Datadog, Inc.

NasdaqGS:DDOG Stock Report

Market Cap: US$52.9b

Datadog Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: DDOG ($156.91) is trading below our estimate of fair value ($184.74)

Significantly Below Fair Value: DDOG is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DDOG. This is calculated by dividing DDOG's market cap by their current revenue.
What is DDOG's PS Ratio?
PS Ratio21x
SalesUS$2.54b
Market CapUS$52.94b

Price to Sales Ratio vs Peers

How does DDOG's PS Ratio compare to its peers?

The above table shows the PS ratio for DDOG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average17.4x
HUBS HubSpot
15.3x14.6%US$38.6b
TEAM Atlassian
15.4x15.1%US$72.4b
FICO Fair Isaac
30.3x12.6%US$52.8b
ROP Roper Technologies
8.5x9.2%US$58.1b
DDOG Datadog
21x18.0%US$52.9b

Price-To-Sales vs Peers: DDOG is expensive based on its Price-To-Sales Ratio (21x) compared to the peer average (17.4x).

Price to Sales Ratio vs Industry

How does DDOG's PS Ratio compare vs other companies in the US Software Industry?

77 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-23.2%US$2.19b
PGY Pagaya Technologies
0.7x15.8%US$718.88m
XPER Xperi
0.9x1.8%US$482.82m
EGHT 8x8
0.5x1.5%US$349.52m
DDOG 21.0xIndustry Avg. 5.6xNo. of Companies77PS048121620+
77 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DDOG is expensive based on its Price-To-Sales Ratio (21x) compared to the US Software industry average (5.6x).

Price to Sales Ratio vs Fair Ratio

What is DDOG'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.

DDOG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio21x
Fair PS Ratio15.2x

Price-To-Sales vs Fair Ratio: DDOG is expensive based on its Price-To-Sales Ratio (21x) compared to the estimated Fair Price-To-Sales Ratio (15.2x).

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 DDOG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$156.91
US$157.88
+0.6%
11.5%US$230.00US$128.00n/a41
Dec ’25US$152.75
US$152.93
+0.1%
10.3%US$230.00US$128.00n/a40
Nov ’25US$123.26
US$146.90
+19.2%
11.8%US$230.00US$115.00n/a38
Oct ’25US$113.98
US$144.06
+26.4%
8.0%US$160.00US$115.00n/a37
Sep ’25US$116.26
US$144.12
+24.0%
8.2%US$160.00US$115.00n/a37
Aug ’25US$113.10
US$144.28
+27.6%
9.5%US$165.00US$98.00n/a38
Jul ’25US$130.50
US$145.88
+11.8%
13.5%US$230.00US$98.00n/a37
Jun ’25US$110.18
US$146.34
+32.8%
12.7%US$230.00US$115.00n/a37
May ’25US$126.42
US$148.20
+17.2%
12.3%US$230.00US$115.00n/a38
Apr ’25US$123.15
US$147.61
+19.9%
12.6%US$230.00US$115.00n/a37
Mar ’25US$130.22
US$147.49
+13.3%
12.8%US$230.00US$115.00n/a36
Feb ’25US$126.90
US$127.44
+0.4%
18.1%US$230.00US$99.00n/a36
Jan ’25US$121.38
US$120.15
-1.0%
10.6%US$147.00US$99.00n/a34
Dec ’24US$118.62
US$116.11
-2.1%
9.5%US$140.00US$95.00US$152.7533
Nov ’24US$80.10
US$104.50
+30.5%
12.5%US$133.00US$70.00US$123.2633
Oct ’24US$91.09
US$106.77
+17.2%
12.5%US$133.00US$70.00US$113.9832
Sep ’24US$97.73
US$106.48
+9.0%
13.0%US$133.00US$70.00US$116.2633
Aug ’24US$114.95
US$106.47
-7.4%
15.7%US$140.00US$70.00US$113.1032
Jul ’24US$98.38
US$99.56
+1.2%
13.3%US$127.00US$70.00US$130.5030
Jun ’24US$94.99
US$98.96
+4.2%
14.0%US$127.00US$70.00US$110.1830
May ’24US$65.40
US$99.76
+52.5%
14.9%US$127.00US$70.00US$126.4229
Apr ’24US$72.66
US$102.89
+41.6%
11.5%US$127.00US$76.00US$123.1528
Mar ’24US$75.22
US$103.21
+37.2%
11.6%US$127.00US$76.00US$130.2228
Feb ’24US$82.70
US$106.57
+28.9%
16.0%US$155.00US$76.00US$126.9028
Jan ’24US$73.50
US$110.04
+49.7%
16.1%US$162.00US$82.00US$121.3828
Dec ’23US$77.97
US$111.12
+42.5%
16.6%US$162.00US$82.00US$118.6226

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/17 05:44
End of Day Share Price 2024/12/17 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Datadog, Inc. is covered by 62 analysts. 45 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Adam ShepherdArete Research Services LLP
William PowerBaird
Ishan MajumdarBaptista Research