(DDOG) Datadog - Overview
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 75.549m USD | Total Return: 94.2% in 12m
Avg Turnover: 973M
EPS Trend: 82.5%
Qual. Beats: 9
Rev. Trend: 100.0%
Qual. Beats: 17
Warnings
P/E ratio 558.5
Tailwinds
Leader, Pead, Tailwind, Confidence
Datadog, Inc. provides a comprehensive observability and security platform designed to monitor cloud-scale applications. Its product suite integrates infrastructure monitoring, application performance monitoring (APM), and log management into a unified interface to improve operational efficiency and uptime.
The company operates within the Application Software sub-industry, utilizing a Software-as-a-Service (SaaS) business model that generates recurring revenue through tiered subscription plans. As enterprises migrate to multi-cloud and hybrid environments, the demand for unified telemetry data across disparate systems has become a critical driver for the observability sector.
Recent expansions in the Datadog portfolio include specialized tools for LLM observability and cloud security, reflecting the industry-wide shift toward integrating artificial intelligence and DevSecOps workflows. For a deeper analysis of these market trends, you may want to explore the data available on ValueRay.
Headquartered in New York, Datadog serves a global client base, offering automated incident response and workflow tools that assist engineers in identifying and resolving system bottlenecks. The platforms ability to ingest and analyze massive volumes of real-time data allows organizations to maintain visibility over complex, distributed digital architectures.
- Cloud migration velocity and enterprise digital transformation drive platform consumption revenue
- Multi-product adoption and cross-selling increase net revenue retention across enterprise customers
- Expansion of AI observability and LLM monitoring tools captures emerging software demand
- High infrastructure spending sensitivity to macroeconomic conditions impacts short-term growth rates
- Competitive pricing pressure in the observability market affects long-term operating margins
| Net Income: 135.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 0.66 > 1.0 |
| NWC/Revenue: 108.1% < 20% (prev 113.7%; Δ -5.56% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.11b > Net Income 135.7m |
| Net Debt (-3.17b) to EBITDA (228.6m): -13.88 < 3 |
| Current Ratio: 3.40 > 1.5 & < 3 |
| Outstanding Shares: last quarter (364.7m) vs 12m ago 0.46% < -2% |
| Gross Margin: 79.89% > 18% (prev 0.80%; Δ 7.91k% > 0.5%) |
| Asset Turnover: 56.66% > 50% (prev 47.16%; Δ 9.50% > 0%) |
| Interest Coverage Ratio: 7.13 > 6 (EBITDA TTM 228.6m / Interest Expense TTM 23.3m) |
| A: 0.57 (Total Current Assets 5.63b - Total Current Liabilities 1.66b) / Total Assets 6.95b |
| B: 0.03 (Retained Earnings 190.4m / Total Assets 6.95b) |
| C: 0.03 (EBIT TTM 166.1m / Avg Total Assets 6.48b) |
| D: 0.06 (Book Value of Equity 186.9m / Total Liabilities 2.96b) |
| Altman-Z'' = 4.07 = AA |
| DSRI: 1.07 (Receivables 680.4m/490.2m, Revenue 3.67b/2.83b) |
| GMI: 1.00 (GM 79.89% / 80.11%) |
| AQI: 1.32 (AQ_t 0.11 / AQ_t-1 0.08) |
| SGI: 1.30 (Revenue 3.67b / 2.83b) |
| TATA: -0.14 (NI 135.7m - CFO 1.11b) / TA 6.95b) |
| Beneish M = -2.71 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 218.04 with a total of 4,109,150 shares traded.
Over the past week, the price has changed by +6.89%,
over one month by +73.88%,
over three months by +116.65% and
over the past year by +94.23%.
Datadog has received a consensus analysts rating of 4.37. Therefore, it is recommended to buy DDOG.
