Datadog, Inc. (DDOG)
Information Technology · Application Software · US stock · S&P 500 component
$257.75
▼ -15.34 (5.62%)
Fair valueFair
$218 −15.5% to fair value
$109fair band $185–$264$327
Day's range
$256.42 – $275.81
52-week range
$98.01 – $300.68
About Datadog, Inc.
Datadog provides a cloud-based platform that helps technology teams monitor and secure their software. Its products collect and analyse data on servers, applications, logs and user activity, and show engineers where problems occur. It also offers security tools. Customers range from start-ups to large enterprises across many industries, and they reach the platform through the web instead of installing software, using it mainly to keep cloud applications running reliably.
The company earns money from subscriptions, with customers paying for the products they use and the volume of data they send. Revenue was $4.0 billion over the last twelve months, with growth of 26.9% a year across the last three years. The operating margin is 0.4%, so the business is close to break-even on that measure, and no dividend is paid. On the site's X-Ray Score it receives 50 out of 100.
DDOG news
Datadog Shares Draw Attention as Reports Diverge on DirectionDatadog shares jump on Monday as reports cite an upgrade after a skid
All DDOG news →Price chart
52-wk range $98.01 – $300.68Volume 3,809,557Daily, split-adjusted
Vitals
Market cap$95.6B
52-week range$98.01 – $300.68
Volume (last day)3,809,557
P/E (TTM)530.3
EBIT / EV yield0.0%
Free-cash-flow yield1.2%
Dividend yieldNo dividend
Revenue (TTM)$4.0B
Net income (TTM)$178M
Operating margin0.4%
Return on capital–
Debt incl. leasesData missing
Cash & securities$5.0B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$218middle half of models $207 – $243
Fair
−15.5% to fair value
Average of the 10 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $258
Undervalued < $185Fair $185 – $264Overvalued > $264
P/E multiple
$247
P/B multiple
$232
P/S multiple
$193
EV/EBITDA multiple
$212
EV/EBIT multiple
$147
EV/revenue multiple
$211
10-year DCF, EBITDA exit
$206
5-year DCF, EBITDA exit
$258
10-year DCF, revenue exit
$216
5-year DCF, revenue exit
$257
10-year DCF, growth exit · not used
$13
5-year DCF, growth exit · not used
$13
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
16/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield0.0%
Free-cash-flow yield1.2%
Fair value vs price0.8×
Growth
Strong
83/100
Growing faster than most of its sector.
See the numbers →
Revenue growth (3y)26.9%
Growth consistency100%
Profitability
Fair
62/100
Returns on capital are typical for its sector.
See the numbers →
Operating margin0.4%
Gross profitability41.8%
Financial health
Weak
46/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score6 / 9
Interest cover1.4×
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+24.6%
Mar '25
+28.1%
Jun '25
+28.4%
Sep '25
+29.2%
Dec '25
+32.2%
Mar '26
+35.6%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.1B, diluted EPS $0.12.
Compare with peers
ADBE Adobe Inc.77 INTU Intuit Inc.71 FICO Fair Isaac Corp71 ADSK Autodesk, Inc.67Other Application Software companies by X-Ray Score.
SWOT analysis: Datadog, Inc.
Strengthsinside the company
- Revenue has grown 26.9% a year over three years (median 12.3% for industry peers).
Weaknessesinside the company
- Operating margin of 0.4% is thin against 27.4% for industry peers.
- Operating profit covers interest only 1.4x.
Opportunitiesvaluation and setting
- Our Market Compass rates the backdrop for Information Technology as favourable.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Trades at 538.6x earnings, 1,834% above the 27.8x median of industry peers, so the price already assumes better results.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare DDOG with peers and sector
Medians of 13 Application Software peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): PLTR 63, ORCL 56, CRM 52, ADBE 77, INTU 71, CDNS 49.
