Datadog, Inc.

DB:3QD Stock Report

Market Cap: €50.5b

Datadog Valuation

Is 3QD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 3QD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3QD (€147.28) is trading below our estimate of fair value (€206.88)

Significantly Below Fair Value: 3QD is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3QD?

Key metric: As 3QD is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 3QD. This is calculated by dividing 3QD's market cap by their current revenue.
What is 3QD's PS Ratio?
PS Ratio20.7x
SalesUS$2.54b
Market CapUS$52.60b

Price to Sales Ratio vs Peers

How does 3QD's PS Ratio compare to its peers?

The above table shows the PS ratio for 3QD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average15.1x
NEM Nemetschek
12.5x14.1%€11.5b
SAP SAP
7.9x10.3%€262.8b
NB2 Northern Data
28.5x31.5%€2.3b
AOF ATOSS Software
11.4x12.7%€1.9b
3QD Datadog
20.7x18.1%€52.6b

Price-To-Sales vs Peers: 3QD is expensive based on its Price-To-Sales Ratio (20.7x) compared to the peer average (15.1x).

Price to Sales Ratio vs Industry

How does 3QD's PS Ratio compare vs other companies in the DE Software Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
CSH CENIT
0.4x5.2%US$74.07m
CLIQ Cliq Digital
0.09x13.2%US$25.77m
LSX LS telcom
0.5x5.0%US$21.11m
IVX InVision
0.6xn/aUS$9.59m
3QD 20.7xIndustry Avg. 2.2xNo. of Companies7PS02.44.87.29.612+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 3QD is expensive based on its Price-To-Sales Ratio (20.7x) compared to the German Software industry average (2.2x).

Price to Sales Ratio vs Fair Ratio

What is 3QD's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3QD PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio20.7x
Fair PS Ratio18.1x

Price-To-Sales vs Fair Ratio: 3QD is expensive based on its Price-To-Sales Ratio (20.7x) compared to the estimated Fair Price-To-Sales Ratio (18.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 3QD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€147.28
€146.40
-0.6%
10.1%€220.87€122.92n/a40
Nov ’25€114.72
€136.09
+18.6%
11.8%€213.07€106.54n/a38
Oct ’25€102.70
€130.14
+26.7%
8.0%€144.54€103.89n/a37
Sep ’25€105.18
€131.86
+25.4%
8.2%€146.38€105.21n/a37
Aug ’25€105.90
€133.70
+26.3%
9.5%€152.91€90.82n/a38
Jul ’25€122.10
€136.31
+11.6%
13.5%€214.91€91.57n/a37
Jun ’25€100.84
€135.13
+34.0%
12.7%€212.38€106.19n/a37
May ’25€120.26
€138.45
+15.1%
12.3%€214.87€107.43n/a38
Apr ’25€114.60
€137.43
+19.9%
12.6%€214.13€107.07n/a37
Mar ’25€121.44
€136.29
+12.2%
12.8%€212.54€106.27n/a36
Feb ’25€115.44
€117.40
+1.7%
18.1%€211.88€91.20n/a36
Jan ’25€111.20
€108.83
-2.1%
10.6%€133.15€89.67n/a34
Dec ’24€109.18
€106.76
-2.2%
9.5%€128.73€87.35n/a33
Nov ’24€73.20
€98.74
+34.9%
12.5%€125.67€66.14€114.7233
Oct ’24€86.91
€100.99
+16.2%
12.5%€125.80€66.21€102.7032
Sep ’24€90.09
€97.51
+8.2%
13.0%€121.79€64.10€105.1833
Aug ’24€105.52
€96.94
-8.1%
15.7%€127.47€63.74€105.9032
Jul ’24€88.72
€92.52
+4.3%
13.3%€118.01€65.04€122.1030
Jun ’24€88.13
€91.98
+4.4%
14.0%€118.03€65.06€100.8430
May ’24€61.55
€90.53
+47.1%
14.9%€115.25€63.53€120.2629
Apr ’24€62.76
€95.90
+52.8%
11.5%€118.36€70.83€114.6028
Mar ’24€71.41
€96.59
+35.3%
11.6%€118.85€71.12€121.4428
Feb ’24€70.66
€98.08
+38.8%
16.0%€142.65€69.94€115.4428
Jan ’24€68.66
€103.74
+51.1%
16.1%€152.73€77.31€111.2028
Dec ’23€71.94
€107.32
+49.2%
16.6%€156.46€79.20€109.1826
Nov ’23€81.60
€131.53
+61.2%
22.5%€194.38€83.02€73.2025

Analyst Forecast: Target price is lower than the current share price.

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