DDOG
Datadog
$236.44
▲ 3.1%Updated Aug 7, 11:30 AM ET
DDOG at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 39/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 71.5% over the last 12 months
Market Cap
$92.68B
P/E
—
Forward P/E (est.)
—
ROE
3.8%
Revenue Growth
29.5%
EPS Growth
-17.9%
Profit Margin
3.7%
FCF Yield
0.0%
Debt / Equity
0.26x
ROIC
-1.0%
Interest Coverage
—
Current Ratio
3.4x
Dividend Yield
—
Implied Growth (rev. DCF)
7.8%
Rating Score
39/100
Datadog (DDOG) is a large-cap company in the Application Software industry, part of the Information Technology sector of the S&P 500, with a market value around $92.68B.
In its latest reported year it generated about $3.43B in revenue and $107.74M in net profit.
Our model rates DDOG Weak (39/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (9 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
80.5% average over the last 3 years
±1.8 pts around 78.4% across 9 years
grew in 8 of the last 8 year-over-year periods
positive in 9 of 9 years
-1.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what DDOG's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. DDOG trades near $236.44, above its 50-day average ($207.94) and 200-day average ($156.08). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 68 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. DDOG's is $11.38 (~4.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month DDOG found buyers near $212.73 (support) and sellers near $271.26 (resistance); its 52-week range is $98.01–$278.70. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
35.1%
Revenue moved from $100.76M in 2017 to $3.43B in 2025, a 55.4% compound annual growth rate. The most recent year grew a strong 29.5% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
80.0%
Operating Margin
-1.3%
Net Margin
3.1%
ROE
3.8%
Datadog keeps about 3.7% of each sales dollar as net profit, with a 80.0% gross margin and -1.3% operating margin. Return on equity is 3.8% and return on invested capital about -1.0%. Thin margins leave less cushion if costs rise.
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
0.26x
Leverage: debt-to-equity is 0.3x, with a current ratio of 3.4x. That is a conservative balance sheet — a cushion in downturns.
Operating CF
$1.05B
Free Cash Flow
$1.00B
FCF Margin
29.2%
In the latest year Datadog produced about $1.05B of operating cash flow and $1.00B of free cash flow after capital spending. That is a free-cash-flow yield of about 0.0% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
—
P/S
24.21x
P/B
13.07x
EV / EBITDA
—
DDOG trades at n/a trailing earnings, 24.2x sales, and 13.1x book value. Reverse-engineering today's price implies the market expects roughly 7.8% long-term free-cash-flow growth. With no positive trailing earnings, value it on sales, cash flow, or growth rather than P/E.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
—
Current price
$236.44
Starting FCF (latest 10-K)
$1.00B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where DDOG sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How DDOG stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), DDOG ranks #84 of 230 by our overall rating.
P/E vs sector
—
median 38.9x
ROE vs sector
3.8%
median 17.5%
Growth vs sector
29.5%
median 17.7%
Sector rank
#84
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $236.44 today · expected CAGR -45% – -39%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $4.46B | $5.79B | $7.53B | $9.79B | $12.72B |
| Net income | $133.66M | $173.76M | $225.88M | $293.65M | $381.74M |
| EPS | $0.34 | $0.44 | $0.58 | $0.75 | $0.97 |
| Share price (low) | $4.09 | $5.32 | $6.92 | $8.99 | $11.69 |
| Share price (high) | $6.82 | $8.87 | $11.53 | $14.98 | $19.48 |
| CAGR (low–high) | -98% / -97% | -85% / -81% | -69% / -63% | -56% / -50% | -45% / -39% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for DDOG:
- Revenue is growing 29.5% a year, a sign of real demand.
- A conservative balance sheet (debt/equity 0.3x) lowers risk.
The case against DDOG:
- Thin net margins (3.7%) leave little room for error.
- Limited free cash flow at today's price.
- Our model's overall read is Weak (39/100).
Margin risk — thin profitability (3.7%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Datadog is a large-cap information technology business still growing nicely, with modest profitability, and a sound balance sheet. It trades at n/a earnings, which our model scores Weak (39/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 56 Wall Street analysts covering DDOG recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
DDOG's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
DDOG — frequently asked questions
Is DDOG a good stock to buy?
We don't give buy or sell advice. Our model rates Datadog Weak (39/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is DDOG's rating on The Stocks School?
Datadog currently scores 39/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does DDOG's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Datadog's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for DDOG calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this DDOG analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell DDOG. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.