Datadog, Inc (DDOG) Fair Value & Analysis
Technology · US · Market cap $92.6B
Datadog, Inc
DDOG · US
Fair value as of: Aug 13, 2026
From 23 valuation models · updated yesterday
Share price −6.8% over the past month.
A solid business, but screening 97% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case ($7.24). The favourable scenario is already priced in.
- Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range $62.69 – $288.15 · the $252.24 price screens above the $7.24 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Datadog, Inc (DDOG) currently trades at $252.24, while our model-based Fair Value estimate is $7.24, implying the stock looks roughly 97.1% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Datadog, Inc generated revenue of $3.7B at a net margin of 3.7%. Revenue grew 32.2% year over year. It earns a return on equity of 3.9%. Net debt stands at $1.1B. Fundamentals as of Aug 13, 2026
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 9% below its 52-week high and 157% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -40% fair-value upside, at -97%, DDOG screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 23 models by family
Widest divergence: Growth DCF ($68.56) versus Dividend Discount ($0.2000). Highest evidence: Growth DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 60 · Market factors (momentum, volatility) 68
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally.
Full company description
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. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Datadog, Inc reported revenue of $3.4B in FY2025 versus $1.0B in FY2021, a compound +35.1%/yr. Reported net income was $108M in FY2025.
DDOG screens 97% overvalued. Compare with SAP SE →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Datadog's CEO Sellls Over 127,000 Shares for $36.5 Million. Here's a Closer Look at the Transaction.
- Is DDOG Stock Worth Investing in After Q2 Beat & Solid '26 Guidance?
- Evaluating Datadog’s Reincorporation Proposal and Governance Roadmap
- DDOG Q2 Deep Dive: Market Reacts Negatively Despite Accelerating Core Growth and AI Momentum
Peer Group
Software - Application · 713 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Software - Application median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| SAP SE SAPS | C$12.46 | C$16.26 | +30% |
| Shopify Inc SHOP | C$209.78 | C$28.76 | -86% |
| Uber Technologies, Inc UBER | $75.36 | $43.66 | -42% |
| Salesforce, Inc CRM | $193.32 | $249.28 | +29% |
| ServiceNow, Inc NOW | $124.94 | $43.73 | -65% |
| Cadence Design Systems, Inc CDNS | $323.13 | $112.57 | -65% |
| Beijing Kingsoft Office Software, Inc 688111 | ¥254.50 | ¥81.23 | -68% |
| Tata Elxsi Limited TATAELXSI | ₹3,712 | ₹2,519 | -32% |
| Douzone Bizon Co 012510 | 120,000 KRW | 92,181 KRW | -23% |
| KFin Technologies Limited KFINTECH | ₹922.00 | ₹556.85 | -40% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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