Stock Analysis
Datadog, Inc. Class A Common StockDDOG
P/E 499.66×· not meaningful — TTM earnings temporarily depressed
Sector: Technology · Industry: Services-Prepackaged Software
AnalystsStrong Buy56 analystsPrice is 76% of the way from the year's low to its high.
Cash covers 390% of debt · Q2 2026.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Financial Health93
- Quality90
Risks
- Profitability21
- Growth50
Mixed picture — no clear quality or value edge.
Market context
-7.2% today· Z 2.9σ· DDOG dropped 6.41% amid broader tech sector weakness despite a recent price target hike to $330 by Mizuho.
Bull Case
- ✓Altman Z 18.1 — safe-zone balance sheet
- ✓Revenue CAGR 35.1% — durable top-line growth
- ✓Interest coverage 8.7× — debt well covered
Why is DDOG moving?
SectorDDOG dropped 6.41% amid broader tech sector weakness despite a recent price target hike to $330 by Mizuho.
Profile
Strong financial health and earnings quality; valuation and profitability lag behind.
How is each axis scored?
- Valuation10/100 · Weak
- P/E vs own history (66th pct)5/25
- FCF yield (1.3%)5/25
- P/S (22.4x)0/25
- EV/EBIT (5202.5x)0/25
- Growth50/100 · Moderate
- Revenue CAGR (35.1%)25/25
- Net income CAGR (n/a)0/25
- EPS CAGR 5Y (n/a)0/25
- Fwd implied growth (478.6%)25/25
- Profitability21/100 · Weak
- ROIC (2.0%)5/25
- ROE (4.1%)5/25
- Net margin (4.5%)6/25
- Operating margin (0.4%)5/25
- Financial Health93/100 · Strong
- Altman Z (18.14)25/25
- Current ratio (3.20)25/25
- Interest coverage (8.7x)18/25
- Net cash / debt (Net cash)25/25
- Quality90/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.80)25/25
- FCF conversion (666%)25/25
- Margin stability (σ 3.1%)25/25
- Moat55/100 · Moderate
- ROIC >12% years (0/6 yrs)0/25
- Median gross margin (79.3%)25/25
- FCF-positive years (7/7 yrs)25/25
- Worst-year net margin (worst -4.6%)5/25
Risk Flags
- ⚠SBC 20.7% of revenue — real dilution cost
- ⚠4 loss-making years in recent history
About Datadog, Inc. Class A Common Stock
Datadog is a cloud-native company that focuses on analyzing machine data. Show more
The firm's product portfolio, delivered via software as a service, enables clients to monitor and analyze their entire information technology infrastructure, from servers to applications and Python scripts. Datadog's platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to utilize it for a variety of applications throughout their businesses to ensure uptime and latency objectives.
Headquarters: NEW YORK, NY · Employees: 8,100 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
10EP/E (TTM)499xC
Grade C: DistortedTTM earnings are temporarily depressed — this multiple overstates expensiveness. Forward P/E is a better guide — vs own 5Y history: 184.2x–26258.0x · 66th pct
P/FCF88.9xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield1.3%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 0.3%–2.9% · 36th pct
P/S (TTM)22.35xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 10.5x–68.8x · 73rd pct
EV/EBIT5202.5xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 3751.0x–6090.5x · 91st pct
EV/Sales24.2xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E86.3xD
Grade D: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio20.30xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio27.49D
Grade D: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
21EROIC2.0%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE4.1%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA2.6%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin4.5%D
Grade D: LowNet Income / Revenue
Operating Margin0.4%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin79.5%A
Grade A: PremiumGross Profit / Revenue
FCF Margin29.8%A
Grade A: HighFCF / Revenue
True FCF Margin9.1%C
Grade C: AverageTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
50CRevenue CAGR35.1%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR—
Compound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)—
Compound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth478.6%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+17.0%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income463.5%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue20.7%D
Grade D: HighTTM stock-based comp / TTM Revenue
Financial Health
93A+Altman Z-Score18.14A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio3.20xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio3.15xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage8.7xC
Grade C: OkEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.29xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt3.90xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
90A+Piotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.80A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion665.7%A
Grade A: StrongFCF / Net Income
Margin Stability3.1%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue1.2%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.58xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Le-Quoc Alexis Filed | Le-Quoc Alexis | SellC | -53912 | |
