Datadog, Inc. (DDOG) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Software - Application
Is Datadog, Inc. a safe investment right now?
Datadog, Inc.'s Altman Z-Score of 10.93 places it in the safe zone. Our fair value estimate is $42.00 (Overvalued). Moat rating: 2.6/5 stars.
Could Datadog, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 10.93 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives DDOG's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.5706 | 1.2 | 0.68 |
| B · Retained Earnings / Total Assets | RE / TA | 0.0207 | 1.4 | 0.03 |
| C · EBIT / Total Assets | EBIT / TA | 0.0208 | 3.3 | 0.07 |
| D · Market Cap / Total Liabilities | MCap / TL | 16.059 | 0.6 | 9.64 |
| E · Revenue / Total Assets | Rev / TA | 0.5158 | 1.0 | 0.52 |
How has DDOG's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 18.67 | Safe |
| 2023 | 15.89 | Safe |
| 2024 | 10.36 | Safe |
| 2025 | 10.93 | Safe |
Source: Calculated from DDOG's latest 10-K filing on SEC EDGAR.
What is Datadog, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $1.05 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $0.31 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $2.15 | 45 analysts consensus |
| Trailing P/E | 440.5x | Current market pricing |
| Fair P/E (β discount) | 40.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $178.39 (45 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Datadog, Inc. have a durable competitive advantage?
Moat rating: 2.6/5.
What makes up DDOG's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is DDOG's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | -1.0% | — |
| 2023 | 2.4% | Rising |
| 2024 | 4.9% | Rising |
| 2025 | 2.9% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is Datadog, Inc.'s dividend safe?
Datadog, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $3.4B | $2.7B | $1.7B | Rising |
| Net Income | $0.1B | $0.2B | −$0.1B | Rising |
| Free Cash Flow | $0.9B | $0.8B | $0.4B | Rising |
| Gross Margin | 80.0% | 80.8% | 79.3% | Stable |
Recent events that affect our DDOG analysis
DDOG earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.51. Revenue estimate: $959.8M. Our current Fair Value: $42.00 — a significant beat or miss could shift this estimate.
DDOG analyst consensus: 92% bullish (44 of 48 analysts)
10 Strong Buy, 34 Buy, 3 Hold, 1 Sell, 0 Strong Sell. Consensus target: $178.39 (35.0% upside). Compare with our independent Fair Value: $42.00.
DDOG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DDOG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DDOG filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
DDOG beat EPS estimates by 6.3%
Reported EPS: $0.59 vs estimate $0.55. Earnings strength supports our Fair Value of $42.00 (68.2% below current price).
DDOG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DDOG filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DDOG beat EPS estimates by 260.8%
Reported EPS: $0.10 vs estimate $0.03. Earnings strength supports our Fair Value of $42.00 (68.2% below current price).
DDOG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DDOG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DDOG filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DDOG beat EPS estimates by 12.8%
Reported EPS: $0.46 vs estimate $0.41. Earnings strength supports our Fair Value of $42.00 (68.2% below current price).
DDOG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DDOG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DDOG filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DDOG beat EPS estimates by 8.4%
Reported EPS: $0.46 vs estimate $0.42. Earnings strength supports our Fair Value of $42.00 (68.2% below current price).
DDOG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DDOG filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
DDOG beat EPS estimates by 27.9%
Reported EPS: $0.13 vs estimate $0.10. Earnings strength supports our Fair Value of $42.00 (68.2% below current price).
DDOG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Datadog, Inc.
What is Datadog, Inc. stock price today?
Datadog, Inc. (DDOG) stock price is $132.14 as of the latest market close, traded on the NASDAQ exchange.
What does Datadog, Inc. do?
Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally. The company's products comprise infrastructure and application performance monitoring, log management, observability pipelines, synthetics, real user monitoring, product analytics, continuous profiler, database monitoring, data observability, LLM observability, error tracking, network monitoring, incident response, workflow automation and App builder, event management, bits AI SRE, cloud cost management, cloud security, code security, cloud SIEM, threat management, sensitive data scanner, and CI visibility.
What is Datadog, Inc. market cap?
Datadog, Inc. has a market capitalization of $46.76B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is DDOG in?
Datadog, Inc. operates in the Technology sector, specifically within the Software - Application industry. It trades on the NASDAQ under the ticker symbol DDOG.
Is DDOG stock overvalued or undervalued?
Based on our valuation model, Datadog, Inc. trades 214.6% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $42.00
- Current Price: $132.14
- Valuation Zone: Overvalued
What is DDOG stock forecast and analyst target price?
Based on 45 Wall Street analysts, the consensus price target for Datadog, Inc. is $178.39, implying upside of 35.0% from the current price.
- Analyst High Target: $260.00
- Analyst Low Target: $120.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Datadog, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Datadog, Inc.:
- Revenue growth (current year est.): 20.2%
- EPS growth (current year est.): 5.0%
- Revenue growth (next year est.): 19.6%
- EPS growth (next year est.): 22.5%
What are Datadog, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $3.4B | Rising |
| Net Income | $0.1B | Rising |
| Free Cash Flow | $0.9B | Rising |
| Gross Margin | 80.0% | Stable |
What is DDOG's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 440.5x
- Forward P/E (next 12 months est.): 50.2x
- FairValueLabs Fair P/E: 40.0x
How volatile is DDOG stock?
Datadog, Inc. has a beta of 1.29, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Datadog, Inc. have?
Datadog, Inc.'s balance sheet shows:
- Total Cash: $4.47B
- Total Debt: $1.28B
- Net Cash Position: $3.20B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Datadog, Inc.'s free cash flow?
Datadog, Inc. generated $879.6M in trailing twelve-month free cash flow (from $1.05B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Datadog, Inc. pay a dividend?
Datadog, Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Datadog, Inc. at risk of going bankrupt?
Datadog, Inc.'s Altman Z-Score is 10.93, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Datadog, Inc. have a durable competitive advantage?
Datadog, Inc. scores 2.6/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is DDOG's return on equity (ROE)?
Datadog, Inc.'s return on equity is 3.3%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy DDOG stock?
DDOG shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol DDOG
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is DDOG a value stock or speculative?
FairValueLabs classifies Datadog, Inc. as Pure Speculation. It lacks the financial stability or valuation margin typically required for value investing. This stock is considered high risk.
Who is the CEO of Datadog, Inc.?
The current CEO of Datadog, Inc. is Mr. Olivier Pomel.
What is DDOG's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $0.30
- Forward EPS (next 12 months est.): $2.63
- Analyst consensus EPS (this year): $2.15
- Analyst consensus EPS (next year): $2.64
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
DDOG analysis methodology: How we calculate fair value, Z-Scores, and moat ratings