EN DE

Datadog Inc (DDOG) Fair Value & Analysis

Technology · US · Market cap $92.6B · ISIN US23804L1035

DI Datadog Inc logo Datadog Inc DDOG · US
Price$236.98
Fair Value$7.24
Upside-96.9% ⚠
Quality52/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

Watch Datadog Inc for free, get notified when fair value or trend changes. Watch for free

Strengths

✓Healthy Growth (revenue 5y +41.5 %/yr)
✓Low debt · generates free cash flow

Risks

!Trades 3168% ABOVE our fair value of $7.24
!Thin margins · 3.7% net margin
!Trails peers (3/13)
!Narrow moat 20/100
Healthy Growth (revenue 5y +41.5 %/yr)
Thin margins · 3.7% net margin
Low debt · generates free cash flow
Trails peers (3/13)
Narrow moat 20/100
Evidence: High Range $7.24 – $7.24 Share as image

Fair value as of: Aug 27, 2026

From 23 valuation models · updated 3 days ago

Share price −10.3% over the past month.

A solid business, but trading 3,168% above our fair value.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Track Datadog Inc and get told automatically when its fair value or trend turns, plus fair value for all 35,000+ stocks. 14 days of Pro free, no card. Track it free

What matters now

  • The price sits above even our optimistic bull case ($7.24). The favourable scenario is already priced in.
  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

$288.15 $62.69 Fair Value $7.24 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range $62.69 – $288.15 · the $236.98 price screens above the $7.24 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Datadog Inc (DDOG) currently trades at $236.98, while our model-based Fair Value estimate is $7.24, implying the stock looks roughly 96.9% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Datadog Inc generated revenue of $3.7B at a net margin of 3.7%. Revenue grew 32.2% year over year. It earns a return on equity of 3.9%. Net debt stands at $1.1B. Fundamentals as of Aug 27, 2026

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 15% below its 52-week high and 142% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -38% fair-value upside, at -97%, DDOG screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly 0.26 USD per share, which is 3.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely ($0.2000 to $93.27). Read the values as a conservative anchor, not as a price target.
Model 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. Evidence
Highest evidence
Residual Income $8.10 $7.75 $6.42 74
5Y EBITDA Exit $14.58 $19.53 $28.94 73
FCF DCF $49.14 $78.34 $171.30 72
All 23 models by family
DCF Models
FCF DCF $49.14 $78.34 $171.30 72
Owner Earnings $6.81 $17.75 $40.71 67
5Y Revenue Exit $34.44 $59.69 $112.43 67
5Y EBITDA Exit $14.58 $19.53 $28.94 73
5Y P/E Exit $17.34 $30.56 $46.81 67
10Y Revenue Exit $38.13 $82.97 $110.61 64
10Y EBITDA Exit $24.88 $40.20 $61.34 65
10Y P/E Exit $26.89 $46.14 $73.66 60
Earnings-Based
Graham-Dodd $2.21 $15.44 $21.67 61
Lynch FV $7.98 $11.40 $14.82 59
PEG = 1.0 $7.98 $11.40 $14.82 55
Dividend Discount
Gordon GGM $0.1100 $0.2300 $0.3700 64
DDM Multi-Stage $0.1100 $0.2000 $0.2400 65
Multiples
P/E Multiple $6.84 $9.12 $11.40 63
P/S Multiple $4.15 $5.54 $6.92 58
P/B Multiple $4.15 $5.54 $6.92 55
EV/EBITDA $1.43 $2.49 $3.56 65
EV/Revenue $25.76 $37.56 $49.35 53
Asset-Based
NCAV (Graham) $5.64 $7.56 $11.28 54
Growth DCF
Growth DCF $46.12 $93.27 $170.54 72
Rev-Margin DCF $38.14 $68.56 $132.29 67
Economic Profit
Residual Income $8.10 $7.75 $6.42 74
Growth Earnings
Growth-Adj P/E $11.52 $16.46 $21.40 65

Widest divergence: Growth DCF ($68.56) versus Dividend Discount ($0.2000). Highest evidence: Residual Income (74).

