Assessing DoorDash Value After Recent Retail Partnerships and 49% Share Price Surge in 2025

• Wondering if DoorDash is worth the price tag? You're not alone. Diving into its value could help you spot an opportunity, or a risk, long before the crowd does.
• While DoorDash shares have dipped slightly this month, they're still up an impressive 49.1% year-to-date and a massive 393.3% over the past three years.
• DoorDash has recently partnered with major retailers and expanded into new delivery categories. This has fueled speculation that these moves are driving much of the momentum, volatility, and renewed attention around the stock. Headlines about intensified competition and DoorDash's own strategic investments are giving investors even more to consider.
• Right now, DoorDash's valuation score is 2 out of 6, suggesting the market may already be pricing in much of its promise. But how should you judge if it's undervalued, fairly valued, or overvalued? Let's break down the main approaches to figuring that out. Stick around, because the smartest way to cut through the noise might surprise you.

DoorDash scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: DoorDash Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company's intrinsic value by projecting its future cash flows and discounting them back to their value in today's dollars. This approach aims to calculate what DoorDash is really worth, based on its capacity to produce cash in the years ahead.

DoorDash's latest twelve-month Free Cash Flow stands at $1.7 billion, with analyst estimates suggesting this could rise to a projected $5.8 billion by 2028. Looking even further out, extrapolations estimate Free Cash Flow could reach $10.4 billion by 2035. The result is a picture of sustained and significant growth in the company's core cash-generating ability.

Based on these projections, the DCF model calculates an intrinsic value of $326.03 per share. With DoorDash stock currently trading at a 22.0% discount to this fair value, the model implies the market may be underestimating its long-term potential.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests DoorDash is undervalued by 22.0%. Track this in your watchlist or portfolio, or discover 832 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for DoorDash.

Approach 2: DoorDash Price vs Earnings (PE Ratio)

The Price-to-Earnings (PE) ratio is a popular metric for valuing profitable companies because it shows how much investors are willing to pay for each dollar of a company's earnings. For companies like DoorDash that have reached profitability, the PE ratio helps investors judge whether the stock price reflects future growth expectations or carries additional risk.

Typically, a higher PE ratio signals the market expects stronger growth or lower risk. In contrast, a lower PE can indicate concerns over growth prospects or higher risk. What counts as a “normal” or “fair” PE ratio depends on several factors, including industry trends, profit margins, and the company's expected earnings trajectory.

Currently, DoorDash trades at a PE ratio of 139.14x, which is substantially higher than both the hospitality industry average of 23.34x and the peer average of 28.58x. At first glance, this lofty figure might suggest the stock is expensive relative to sector norms. However, Simply Wall St’s proprietary “Fair Ratio” for DoorDash is 57.16x. This metric is customized to reflect factors like the company’s earnings growth outlook, profit margins, market cap, and risk profile, rather than just raw earnings.

Unlike basic peer or industry comparisons, the Fair Ratio provides a more tailored benchmark that considers what actually makes DoorDash unique. While DoorDash’s current PE of 139.14x is far above its Fair Ratio of 57.16x, this difference indicates the market is pricing in much more growth than Simply Wall St’s model suggests is justified.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1410 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your DoorDash Narrative

Earlier we mentioned that there's an even better way to understand valuation, so let's introduce you to Narratives.

A Narrative is simply your own story or perspective on a business like DoorDash. You set out what you believe about its future by connecting the company’s key drivers and competitive position to your own estimates of future revenue, earnings, and fair value.

Narratives bridge the gap between a company’s story and the numbers, turning your own expectations into a living financial forecast and a fair value calculation, all in one clear summary.

On Simply Wall St’s Community page, used by millions of investors, Narratives are an easy and interactive tool that helps you focus on what matters most: your own thesis and how it stacks up against the current market price.

By comparing Fair Value to the actual share Price, Narratives allow you to see instantly whether you believe DoorDash is undervalued or overvalued and to decide when to buy, hold, or sell.

The best part is, Narratives update automatically as new information or earnings come in. This way, your conclusions stay relevant and reflect the latest developments.

For example, some investors' DoorDash Narratives forecast value as high as $360 per share based on rapid international expansion and AI-driven margin improvements. Others see it as low as $205, voicing concerns about competitive risks and operational complexity.

Do you think there's more to the story for DoorDash? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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