Le-Quoc Alexis Filed | Le-Quoc Alexis | Option exercise | +10.7K | |
Le-Quoc Alexis Filed | Le-Quoc Alexis | Option exercise | -10688 | |
Le-Quoc Alexis Filed | Le-Quoc Alexis | SellOpen market sale | -600 | |
Le-Quoc Alexis Filed | Le-Quoc Alexis | SellOpen market sale | -1300 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Le-Quoc Alexis Filed | Le-Quoc Alexis | SellOpen market sale | -1700 | |
Le-Quoc Alexis Filed | Le-Quoc Alexis | SellOpen market sale | -2272 | |
Le-Quoc Alexis Filed | Le-Quoc Alexis | SellOpen market sale | -8268 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
55CROIC >12% Years0/6 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)79.3%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years7/7 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor-4.6%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$0.49
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$13.89
Cash & short-term investments per share (Finnhub)
Book Value / Share$12.17
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$1.28B
Total debt obligations (short + long term)
Cash & Equiv.$4.99B
Cash and short-term investments
Net Debt$-3.71BA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$4.37B
Shareholders' equity (book value)
Asset / Liability2.37xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$88.66B
Current Market Capitalization
Beta1.51C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Datadog, Inc. Class A Common Stock (DDOG)
DDOG is down 7.19% at the last close — DDOG dropped 6.41% amid broader tech sector weakness despite a recent price target hike to $330 by Mizuho.. Piotroski F-Score of 6/9 indicates mixed fundamentals for Datadog, Inc. Class A Common Stock. Altman Z-Score of 18.14 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.80 suggests a low likelihood of earnings manipulation. Revenue has compounded at roughly 35% annually — a strong growth profile.
- Datadog, Inc. Class A Common Stock converts about 30% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- Datadog, Inc. Class A Common Stock posted a net loss in 4 of 7 available completed fiscal years (2019–2025).
- At a valuation score of 10/100, DDOG trades at a premium to its historical multiples (P/E 499.3).
See how DDOG ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all DDOG moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 16 | Regular | 247.10 | -7.19% | -2.92 |
| Oct 16 | After-hours | 246.92 | -7.26% | -2.94 |
| Oct 14 | Regular | 270.66 | -4.48% | -2.20 |
| Oct 14 | After-hours | 267.00 | -5.77% | -2.72 |
| Oct 9 | Regular | 292.14 | +6.70% | 2.51 |
Frequently Asked Questions about DDOG
What is the current Datadog, Inc. Class A Common Stock (DDOG) stock price?
DDOG is trading at $247.11 at the last market close, down 7.19% on the session. PreMarketPrice tracks DDOG pre-market, intraday and after-hours prices.
Is DDOG stock a buy right now?
PreMarketPrice's quantitative model rates Datadog, Inc. Class A Common Stock's financial health at 93/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is DDOG stock overvalued?
Datadog, Inc. Class A Common Stock trades at a trailing P/E of 499.3 and our valuation score rates it 10/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Datadog, Inc. Class A Common Stock report earnings?
No confirmed earnings date is currently scheduled for DDOG. The Earnings section lists recent reports and updates as dates are announced.
What sector does Datadog, Inc. Class A Common Stock operate in?
Datadog, Inc. Class A Common Stock operates in the Technology sector, within the Services-Prepackaged Software industry. The Related Stocks section lists sector peers for comparison.
What does Datadog, Inc. Class A Common Stock do?
Datadog is a cloud-native company that focuses on analyzing machine data.
About Datadog, Inc. Class A Common Stock (DDOG) Stock
Datadog, Inc. Class A Common Stock (DDOG) is a US-listed stock operating in the Technology sector, specifically the Services-Prepackaged Software industry. As of the latest update, Datadog, Inc. Class A Common Stock is trading at $247.11, down 7.19% on the day with a market capitalization of $88.7 billion. The financial health score for DDOG is 93/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for DDOG stock.
DDOG Stock Analysis & Key Metrics
On PreMarketPrice, you can track Datadog, Inc. Class A Common Stock (DDOG) across multiple dimensions:
- Pre-market price & movement: Real-time DDOG stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for DDOG with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Datadog, Inc. Class A Common Stock across multiple reporting periods.
- Financial health score: A composite score of 93/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for DDOG.
- Sector peers: Compare DDOG against 6 other technology stocks on key financial metrics.
Is DDOG a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Datadog, Inc. Class A Common Stock (DDOG) as an investment. The financial health score of 93/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Datadog, Inc. Class A Common Stock (DDOG) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.