DDOG Stock Analysis: Datadog | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 99.543m USD | 12M Return: 78.7% | US23804L1035 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 728M
EPS Trend: 48.6%
Qual. Beats: 4
Rev. Trend: 99.9%
Qual. Beats: 16
Warnings
Tailwinds
Seasonality 7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Datadog, Inc. (NASDAQ: DDOG) is a New York-based software company that provides an observability and security platform for cloud-based applications, serving customers in the United States and internationally. Founded in 2010 and public since its 2019 IPO, the company offers a broad, integrated product suite spanning infrastructure and application performance monitoring, log management, synthetic and real user monitoring, product analytics, database and LLM observability, network monitoring, incident response, and security tools including cloud SIEM, threat management, and code security.
As a large-cap player in the Application Software sub-industry of Information Technology, Datadog operates under a subscription-based software-as-a-service (SaaS) model, with its platform designed to help organizations monitor, secure, and manage increasingly complex cloud-native and microservices environments.
- Cloud infrastructure spending growth fuels platform adoption
- AI observability products expand into new market segments
- Operating leverage drives margin expansion amid competitive pressure
| Net Income: 177.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA -0.30 > 1.0 |
| NWC/Revenue: 104.2% < 20% (prev 109.1%; Δ -4.93% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.23b > Net Income 177.6m |
| Net Debt (-3.42b) to EBITDA (281.7m): -12.12 < 3 |
| Current Ratio: 3.20 > 1.5 & < 3 |
| Outstanding Shares: last quarter (368.3m) vs 12m ago 1.93% < -2% |
| Gross Margin: 79.51% > 18% (prev 79.92%; Δ -0.41% > 0.5%) |
| Asset Turnover: 59.34% > 50% (prev 51.80%; Δ 7.54% > 0%) |
| Interest Coverage Ratio: 7.88 > 6 (EBIT TTM 212.6m / Interest Expense TTM 27.0m) |
| A: 0.55 (Total Current Assets 6.01b - Total Current Liabilities 1.87b) / Total Assets 7.55b |
| B: 0.03 (Retained Earnings 234.9m / Total Assets 7.55b) |
| C: 0.03 (EBIT TTM 212.6m / Avg Total Assets 6.69b) |
| D: 1.37 (Book Value of Equity 4.37b / Total Liabilities 3.18b) |
| Altman-Z'' = 5.35 = AAA |
| DSRI: 1.04 (Receivables 827.3m/604.2m, Revenue 3.97b/3.02b) |
| GMI: 1.01 (GM 79.92% / 79.51%) |
| AQI: 1.05 (AQ_t 0.12 / AQ_t-1 0.12) |
| SGI: 1.32 (Revenue 3.97b / 3.02b) |
| TATA: -0.14 (NI 177.6m - CFO 1.23b) / TA 7.55b) |
| Beneish M = -2.75 (Cap -4..+1) = A |
As of October 12, 2026, the stock is trading at USD 293.26 with a total of 3,703,089 shares traded. Over the past week, the price has changed by +5.79%, over one month by +30.18%, over three months by +9.02% and over the past year by +78.74%.
Current recommended Stop Loss: 265.20 (which is 9.6% or 2.5 ATR below the current price).
Datadog has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy DDOG.
- StrongBuy: 31
- Buy: 10
- Hold: 3
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 287.1 | -2.1% |
P/E Trailing = 554.44
P/E Forward = 84.7458
P/S = 25.0944
P/B = 20.6779
P/EG = 1.2748
Revenue TTM = 3.97b USD
EBIT TTM = 212.6m USD
EBITDA TTM = 281.7m USD
Long Term Debt = 985.5m USD (from longTermDebt, last quarter)
Short Term Debt = 44.2m USD (from shortTermDebt, last quarter)
Debt = 1.57b USD (from shortLongTermDebtTotal, last quarter) + Leases 292.3m
Net Debt = -3.42b USD (calculated: Debt 1.57b - CCE 4.99b)
Enterprise Value = 96.1b USD (99.5b + Debt 1.57b - CCE 4.99b)
Interest Coverage Ratio = 7.88 (Ebit TTM 212.6m / Interest Expense TTM 27.0m)
EV/FCF = 83.24x (Enterprise Value 96.1b / FCF TTM 1.15b)
FCF Yield = 1.20% (FCF TTM 1.15b / Enterprise Value 96.1b)
FCF Margin = 29.11% (FCF TTM 1.15b / Revenue TTM 3.97b)
Net Margin = 4.48% (Net Income TTM 177.6m / Revenue TTM 3.97b)
Gross Margin = 79.51% ((Revenue TTM 3.97b - Cost of Revenue TTM 812.7m) / Revenue TTM)
Gross Margin QoQ = 78.59% (prev 79.21%)
Tobins Q-Ratio = 12.74 (Enterprise Value 96.1b / Total Assets 7.55b)
Interest Expense / Debt = 1.72% (Interest Expense 27.0m / Debt 1.57b)
Taxrate = 11.12% (22.2m / 199.8m)
NOPAT = 189.0m (EBIT 212.6m * (1 - 11.12%))
Current Ratio = 3.20 (Total Current Assets 6.01b / Total Current Liabilities 1.87b)
Debt / Equity = 0.36 (Debt 1.57b / totalStockholderEquity, last quarter 4.37b)
Debt / EBITDA = -12.12 (Net Debt -3.42b / EBITDA 281.7m)
Debt / FCF = -2.96 (Net Debt -3.42b / FCF TTM 1.15b)
Total Stockholder Equity = 3.88b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.66% (Net Income 177.6m / Total Assets 7.55b)
RoE = 4.57% (Net Income TTM 177.6m / Total Stockholder Equity 3.88b)
RoCE = 4.37% (EBIT 212.6m / Capital Employed (Equity 3.88b + L.T.Debt 985.5m))
RoIC = 3.42% (NOPAT 189.0m / Invested Capital 5.52b)
WACC = 11.36% (E(99.5b)/V(101b) * Re(11.52%) + D(1.57b)/V(101b) * Rd(1.72%) * (1-Tc(0.11)))
Discount Rate = 11.52% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.31 | Cagr: 1.52%
[DCF] Terminal Value 68.86% ; FCFF base≈1.06b ; Y1≈1.21b ; Y5≈1.78b
[DCF] Fair Price = 62.35 (EV 17.5b - Net Debt -3.42b = Equity 20.9b / Shares 334.9m; r=11.36% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 48.63 | EPS CAGR: 5.85% | SUE: 2.02 | # QB: 4
Revenue Correlation: 99.91 | Revenue CAGR: 27.48% | SUE: 4.0 | # QB: 16
EPS current Quarter (2026-09-30): EPS=0.64 | Chg30d=+0.16% | Revisions=+40% | Analysts=40
EPS current Year (2026-12-31): EPS=2.53 | Chg30d=+0.02% | Revisions=+93% | GrowthEPS=+23.3% | GrowthRev=+30.5%
EPS next Year (2027-12-31): EPS=2.97 | Chg30d=+0.20% | Revisions=+72% | GrowthEPS=+17.7% | GrowthRev=+22.5%
[Analyst] Revisions Ratio: +85% (up=81, down=5)