Datadog, Inc.

LSE:0A3O Stock Report

Market Cap: US$52.6b

Datadog Valuation

Is 0A3O undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 0A3O when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0A3O ($153.75) is trading below our estimate of fair value ($204.41)

Significantly Below Fair Value: 0A3O is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A3O?

Key metric: As 0A3O is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0A3O. This is calculated by dividing 0A3O's market cap by their current revenue.
What is 0A3O's PS Ratio?
PS Ratio20.7x
SalesUS$2.54b
Market CapUS$52.60b

Price to Sales Ratio vs Peers

How does 0A3O's PS Ratio compare to its peers?

The above table shows the PS ratio for 0A3O vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.7x
SGE Sage Group
5.5x7.9%UK£12.8b
BYIT Bytes Technology Group
5.4x11.0%UK£1.1b
GBG GB Group
3.3x6.9%UK£932.8m
CER Cerillion
12.5x10.6%UK£546.4m
0A3O Datadog
20.7x18.1%US$52.6b

Price-To-Sales vs Peers: 0A3O is expensive based on its Price-To-Sales Ratio (20.7x) compared to the peer average (6.7x).

Price to Sales Ratio vs Industry

How does 0A3O's PS Ratio compare vs other companies in the GB Software Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.3xn/aUS$79.55m
SWG Shearwater Group
0.4xn/aUS$10.90m
MBO MobilityOne
0.01xn/aUS$3.00m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
0A3O 20.7xIndustry Avg. 2.4xNo. of Companies13PS0246810+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0A3O is expensive based on its Price-To-Sales Ratio (20.7x) compared to the UK Software industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is 0A3O'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.

0A3O PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio20.7x
Fair PS Ratio22x

Price-To-Sales vs Fair Ratio: 0A3O is good value based on its Price-To-Sales Ratio (20.7x) compared to the estimated Fair Price-To-Sales Ratio (22x).

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 0A3O forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$153.75
US$152.45
-0.8%
10.1%US$230.00US$128.00n/a40
Nov ’25US$122.76
US$146.90
+19.7%
11.8%US$230.00US$115.00n/a38
Oct ’25US$114.00
US$144.06
+26.4%
8.0%US$160.00US$115.00n/a37
Sep ’25US$116.00
US$144.12
+24.2%
8.2%US$160.00US$115.00n/a37
Aug ’25US$112.17
US$144.28
+28.6%
9.5%US$165.00US$98.00n/a38
Jul ’25US$131.08
US$145.88
+11.3%
13.5%US$230.00US$98.00n/a37
Jun ’25US$108.78
US$146.34
+34.5%
12.7%US$230.00US$115.00n/a37
May ’25US$126.43
US$148.20
+17.2%
12.3%US$230.00US$115.00n/a38
Apr ’25US$124.03
US$147.61
+19.0%
12.6%US$230.00US$115.00n/a37
Mar ’25US$130.50
US$147.49
+13.0%
12.8%US$230.00US$115.00n/a36
Feb ’25US$126.75
US$127.44
+0.5%
18.1%US$230.00US$99.00n/a36
Jan ’25US$121.79
US$120.15
-1.3%
10.6%US$147.00US$99.00n/a34
Dec ’24US$118.17
US$116.11
-1.7%
9.5%US$140.00US$95.00n/a33
Nov ’24US$79.59
US$104.50
+31.3%
12.5%US$133.00US$70.00US$122.7633
Oct ’24US$91.67
US$106.77
+16.5%
12.5%US$133.00US$70.00US$114.0032
Sep ’24US$97.93
US$106.48
+8.7%
13.0%US$133.00US$70.00US$116.0033
Aug ’24US$115.30
US$106.47
-7.7%
15.7%US$140.00US$70.00US$112.1732
Jul ’24US$99.31
US$99.56
+0.3%
13.3%US$127.00US$70.00US$131.0830
Jun ’24US$94.98
US$98.96
+4.2%
14.0%US$127.00US$70.00US$108.7830
May ’24US$67.43
US$99.76
+47.9%
14.9%US$127.00US$70.00US$126.4329
Apr ’24US$72.48
US$102.89
+42.0%
11.5%US$127.00US$76.00US$124.0328
Mar ’24US$76.08
US$103.21
+35.7%
11.6%US$127.00US$76.00US$130.5028
Feb ’24US$77.40
US$106.57
+37.7%
16.0%US$155.00US$76.00US$126.7528
Jan ’24US$72.66
US$110.04
+51.4%
16.1%US$162.00US$82.00US$121.7928
Dec ’23US$76.91
US$111.12
+44.5%
16.6%US$162.00US$82.00US$118.1726
Nov ’23US$80.85
US$129.92
+60.7%
22.5%US$192.00US$82.00US$79.5925

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

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