Notify me when DDOG reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

P/E ratio 609.0 as of Jun 5, 2026
P/S ratio 19.1 P/E × margin
EPS (TTM) $0.4000 price ÷ EPS = P/E 609.0
Net margin 3.1% FY2025
Return on equity 3.9% TTM
Return on assets (EBIT) -0.7% avg 5y
More key figures
Profitability
Operating margin 0.8% TTM
Growth
Revenue (TTM) $3.7B TTM
Revenue growth (YoY) +32.2% 3y avg +26.9%
EPS growth (YoY) +104%
Balance sheet & cash flow
Free cash flow $1.0B FY2025
Net debt $1.1B FY2025 · ≈ 1.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 60 · Market factors (momentum, volatility) 62

Profitability 36
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 10
Calm price path (market factor)
Momentum 82
Price trend over the last 3–12 months (market factor)
52W Momentum 89
Distance to the 52-week high (market factor)
Net Issuance 50
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$3.4B
Latest YoY
+27.7%
Avg. revenue growth/yr (3Y) ⓘ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.
+26.9%
Avg. revenue growth/yr (5Y) ⓘ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.
+41.5%
Avg. revenue growth/yr (8Y) ⓘ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.
+55.4%
Value creation/yr (3Y) ⓘEarnings growth per share (CAGR 3 years) plus dividend yield: value created per share and year.
+28.8% (28.8 + 0.0)
Revenue +35.1%/yr
FY21 $1.0B
FY22 $1.7B
FY23 $2.1B
FY24 $2.7B
FY25 $3.4B
Net income
FY21 −$20.7M
FY22 −$50.2M
FY23 $48.6M
FY24 $184M
FY25 $108M

DDOG screens 3,168% overvalued. Compare with SAP SE →

Run the numbers yourself: free valuation calculators
DCF CalculatorGraham NumberPeter Lynch FormulaDDM CalculatorFama-French ModelIntrinsic Value
Share or link this analysis
𝕏 Post WhatsApp LinkedIn Reddit
For bloggers & editors: embed code + live data

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.

Datadog Inc · Fair Value
$7.24 −3168%Fair Value
Calculator →

Cite: Fair Value Calculator (2026). "Datadog Inc Fair Value". https://www.fairvalue-calculator.com/stock/DDOG

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Software - Application · 729 stocks

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.

Quality Score 52 · Below median
Fair Value upside −97% · Bottom 25%
Return on equity (TTM) 4% · Above median
Return on assets -0% · Below median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 1% · Below median
Revenue growth 32% · Top 25%
Debt / equity 0.26× · Higher than 75% of peers

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 609.0× · Pricier than 75% of peers
P/B 24.82× · Pricier than 75% of peers
P/S (TTM) 25.23× · Pricier than 75% of peers
P/FCF 92.6× · Pricier than 75% of peers
PEG 1.60× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE100 · sector 38
PAST16 · sector 11
HEALTH87 · sector 98
DIVIDEND0 · sector 29

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
SAP SE SAP €191.32 €169.59 -11%
Shopify Inc SHOP C$209.78 C$28.76 -86%
Uber Technologies, Inc UBER $78.82 $43.66 -45%
Salesforce, Inc CRM $252.05 $249.28 -1%
ServiceNow, Inc NOW $138.43 $43.73 -68%
Cadence Design Systems, Inc CDNS $340.39 $112.57 -67%
Snowflake Inc SNOW $329.11 $42.27 -87%
Adobe Inc ADBE $289.15 $454.04 +57%
Automatic Data Processing, Inc ADP $284.68 $177.51 -38%
Intuit Inc INTU $348.00 $363.46 +4%

Compare Datadog Inc with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Technology stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Discover undervalued stocks

Pick a strategy and jump into the live analysis with that exact screen applied.

🥇 Backtested Best 🏆 Big Names ⭐ Top Rated 💎 Quality on Sale 🚀 Profitable Growth 🧊 Quality Compounders 💵 Dividend Stars 📈 Strong Momentum 📉 Fallen Angels ⚖️ Deeply Undervalued 🔍 Small-Cap Gems 🏰 Moat at a Fair Price 💼 Insider Buying 🎩 Buffett-Style Quality 📚 Peter Lynch GARP 🧮 Greenblatt Magic Formula 🛡️ Graham Defensive

Discover tools

Stock screener Filter by region, size and sector Compare tool Two stocks side by side Fama-French 3-Factor Model Calculator Run the Fama-French 3-factor model in seconds: expected return from the market, size and value factors - free, with formula, betas and an example. Peter Lynch Fair Value Formula & Calculator Apply Peter Lynch's fair value formula in seconds: fair P/E ≈ earnings growth (+ dividend) - free, with formula and example.

Frequently asked questions

Is Datadog Inc (DDOG) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of $7.24 versus a price of $236.98, about −97% (overvalued).
What is the fair value of DDOG?
Our model-based fair value for Datadog Inc is $7.24 (as of Aug 27, 2026), built from audited fundamentals. The current price: $236.98.
What is the quality score of DDOG?
Datadog Inc has a Quality Score of 52/100. 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 revenue of Datadog Inc (DDOG)?
Datadog Inc reported trailing-twelve-month revenue of about $3.7B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of DDOG?
The net profit margin of Datadog Inc is about 3.7%, meaning it keeps roughly 3.7% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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. You can also try 14 days of Pro there, no card.

Watch for free →

Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.