capital.
Return on equity above the industry
Datadog's return on equity of 6.4% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 6.1% over the last twelve months, against a 5-year average of 1.5%.
Net margin above the industry
Datadog's net margin of 6.1% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health6/6
No debt
Datadog has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 7.9 times.
Short-term assets cover short-term debts
Current assets are 3.51 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 14.05; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Datadog has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$26.22
The share price is 603% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 45.0× | 359.2× | 27.6× | $32.40 | 44% |
| EV/EBITDA | 18.8× | – | 18.8× | $23.16 | 39% |
| P/Bleft out, too far from the others | 11.6× | 19.8× | 3.3× | $152.39 | – |
| Earnings power | 13.6% cost of equity | – | – | $16.89 | 17% |
| Fair value | $26.22 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 359
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $897.21M
- Value traded per 1% price move
- $292.15M
Downside
High risk
- Typical loss in a bad month
- 30.3%
- Volatility (annualized)
- 70%
- Sharpe ratio, 1 year
- -0.17
- Beta to the S&P 500 (5Y)
- 1.74
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2016 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +27.7% | +26.9% | +41.5% | – | |
| Gross profit | +26.3% | +27.3% | +42.1% | – | |
| Net income | -41.4% | – | – | – | |
| EPS, diluted | -40.4% | – | – | – | |
| Free cash flow | +19.7% | +37.7% | +57.4% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | -2.8% | 3.3% | |
| Return on assets | – | -1.7% | 1.7% | |
| Current ratio | – | 5.77 | 3.38 | |
| Interest coverage | – | -0.5× | -4.0× | |
| Capex to revenue | – | 0.9% | 1.4% | |
| Diluted shares | – | 300M | 363M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Datadog generated $3.29B from operations and spent $157.10M on capital expenditure, dividends and share buybacks. 100% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 3.1% | 0.55× | 1.93× | 3.3% |
| FY2024 | 6.8% | 0.55× | 2.05× | 7.8% |
| FY2023 | 2.3% | 0.61× | 2.02× | 2.8% |
| FY2022 | -3.0% | 0.62× | 2.20× | -4.1% |
| FY2021 | -2.0% | 0.48× | 2.14× | -2.1% |
| FY2020 | -4.1% | 0.41× | 1.68× | -2.8% |
| FY2019 | -4.6% | 0.60× | 1.72× | -4.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$107.74M
- Cash generatingOperating cash flow above zero$1.05B
- Return on assets improvedROA up on the prior year4.7% → 1.9%
- Earnings backed by cashOperating cash flow above net income$1.05B vs $107.74M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose2.64 → 3.38
- No dilutionShare count did not rise359M → 363M
- Gross margin improvedGross margin up on the prior year80.79% → 79.96%
- More efficientAsset turnover rose0.68 → 0.59
See a number that looks wrong?