Datadog Inc (DDOG) stock analysis
Datadog Inc (DDOG) clears 2 of this site's 8 mechanical value filters, 1 of 8 Buffett-style checks and 2 of 5 Lynch-style checks. At $257.75 it trades 406.0% above this site's neutral DCF value (a margin of safety of -406.0%). Its earnings quality rates Mixed and it returns −0.8% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Datadog do?
Datadog sells cloud monitoring and security software that shows companies how their applications, servers and cloud systems are performing, on subscription.
What stands out about Datadog?
- The share price implies more than 40% yearly growth. At $257.75, free cash flow per share would have to grow faster than 40% a year, fading to 2.5% by year 10, for this site's DCF to match the price. Change the assumptions.
- Misses 4 of the 8 value filters. It fails Trailing P/E < 25 (521.99), PEG Ratio < 1.5 (27.49) and Price/Book < 8 (21.23) and 1 more; the other 2 pass and 2 were not evaluated. See every filter.
- Weakest against peers: P/E ratio. At 522.0× (peer median 26.0×) it ranks 37th of 39 among technology stocks this site tracks. See the ranking.
- Earnings quality: Mixed · 1 flag, 1 watch. Beneish M-score −2.72 · accruals −15.2% of assets · >500% of profit arrived as cash · stock comp 21.9% of revenue · share count +1.9% a year. From the latest 10-K (year to Dec 2025). See the Earnings Quality Screener.
- Owners are being diluted. Its net shareholder yield is −0.8%: more stock is issued than is bought back or paid out. See Shareholder Yield Leaders.
How has Datadog's share price moved?
The interactive price chart needs JavaScript.
Is Datadog undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -406.0%
- P/E vs. its own history 522.0x · the middle Real range: 278.5x–867.7x over 3 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 4.16/5 55 analysts this month: 15 strong buy, 35 buy, 4 hold, 1 sell, 0 strong sell (Finnhub).
- Altman Z″-Score (bankruptcy risk) 5.11 · Safe zone
- Earnings quality (is the profit real?) Mixed · 1 flag, 1 watch Beneish M-score −2.72 · accruals −15.2% of assets · >500% of profit arrived as cash · stock comp 21.9% of revenue · share count +1.9% a year. From the latest 10-K (year to Dec 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) −0.8% net Latest fiscal year (2025): dividends 0.0% + buybacks 0.0% − stock comp 0.8%, as a share of today's market cap. Stock comp outruns what comes back in cash. Over 5 years its split-adjusted share count rose 21%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) Profit did not grow in 10 years Operating profit −$11M → −$8M, capital needed −$14M → −$44M, 2017–2025 (3-year averages); its capital is negative: customers and suppliers fund it. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 27.5 · Well above fair P/E 522.0× ÷ 19.0% a year of growth behind it. 437th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 0 of 4 · misses capital-light, real profit, cash back, price Capital-light growth: not cleared (profit started from a loss); Profit is real: not cleared (1 earnings-quality flag); Cash to owners: not cleared (−0.6% a year net); Fair price (PEG): not cleared (PEG 27.5, over 1.5). See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 3 flags
- Standing vs. sector peers 2 of 6 measures above the median Compared with the 43 other technology stocks this site tracks: 2 in the top third, 4 in the bottom third.
How does Datadog compare with its peers?
2 of 6 measures sit above the median of the 43 other technology stocks tracked here, 2 in the top third and 4 in the bottom third.
- P/E ratiolower is cheaper · peer median 26.0× 522.0× ✕37th of 39
- Free-cash-flow yieldhigher is cheaper · peer median 3.8% 1.2% ✕40th of 44
- Return on equityhigher is better · peer median 24% 5% ✕36th of 44
- Net marginhigher is better · peer median 16.9% 4.5% ✕36th of 44
- Revenue growthhigher is better, year on year · peer median 19.1% 31.5% ✓11th of 44
- Debt / equitylower is safer · peer median 0.60 0.23 ✓9th of 44
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and DDOG doesn't clear enough of it yet. In its favor: DDOG carries a conservative amount of debt relative to equity. Where it comes up short: DDOG isn't clearing the return-on-equity bar he'd want to see right now, and its five-year average return on equity falls short too, so this isn't just a one-off dip, runs thinner pretax margins than he'd like to see, hasn't grown earnings per share fast enough over five years to impress him, doesn't cover its interest expense as comfortably as he'd want, is trading above what a conservative discounted-cash-flow estimate says it's worth right now, and trades rich relative to owner earnings, the real cash the business could pay out.
