DDOG

Datadog, Inc.

Fundamental data last updated:July 16, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/06/2026

Business Summary

Datadog, Inc. offers a comprehensive cloud-based monitoring and analytics solution, serving the needs of developers, IT operations personnel, and business stakeholders across North America and internationally. This Software-as-a-Service (SaaS) offering skillfully combines and automates several crucial functions, including infrastructure oversight, application performance tracking, log management, and security surveillance, all designed to deliver live, end-to-end visibility into its customers' technology environments. Additionally, the platform extends its capabilities to include user experience monitoring, network performance analytics, robust cloud security measures, specialized observability tools for developers, and efficient incident response management. It also comes equipped with standard features like configurable dashboards, sophisticated analytical tools, collaborative features, and proactive alert systems. The company was founded in 2010 and is based in New York, New York.

 


VALUATION

P/E

664.94

Market Cap ($M USD)

$90.90B

Forward P/E

54.45

PEG

0.05

PRICE TO SALES

24.76

PRICE TO BOOK

22.62

EV / EBITDA

401.46

5-Year Average P/E

Free Cash Flow Yield

1.19%

DCF Value

$11.45

Graham Number

$9.88

Price to FCF

84.21

EV to FCF

85.01

Earnings Yield

0.15%

FCF Yield

1.19%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.38

Next Year EPS Growth Estimate

$4.69

Next Year Revenue Growth Estimate

$828.73B

Return on Equity (ROE)

3.78%

FREE CASH FLOW

Operating Margin

-0.67%

Debt-to-Equity

0.41

Piotroski F-Score

6

Altman Z-Score

20.09

Return on Invested Capital (ROIC)

-0.46%

Current Ratio

3.40

Quick Ratio

3.40

Net Debt to EBITDA

3.76

Interest Coverage

-0.92

Gross Profit margin

79.89%

FCF PER SHARE

$3.06

REVENUE PER SHARE

$10.39

Gainseekers Quantitative Analysis

Summary

Datadog, Inc. is trading at a valuation that screams “priced for perfection.” With a Price/Earnings ratio over 521 and a Forward P/E of 42.68, the market is betting heavily on future growth. However, the DCF Value suggests a stark overvaluation, and the Graham Number is a distant memory. Despite this, the Altman Z-score of 15.71 indicates robust financial health, suggesting bankruptcy is not a concern. The Earnings Yield is a paltry 0.19%, highlighting the premium investors are willing to pay for anticipated growth.

AI Exposure / Tech Reliance

As a player in the Software - Application industry, Datadog is well-positioned to capitalize on the AI revolution. Its technology stack is inherently adaptable, allowing seamless integration with AI-driven analytics. This adaptability ensures it remains relevant as tech landscapes evolve.

The Bull Case

For the GARP investor, Datadog offers a compelling growth narrative. The Forward PEG ratio of 0.038 is a beacon of undervaluation relative to growth expectations. A Piotroski F-Score of 6 indicates solid financial health, while a Gross Profit Margin of nearly 80% underscores its pricing power. Despite a negative ROIC, the company's ability to generate free cash flow, albeit modestly, suggests efficient capital deployment.

The Bear Case

Yet, the stock is not without its pitfalls. The Price/Sales ratio of 19.40 and Price/Book of 17.73 highlight a valuation stretched to its limits. With an Operating Margin of -0.67% and a Net Debt to EBITDA ratio nearing 5, profitability and leverage are concerning. Trading near its 52-week high, the stock appears technically overextended, posing a risk of correction.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$232.79

Institutional Ownership %

1-Year Beta

1.54

Insider Buying % (6 Mo)

Distance to 52-Week High

9.14%

Distance to 52-Week Low

61.62%

EARNINGS SURPRISE %

18.11%

50-DAY SMA

$207.94

200-DAY SMA

$156.08

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.