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Datadog, Inc. — Intrinsic Value & Fair Price

DDOG
NASDAQTechnologySoftware - ApplicationCIK 0001561550datadoghq.comAbout DDOG
Last close · Oct 16, 2026247.11−19.14 (−7.19%)
Market cap$88.7B
Model value · P/E · peers
29.99
Datadog closed at $247.11 — overvalued by 724% vs model.
20.88the model's range43.51

P/E · peers leads because DCF · Perpetuity growth · 5y could not lead: the cash-flow gate is shut (an operating loss, or three years of free cash flow summing below zero). From its peers' median P/E.

Other models
63.32 – 76.71
Wall St. target
300.00 18% below
Above model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Valuation models

price $247.11 · as of Oct 17, 2026

P/E · peers leads because DCF · Perpetuity growth · 5y could not lead: the cash-flow gate is shut (an operating loss, or three years of free cash flow summing below zero). How we value a stock walks through every input. The price is 724% above the model value: the models see only the filed business, and a company priced on businesses with no revenue line yet is better taken apart, as Tesla is.

engine pkg:0.1.0

Research on DDOG

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How it is valued

Valued asSoftware
High revenue growth (~27% recent)Thin margins (3.1% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for software companies
Price / sales
25.0×
Revenue growth
27.7%
Gross margin
80.0%
FCF margin
29.2%
Rule of 40
56.9%
Operating margin
-1.3%
Full financials

Analyst actions

third-party, quoted
10-15Mizuho Securities · target330.00
10-13Barclays · target300.00
10-12RBC Capital · target320.00
07-21Jefferies · “Hold” from “Buy”downgrade
Ratings, targets and estimates

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About Datadog

Datadog, Inc. offers a comprehensive cloud-based monitoring and analytics solution, serving the needs of developers, IT operations personnel, and business stakeholders across North America and internationally. This Software-as-a-Service (SaaS) offering skillfully combines and automates several crucial functions, including infrastructure oversight, application performance tracking, log management, and security surveillance, all designed to deliver live, end-to-end visibility into its customers' technology environments. Additionally, the platform extends its capabilities to include user experience monitoring, network performance analytics, robust cloud security measures, specialized observability tools for developers, and efficient incident response management. It also comes equipped with standard features like configurable dashboards, sophisticated analytical tools, collaborative features, and proactive alert systems. The company was founded in 2010 and is based in New York, New York.

CEO
Olivier Pomel
Headquarters
New York City, NY
Employees
8,100
IPO
2019-09-19
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.