DDOG

Datadog, Inc.

Fundamental data last updated:May 15, 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. provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. The company's SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, and security monitoring to provide real-time observability of its customers technology stack. Its platform also provides user experience monitoring, network performance monitoring, cloud security, developer-focused observability, and incident management, as well as a range of shared features, such as dashboards, analytics, collaboration tools, and alerting capabilities. The company was incorporated in 2010 and is headquartered in New York, New York.

 


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VALUATION

P/E

534.60

Market Cap ($M USD)

$73.08B

Forward P/E

43.78

PEG

0.04

PRICE TO SALES

19.90

PRICE TO BOOK

18.19

EV / EBITDA

426.23

5-Year Average P/E

Free Cash Flow Yield

1.48%

DCF Value

$19.73

Graham Number

$9.88

Price to FCF

67.70

EV to FCF

68.50

Earnings Yield

0.19%

FCF Yield

1.48%

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

15.87

Return on Invested Capital (ROIC)

-0.46%

Current Ratio

3.40

Quick Ratio

3.40

Net Debt to EBITDA

4.95

Interest Coverage

-1.44

Gross Profit margin

79.88%

FCF PER SHARE

$3.06

REVENUE PER SHARE

$10.39

Analyze DDOG on TradingView

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

$203.96

Institutional Ownership %

1-Year Beta

1.30

Insider Buying % (6 Mo)

Distance to 52-Week High

0.06%

Distance to 52-Week Low

52.26%

EARNINGS SURPRISE %

18.11%

50-DAY SMA

$132.67

200-DAY SMA

$139.39

⚠️ 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.