| Metric | DDOG | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 50 | 58 | 50 |
| Valuation | 16 | 67 | 52 |
| Growth | 83 | 63 | 54 |
| Profitability | 62 | 61 | 49 |
| Financial health | 46 | 50 | 50 |
| Dividends | – | 72 | 50 |
Sector leaders: highest X-Ray Score in Information Technology
DDOG ranks #37 of 75 in Information Technology and #11 of 14 in Application Software by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for DDOG
Each factor is rated by where DDOG stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 8 Good · 1 Average · 10 Bad of 19
Growth: 2 · 0 · 0
Profitability: 1 · 0 · 3
Financial strength: 1 · 1 · 1
Valuation: 0 · 0 · 5
Cash flow: 4 · 0 · 0
Efficiency: 0 · 0 · 1
| Factor | DDOG | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +26.9% | Good beats 89% | +9.7% | – | – |
| Revenue growth, last year | +27.7% | Good beats 83% | +13.7% | +27.7% | ≈ In line |
| Profitability | |||||
| Gross margin | 79.5% | Good beats 86% | 57.8% | 80.0% | ≈ In line |
| Operating margin | 0.4% | Bad beats 3% | 20.3% | -1.6% | ▲ Better |
| Net margin | 4.5% | Bad beats 11% | 17.8% | 2.3% | ▲ Better |
| Return on equity | 4.1% | Bad beats 11% | 21.0% | 2.4% | ≈ In line |
| Financial strength | |||||
| Interest cover | 1.4x | Bad beats 5% | 23.0x | -3.5x | ▲ Better |
| Current ratio | 3.20 | Good beats 87% | 1.57 | 3.17 | ≈ In line |
| Piotroski F-score | 6 / 9 | Average beats 43% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 538.6x | Bad beats 3% | 33.6x | 458.9x | ▼ Worse |
| Price / book | 21.9x | Bad beats 18% | 8.3x | 18.9x | ▼ Worse |
| Price / sales | 24.1x | Bad beats 3% | 6.9x | 19.1x | ▼ Worse |
| EV / EBITDA | 1,161.0x | Bad beats 1% | 24.7x | – | – |
| Free cash flow yield | 1.2% | Bad beats 16% | 3.4% | 1.6% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 29.8% | Good beats 71% | 22.3% | 29.2% | ≈ In line |
| Cash from operations / net income | 6.92 | Good beats 95% | 1.39 | 9.75 | ▼ Worse |
| Free cash flow growth, 3 years a year | +37.7% | Good beats 83% | +15.4% | – | – |
| Accruals (lower is better) | −13.9% | Good beats 94% | −4.4% | – | – |
| Efficiency | |||||
| Days sales outstanding | 76 days | Bad beats 30% | 63 days | 87 days | ▲ Better |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 7 Good · ● 1 Average · ● 5 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldBad
Risk models
Altman Z''Good
Piotroski F-ScoreAverage
Growth
Free-cash-flow growth (3y)Good
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioGood
Interest coverBad
Valuation
Fair value vs priceBad
EBIT / EV yieldBad
Profitability
Operating marginBad
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 49/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $1.0B | $1.7B | $2.1B | $2.7B | $3.4B |
| Operating income | −$19M | −$59M | −$33M | $54M | −$44M |
| Net income | −$21M | −$50M | $49M | $184M | $108M |
| Operating cash flow | $287M | $418M | $660M | $871M | $1.1B |
| Operating margin | -1.9% | -3.5% | -1.6% | 2.0% | -1.3% |
| Free cash flow | $277M | $383M | $632M | $836M | $1.0B |
| Diluted EPS | $-0.07 | $-0.16 | $0.14 | $0.52 | $0.31 |
Fiscal years, from SEC filings.
Technical summary
Daily
Neutral
7 bullish · 4 neutral · 5 bearish
Weekly
Strongly bullish
10 bullish · 1 neutral · 1 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 269.4 | Bearish |
| EMA 10 | 265.3 | Bearish |
| SMA 20 | 271.3 | Bearish |
| EMA 20 | 264.3 | Bearish |
| SMA 50 | 248.4 | Bullish |
| EMA 50 | 255.0 | Bullish |
| SMA 100 | 248.7 | Bullish |
| EMA 100 | 239.2 | Bullish |
| SMA 200 | 194.1 | Bullish |
| EMA 200 | 211.7 | Bullish |
Oscillators (daily)
| RSI (14) | 48.07 | Neutral |
| MACD (12, 26) | 3.42 | Bullish |
| Momentum (12) | -7.36 | Bearish |
| Stochastic %K (14) | 24.75 | Neutral |
| Williams %R (14) | -75.25 | Neutral |
| CCI (20) | -72.29 | Neutral |
Pivot points (classic, last session)
S3 231.5 | S2 243.9 | S1 250.8 | Pivot 263.3 | R1 270.2 | R2 282.7 | R3 289.6 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold DDOG
| ETF | Share of the fund |
|---|---|
| AIPI REX AI Equity Premium Income | 7.21% |
| FDN First Trust Dow Jones Internet Index | 3.53% |
| IGV iShares Expanded Tech-Software Sector | 3.26% |
| WCLD WisdomTree Cloud Computing | 2.99% |
| IVES Dan IVES Wedbush AI Revolution | 2.72% |
| MOAT VanEck Morningstar Wide Moat | 2.44% |
| IWP iShares Russell Mid-Cap Growth | 2.34% |
| QTEC First Trust NASDAQ-100-Technology Sect... | 2.21% |
The eight funds with the largest weight in DDOG among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
DDOG SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
8-KSEC EDGAR
Shareholder vote results; Other events
8-KSEC EDGAR
Director or officer change
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.