Datadog Inc (DDOG) fair value: what the stock is really worth
As of Oct 14, 2026: fair value of Datadog Inc $32.52, price $269, upside -87.9%, quality 59 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 13, 2026.
How to read this chart
60‑month range $62.69 – $293.26 · fair‑value band $22.76 – $42.28 · the $269.33 price screens above the $32.52 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 13, 2026.
Follow Datadog in your weekly email
Every Wednesday you see whether Datadog is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally.
Show moreShow less
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.
Stock analysis
Datadog Inc (DDOG) currently trades at $269.33, while our model-based Fair Value estimate is $32.52, 87.9% below the price, so the stock looks overvalued today.
Show more
Valuation
Bull case: the Growth DCF group reads highest at a median of $67.88 per share, and 0 of the 21 models we run sit above the $269.33 price.
Bear case: the Multiples group reads lowest at $5.47, and 21 of the 21 models stay below the price. Data coverage for this calculation is low.
Scenario range: $22.76 (bear) to $42.28 (bull), the price of $269.33 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 59/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Datadog Inc reported revenue of $3.4B in FY2025 versus $1.0B in FY2021, a compound +35.1%/yr. Reported net income was $108M in FY2025.
Key figures
Market cap $99.2B · P/E ratio 503.8 · P/S ratio 15.8 · EPS (TTM) $0.5100 · Net margin 3.1% · Return on equity 4.7% · Return on assets (EBIT) −0.7% · Operating margin 0.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 71 out of 100 (medium confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 8% below its 52-week high and 162% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at 10% fair-value upside, at −88%, DDOG screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely ($2.46 to $92.95). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear$22.76Fair Value $32.52Bull$42.28
Price $269.33 · Upside -87.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($0.4024 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
5Y EBITDA Exit$14.53$19.43$28.7773
FCF DCF$48.98$78.07$170.7172
Growth DCF$45.97$92.95$169.9572
All 21 models by family
DCF Models
FCF DCF$48.98$78.07$170.7172
Owner Earnings$7.14$18.47$42.2467
5Y Revenue Exit$34.15$59.11$111.2467
5Y EBITDA Exit$14.53$19.43$28.7773
5Y P/E Exit$17.25$30.36$46.4567
10Y Revenue Exit$37.88$82.28$109.5964
10Y EBITDA Exit$24.79$40.03$61.0465
10Y P/E Exit$26.78$45.90$73.2160
Earnings-Based
Graham-Dodd$2.19$15.26$21.4161
Lynch FV$7.88$11.26$14.6459
PEG = 1.0$7.88$11.26$14.6455
Multiples
P/E Multiple$6.76$9.01$11.2663
P/S Multiple$4.10$5.47$6.8458
P/B Multiple$4.10$5.47$6.8455
EV/EBITDA$1.41$2.46$3.5165
EV/Revenue$25.45$37.10$48.7553
Asset-Based
NCAV (Graham)$5.57$7.47$11.1454
Growth DCF
Growth DCF$45.97$92.95$169.9572
Rev-Margin DCF$37.81$67.88$130.9267
Economic Profit
Residual Income$8.04$7.78$7.8768
Growth Earnings
Growth-Adj P/E$11.38$16.26$21.1465
P/S and P/B multiple show the same value here: both are capped by the same earnings anchor (earnings per share times 17), because margin and return on equity do not support the sector multiple.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+27.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+26.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+41.5%
Start year 2020 (pandemic)
Revenue growth 8 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+55.4%
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 3 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 3 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+28.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+28.8%
Dividend (yield on the price)0.0%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−2% → −1%
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+42.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+20.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +39.1% a year for the price and +18.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Negative
Recent news coverage is more negative than average.
AI conclusion: The business shows a durable platform moat via observability leadership and high gross margins, offset by modest net returns from its investment phase.
Main risk: Normalization in usage-based consumption would reduce revenue expansion from existing customer accounts in its cloud monitoring model.
Datadog grows mostly by expanding usage inside existing accounts as customers adopt more of its 26-plus products for monitoring complex cloud setups. Non-AI customers have lifted their spending growth into the high twenties while AI-native users add another layer of demand. Our models currently see the stock as overvalued. Will deeper product penetration across the base deliver more sustained expansion than any normalization in usage-based consumption?
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 659 stocks
Beats the industry median on 2/13 measures
Overall it trails its industry peers.
Valuation
Quality Score59 · Above median
Fair Value upside−87.9% · Bottom 25%
Profitability
Return on equity (12 months)4.7% · Below median
Return on assets1.6% · Below median
Net margin (12 months)4.5% · Below median
Operating margin (12 months)0.7% · Below median
Growth and dividend
Revenue growth35.6% · Top 25%
Balance sheet
Debt / equity0.26× · Highest 25%
Valuation Multiplesvs Software - Application median · lower = cheaper
P/E (12 months)503.8× · Priciest 25%
P/B26.58× · Priciest 25%
P/S (12 months)25.01× · Priciest 25%
Price / free cash flow99.1× · Priciest 25%
PEG1.27× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 32
FUTURE (revenue growth)100· sector 41
PAST (return on equity)19· sector 19
HEALTH (low debt)87· sector 97
DIVIDEND (yield)0· sector 32
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Datadog Inc Fair Value". https://www.fairvalue-calculator.com/stock/DDOG
Frequently asked questions
Is Datadog Inc (DDOG) overvalued or undervalued?
As of Oct 13, 2026, our model estimates a fair value of $32.52 versus a price of $269.33, about −88% upside (overvalued).
What is the fair value of DDOG?
