Stock · DDOG · Technology

Datadog Inc

United States · Large Cap · listed since 2019 · Revenue 12 mo. $4B

Price as of 11/06/2026

StockScorer score
3.6
of 10 4 of 11 points Low Match To the score
Price
$179.04
1 Y −15.8%
Market cap
$70B
Phase
Build-up
revenue growing, core business not yet profitable
Revenue +26.9% a year (3 years)EBIT margin −1.3%Payout 0.0% of operating cash flow

Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally.

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Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally. The company's products comprise infrastructure and application performance monitoring, log management, observability pipelines, synthetics, real user monitoring, product analytics, continuous profiler, database monitoring, data observability, LLM observability, error tracking, network monitoring, incident response, workflow automation and App builder, event management, bits AI SRE, cloud cost management, cloud security, code security, cloud SIEM, threat management, sensitive data scanner, and CI visibility. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.

Original text from the data provider

Summary

Datadog Inc is below the middle of the Technology sector overall

37.1 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 25.7% FCF growth a year, less than achieved over the last 5 years.

If free cash flow stays at €897.9M (2025), it supports €10B. The remaining €52.8B of the market value assume it grows 25.7% a year for 10 years and not at all afterwards.

Required FCF growth per year

25.7%

no growth afterwards

Market value breakdown€62.8B market value, price as of 11/06/2026

€10B without growth
€52.8B priced-in growth
  • 5 yrs achieved 53.2%
  • priced in 25.7%

Valuation against its own history

Price to operating cash flow 53.6×, within its usual range.

Middle half of 20 quarters: 51.7× to 68.7×, median 59.4×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

3 signs support the expectation, 3 speak against it.

What supports it

with respect to the priced-in expectation

  • Expectation below the company's own record priced in 25.7%, achieved at least 53.2%
  • High, stable gross margin median 78.4%, range 5.3 pp (9 years)
  • Low capital needs capex median 3.9% of revenue (9 years)

What speaks against it

with respect to the priced-in expectation

  • Earnings declined earnings −41.4% year on year
  • Volatile earnings 6 drops or sign changes in up to 10 years
  • Profit well above operating result 11.78 times EBIT, last 12 months

Since the last quarter

Q1 → Q2 2026

Mostly better than the previous quarter: 3 of 3 changes for the better.

  • Revenue, 12 mo.$3.7B → $4.0B+8.0%better
  • FCF, 12 mo.$1.1B → $1.2B+7.6%better
  • EBIT margin−0.7% → 0.4%+1.1 ppbetter

5 more unchanged: Gross margin, FCF margin, Net debt, Shares outstanding, Return on equity

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability39.9below the middleEarns less than the sector: Return on capital (Greenblatt) −1.02%, sector 29.77%.
MetricStockSector medianPosition in sector
Return on equity2.89%14.60%Rank 17
Return on capital (Greenblatt)−1.02%29.77%Rank 6
EBIT margin−1.29%17.40%Rank 7
FCF margin29.19%18.54%Rank 81
Gross margin79.96%48.47%Rank 90
Growth57.4around the middleGrows about as fast as the sector.
MetricStockSector medianPosition in sector
Revenue growth, 1 year27.68%12.70%Rank 82
Earnings growth, 3 years per yeardoes not count towards the rank–9.54%
Earnings growth, 5 years per yeardoes not count towards the rank–14.07%
Sustainable growth (ROE × retained earnings)1.45%2.87%Rank 33
Valuation15.7below the middleValued higher than the sector: EV/sales 19.56, sector 5.18.
MetricStockSector medianPosition in sector
Earnings yield0.17%2.64%Rank 12
FCF yield1.43%3.06%Rank 25
EV/saleslower is better19.565.18Rank 10
EV/EBITlower is betterdoes not count towards the rank–26.24
Momentum36.7below the middleShare price doing worse than the sector: Share price, 3 months −18.33%, sector −5.84%.
MetricStockSector medianPosition in sector
Share price, 1 year−15.78%−0.59%Rank 32
Share price, 6 months−10.07%−4.46%Rank 43
Share price, 3 months−18.33%−5.84%Rank 30
Distance from 52-week high−38.95%−33.23%Rank 41
Quality18.1below the middleQuality below the sector: Price reaction to results, market-adjusted −18.78%, sector −1.57%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better6.31%1.65%Rank 32
Change in share countlower is better1.35%−0.17%Rank 19
Dividend streak in years–8Rank 18
Price reaction to results, market-adjusted−18.78%−1.57%Rank 3
Balance sheet & risk55.0around the middleRisk about like the sector.
MetricStockSector medianPosition in sector
Equity ratio56.18%53.98%Rank 57
Net debt/EBITDAlower is better−15.17−0.20Rank 98
Debt to equitylower is better0.410.33Rank 44
Volatility, 1 yearlower is better72.26%50.37%Rank 21