- ROE (TTM) > 11% ✕
- ROE (5yr avg) > 11% ✕
- Debt/Equity < 0.5 ✓
- Pretax margin > 15% ✕
- EPS growth (5yr) > 7% ✕
- Interest coverage > 5x ✕
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✕
Lynch looked for growth stories that weren't overpriced for that growth, and DDOG falls short of his bar. In its favor: DDOG is growing earnings 20-50% a year, his classic fast-grower zone, and isn't leaning on debt to fund that growth. Where it comes up short: DDOG doesn't clear the tighter PEG bar a fast grower needs to justify its pace, is priced above what he'd pay even for a company growing this quickly, and isn't generating enough free cash flow to justify a fast grower's richer price.
- PEG < 1 (stricter for fast growers) ✕
- EPS growth 20%-50% ✓
- Debt/Equity < 0.5 ✓
- P/E < 40 ✕
- Price/FCF < 40 ✕
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Datadog pass?
- Market Cap > $25B $92.7B
- Trailing P/E < 25 521.99
- PEG Ratio < 1.5 27.49
- Price/Book < 8 21.23
- Price/Sales < 7 23.37
- EPS Growth YoY > -5% +1523.0%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Datadog's margin of safety?
-444% on 2026-10-07 → -406% on 2026-10-23 (5 weekly readings).
Where is Datadog in its 52-week range?
What is the short interest in Datadog?
9,494,166 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Datadog? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case -199%
- Short interest under 5% of float 2.9%
- Passes most of the 6 fundamental filters 2/6 passed
- Price run-up backed by value, not just momentum +154% off 52wk low
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Datadog shareholders gained per year?
Not enough clean earnings history to compute this for DDOG yet - a loss year in the window breaks the growth math rather than faking a number through it.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from DDOG's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Datadog's 10-year financials show?
From DDOG's own 10-K filings (SEC EDGAR): up to the last 9 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Datadog
What kind of company is Datadog?
Datadog sells cloud monitoring and security software that shows companies how their applications, servers and cloud systems are performing, on subscription. This site groups it with Technology stocks.
Is Datadog trading above or below its DCF value?
At $257.75, DDOG trades 406.0% above this site's neutral DCF value of $50.94 per share, a margin of safety of −406.0%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Datadog pass?
DDOG passes 2 of 8. It passes Market Cap > $25B ($92.7B) and EPS Growth YoY > -5% (+1523.0%). It misses Trailing P/E < 25 (521.99), PEG Ratio < 1.5 (27.49), Price/Book < 8 (21.23) and Price/Sales < 7 (23.37). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
Are Datadog's reported earnings reliable?
This site's earnings-quality check rates DDOG Mixed · 1 flag, 1 watch. Beneish M-score −2.72 · accruals −15.2% of assets · >500% of profit arrived as cash · stock comp 21.9% of revenue · share count +1.9% a year. From the latest 10-K (year to Dec 2025). Concerns: stock-based compensation (flagged) and share dilution (on watch). The five checks are the Beneish M-score (manipulation risk), accruals, cash conversion, stock-based compensation and share dilution; the Earnings Quality Screener shows how each is graded.
How fast has Datadog grown its revenue and profit?
From fiscal 2017 to fiscal 2025, DDOG's revenue grew from $101 million to $3.4 billion, 55.4% a year. Net income went from −$3.0 million to $108 million, and its net profit margin from -3.0% to 3.2%. In fiscal 2025 it produced $1.0 billion of free cash flow (cash from operations minus capital spending), 29.2% of its revenue. All figures are from DDOG's own 10-K filings (SEC EDGAR) and are shown year by year in the 10-Year Financials section of the card above.
When does Datadog report earnings next?
Datadog's next earnings report is expected on November 4, 2026 before the market opens, with analysts expecting earnings of $0.67 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 4 times, by an average of +10.5%.
Where do these numbers come from?
- Financial statements: Datadog's 10-K annual report for the year ended Dec 31, 2025, filed Feb 18, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Datadog Inc analysis
This page shows every value-investing check the site runs on Datadog Inc (DDOG) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.