Our model-based fair value for Datadog Inc is $32.52 (as of Oct 13, 2026), built from audited fundamentals. The current price: $269.33.
What is the quality score of DDOG?
Datadog Inc has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Datadog Inc (DDOG)?
Our model-based price target is the fair value of $32.52 (as of Oct 13, 2026) from 21 valuation models. Cautious scenario $22.76, optimistic scenario $42.28. It is a calculation from audited fundamentals, not an analyst target.
What is the Datadog Inc stock forecast for 2026?
Our models put fair value at $32.52, about −88% upside versus a price of $269.33 (overvalued). Cautious scenario $22.76, optimistic scenario $42.28. The calculation is refreshed regularly with new filings.
What is the revenue of Datadog Inc (DDOG)?
Datadog Inc reported trailing-twelve-month revenue of about $4.0B (latest available figure, as of Oct 13, 2026).
What growth is priced into Datadog Inc (DDOG)?
For today's price to be fair in a discounted-cash-flow model, Datadog Inc would have to grow free cash flow by +42.4 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +41.5 % per year. As of Oct 13, 2026.
What discount rate (WACC) does the fair value of DDOG use?
Our models discount Datadog Inc at 10.4 %: a base by market capitalisation (large), damped by beta 1.49, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Datadog Inc that is +42.4 % per year a year over ten years, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has Datadog Inc (DDOG) delivered so far?
Over the past 5 years revenue at Datadog Inc grew +41.5 % a year. The price currently implies +42.4 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Datadog Inc (DDOG) growing?
The median revenue growth in the sector is +10.6 % a year. That is the yardstick for the growth priced into Datadog Inc (+42.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Datadog Inc (DDOG)?
The free-cash-flow yield on the price is 1.01 %: that much free cash flow Datadog Inc produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Datadog Inc (DDOG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Datadog Inc it is $32.52 per share (as of Oct 13, 2026), against a price of $269.33. It is the blended result of 21 valuation models (cash flow, earnings, asset, dividend).
Is Datadog Inc stock overvalued or undervalued in 2026?
As of Oct 13, 2026, DDOG trades above its calculated fair value: price $269.33, fair value $32.52, a gap of about −88% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of DDOG?
No. The price is what the market pays today ($269.33); the fair value is what the company's own numbers justify ($32.52). For Datadog Inc the two are $236.81 per share apart. That gap is exactly why we show both numbers side by side.
How much is Datadog Inc worth?
The market values Datadog Inc at about $99.2B (market capitalisation, as of Oct 13, 2026). Per share that is $269.33; our models calculate a fair value of $32.52 per share.
What do the bullish and bearish scenarios say about DDOG?
Our models span a range for Datadog Inc: cautious scenario $22.76, base $32.52, optimistic $42.28 per share (as of Oct 13, 2026, price $269.33). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of DDOG?
The PEG ratio of Datadog Inc is 1.27 (P/E divided by earnings growth, as of Oct 13, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Datadog Inc (DDOG)?
Balance-sheet figures for Datadog Inc (as of Oct 13, 2026): return on equity 4.7%, debt of 0.26 per unit of equity. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is DDOG from its 52-week high?
Datadog Inc trades at $269.33, about 8% below its 52-week high of $293.26 and 162% above the low of $102.62 (as of Oct 14, 2026). Distance from the high says nothing about value: that is what the fair value of $32.52 is for.
Which stocks are comparable to Datadog Inc?
From the same area (Technology) we also value SAP SE, Salesforce, Inc, Shopify Inc, ServiceNow, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Datadog Inc stock attractive at the current price?
The data as of Oct 13, 2026: price $269.33, calculated fair value $32.52 (−88%), Quality Score 59/100, from 21 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of DDOG calculated?
We run Datadog Inc through 21 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $32.52, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.7 % above its aggregate fair value. Datadog Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Datadog Inc (DDOG)?
The closing price on Oct 14, 2026 was $269.33. Our model-based fair value is $32.52, about −88% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Datadog Inc right now?
The price sits above even our optimistic bull case ($42.28). The favourable scenario is already priced in. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($22.76 to $42.28) leaves room in how you read the outcome.
Key figures of Datadog Inc
How large is the market capitalisation of Datadog Inc (DDOG)?
The market capitalisation of Datadog Inc is $99.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/E ratio of Datadog Inc (DDOG)?
The price-to-earnings ratio of Datadog Inc is 503.8 (as of Sep 26, 2026). Price to earnings: how many years of current profit you pay for the stock. A P/E of 10 means ten years of profit.
What is the P/S ratio of Datadog Inc (DDOG)?
The price-to-sales ratio of Datadog Inc is 15.8 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Datadog Inc (DDOG)?
Earnings per share at Datadog Inc are $0.5100 (price ÷ EPS = P/E 503.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Datadog Inc (DDOG)?
The net margin of Datadog Inc is 3.1% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Datadog Inc (DDOG)?
The return on equity (ROE) of Datadog Inc is 4.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Datadog Inc (DDOG)?
On an EBIT basis the return on assets of Datadog Inc is −0.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Datadog Inc (DDOG)?
The operating margin of Datadog Inc is 0.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Datadog Inc (DDOG)?
Revenue at Datadog Inc is growing +35.6% versus a year earlier (3y avg +26.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Datadog Inc (DDOG)?
Earnings per share at Datadog Inc are growing +15.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Datadog Inc (DDOG) carry?
The net debt of Datadog Inc is $1.1B (fiscal year 2025, ≈ 1.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Datadog Inc in the live analysis
One click puts Datadog Inc on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener.
Thin data
Oct 13, 2026