Ten years in figures

Revenue from $100.8M (2017) to $3.4B (2025), 55.4% a year.

Fiscal years, amounts in USD
YearRevenueEBIT marginFCFSharesNet debt
2017$100.8M−2.9%$6.0M239M−$60.0M
2018$198.1M−5.6%−$5.0M213M−$53.6M
2019$362.8M−5.6%$791.0K280M−$536.9M
2020$603.5M−2.3%$83.2M300M$418.7M
2021$1.0B−1.9%$250.5M309M$536.8M
2022$1.7B−3.5%$353.5M315M$498.5M
2023$2.1B−1.6%$632.4M350M$572.0M
2024$2.7B2.0%$835.9M359M$595.2M
2025$3.4B−1.3%$1.0B363M$1.1B
3.6 / 10Low MatchStockScorer score4 of 11 points

2 of 7 StockScorer Score rules met · How the score is built

Datadog Inc mainly meets criteria in the Growth category. Result from 18 strategies checked.

This stock · Profitability: 33%This stock · Growth: 50%This stock · Valuation: 0%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Datadog Inc's score is built

Datadog Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

2 of 7 rules met

4 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector mediannot met0 of 2 points
  3. Return on equity above the sector mediannot met0 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%met2 of 2 points
  6. 3-year earnings growth above 12% p.a.no data0 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Datadog Inc stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Moat Quality
  • Undervalued Stocks: Multi-Factor Check
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Defensive: Low Volatility
  • Dividend Aristocrats & Continuity
  • Dividend Quality: 4 Factors
  • Balanced GARP
  • Levermann Strategy (13 Criteria)
  • Magic Formula: Value + Quality
  • PEG Strategy (inspired by Peter Lynch)
  • Trending Value: Value + Momentum
  • Growth Momentum (CAN SLIM principle)

Datadog Inc key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Datadog Inc.

MetricStockSector
P/E ratio604.035.1
P/B ratio17.45.5
Return on equity (ROE)2.9%14.6%
Equity ratio56.2%54.0%
Debt-to-equity (D/E)0.410.33
Dividend yield0.0%0.9%

Similar stocks in Technology

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
DDOGDatadog Incthis page
MSTRMicroStrategy IncorporatedLow0.0
ADSKAutodesk IncHigh8.2
CDNSCadence Design Systems IncLow4.5
INTUIntuit Inclocked
WDAYWorkday Inclocked

Frequently asked questions about Datadog Inc stock

How does Datadog Inc stock (DDOG) score in the StockScorer model?
Datadog Inc stock reaches a StockScorer score of 3.6 out of 10, which is a low match with the rule-based strategies. 2 out of 7 flagship profile rules are met.
What is Datadog Inc's P/E ratio?
Datadog Inc's P/E ratio is 604.0. The Technology sector median is 35.1.
What sector is Datadog Inc in?
Datadog Inc is assigned to the Technology sector. Its rank within the sector is 37.1 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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