- StrongBuy: 26
- Buy: 11
- Hold: 9
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 223 | 2.3% |
P/E Forward = 87.7193
P/S = 20.5742
P/B = 18.943
P/EG = 1.3276
Revenue TTM = 3.67b USD
EBIT TTM = 166.1m USD
EBITDA TTM = 228.6m USD
Long Term Debt = 984.5m USD (from longTermDebt, last quarter)
Short Term Debt = 41.4m USD (from shortTermDebt, last quarter)
Debt = 1.59b USD (from shortLongTermDebtTotal, last quarter) + Leases 300.6m
Net Debt = -3.17b USD (calculated: Debt 1.59b - CCE 4.76b)
Enterprise Value = 72.4b USD (75.5b + Debt 1.59b - CCE 4.76b)
Interest Coverage Ratio = 7.13 (Ebit TTM 166.1m / Interest Expense TTM 23.3m)
EV/FCF = 67.05x (Enterprise Value 72.4b / FCF TTM 1.08b)
FCF Yield = 1.49% (FCF TTM 1.08b / Enterprise Value 72.4b)
FCF Margin = 29.40% (FCF TTM 1.08b / Revenue TTM 3.67b)
Net Margin = 3.69% (Net Income TTM 135.7m / Revenue TTM 3.67b)
Gross Margin = 79.89% ((Revenue TTM 3.67b - Cost of Revenue TTM 738.6m) / Revenue TTM)
Gross Margin QoQ = 79.21% (prev 80.39%)
Tobins Q-Ratio = 10.41 (Enterprise Value 72.4b / Total Assets 6.95b)
Interest Expense / Debt = 1.47% (Interest Expense 23.3m / Debt 1.59b)
Taxrate = 10.79% (6.36m / 58.9m)
NOPAT = 148.2m (EBIT 166.1m * (1 - 10.79%))
Current Ratio = 3.40 (Total Current Assets 5.63b / Total Current Liabilities 1.66b)
Debt / Equity = 0.40 (Debt 1.59b / totalStockholderEquity, last quarter 3.99b)
Debt / EBITDA = -13.88 (Net Debt -3.17b / EBITDA 228.6m)
Debt / FCF = -2.94 (Net Debt -3.17b / FCF TTM 1.08b)
Total Stockholder Equity = 3.59b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.09% (Net Income 135.7m / Total Assets 6.95b)
RoE = 3.78% (Net Income TTM 135.7m / Total Stockholder Equity 3.59b)
RoCE = 3.63% (EBIT 166.1m / Capital Employed (Equity 3.59b + L.T.Debt 984.5m))
RoIC = 2.78% (NOPAT 148.2m / Invested Capital 5.34b)
WACC = 10.99% (E(75.5b)/V(77.1b) * Re(11.19%) + D(1.59b)/V(77.1b) * Rd(1.47%) * (1-Tc(0.11)))
Discount Rate = 11.19% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 1.48%
[DCF] Terminal Value 69.93% ; FCFF base≈1.01b ; Y1≈1.15b ; Y5≈1.70b
[DCF] Fair Price = 62.15 (EV 17.4b - Net Debt -3.17b = Equity 20.6b / Shares 330.8m; r=10.99% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 82.53 | EPS CAGR: 16.66% | SUE: 4.0 | # QB: 9
Revenue Correlation: 99.97 | Revenue CAGR: 26.78% | SUE: 4.0 | # QB: 17
EPS current Quarter (2026-06-30): EPS=0.58 | Chg30d=+16.52% | Revisions=+90% | Analysts=40
EPS next Quarter (2026-09-30): EPS=0.61 | Chg30d=+10.43% | Revisions=+90% | Analysts=38
EPS current Year (2026-12-31): EPS=2.42 | Chg30d=+12.49% | Revisions=+91% | GrowthEPS=+18.1% | GrowthRev=+26.7%
EPS next Year (2027-12-31): EPS=2.84 | Chg30d=+7.81% | Revisions=+87% | GrowthEPS=+17.5% | GrowthRev=+20.6%
[Analyst] Revisions Ratio: +91%