Latest Ratios: P/E Ratio 838.3x · EV/EBITDA 7964.0x · ROE 3.3%. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $89.5B | $49.4B | $51.2B | $42.5B | $23.2B | $55.0B | $29.6B | $5.3B | — | — |
| Enterprise Value | $90.7B | $50.6B | $51.8B | $43.1B | $23.7B | $55.6B | $30.0B | $4.7B | — | — |
| P/E Ratio → | 838.30 | 453.30 | 280.18 | 867.00 | — | — | — | — | — | — |
| P/S Ratio | 26.12 | 14.42 | 19.09 | 19.98 | 13.84 | 53.50 | 48.99 | 14.57 | — | — |
| P/B Ratio | 24.49 | 13.24 | 18.88 | 20.99 | 16.44 | 52.87 | 30.88 | 6.75 | — | — |
| P/FCF | 89.47 | 49.40 | 61.31 | 67.24 | 65.58 | 219.72 | 355.33 | 6680.66 | — | — |
| P/OCF | 85.25 | 47.07 | 58.86 | 64.43 | 55.41 | 192.10 | 271.03 | 218.06 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 14.75 | 19.31 | 20.25 | 14.14 | 54.03 | 49.69 | 13.09 | — | — |
| EV / EBITDA | 7964.01 | 4441.91 | 474.66 | 3916.96 | — | 14696.27 | 17880.23 | — | — | — |
| EV / EBIT | — | 366.18 | 245.68 | 647.62 | — | 21133.58 | 3651.38 | — | — | — |
| EV / FCF | — | 50.53 | 62.02 | 68.14 | 66.99 | 221.86 | 360.36 | 6001.94 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 80.0% | 80.0% | 80.8% | 80.7% | 79.3% | 77.2% | 78.4% | 75.5% | 76.5% | 76.8% |
| Operating Margin | -1.3% | -1.3% | 2.0% | -1.6% | -3.5% | -1.9% | -2.3% | -5.6% | -5.6% | -2.9% |
| Net Profit Margin | 3.1% | 3.1% | 6.8% | 2.3% | -3.0% | -2.0% | -4.1% | -4.6% | -5.4% | -2.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.3% | 3.3% | 7.8% | 2.8% | -4.1% | -2.1% | -2.8% | -4.7% | — | — |
| ROA | 1.7% | 1.7% | 3.8% | 1.4% | -1.9% | -1.0% | -1.7% | -2.7% | -7.0% | -2.0% |
| ROIC | -0.8% | -0.8% | 1.4% | -1.1% | -2.5% | -1.0% | -1.3% | -26.1% | — | — |
| ROCE | -1.0% | -1.0% | 1.6% | -1.3% | -2.9% | -1.1% | -1.1% | -4.4% | -16.1% | -4.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.41 | 0.41 | 0.68 | 0.45 | 0.59 | 0.78 | 0.67 | 0.08 | — | — |
| Debt / EBITDA | 134.87 | 134.87 | 16.87 | 82.02 | — | 213.58 | 383.79 | — | — | — |
| Net Debt / Equity | — | 0.30 | 0.22 | 0.28 | 0.35 | 0.52 | 0.44 | -0.69 | — | — |
| Net Debt / EBITDA | 99.61 | 99.61 | 5.45 | 52.00 | — | 141.93 | 249.67 | — | — | — |
| Debt / FCF | — | 1.13 | 0.71 | 0.90 | 1.41 | 2.14 | 5.03 | -678.72 | — | -9.96 |
| Interest Coverage | 12.49 | 12.49 | 29.85 | 10.56 | -1.30 | 0.12 | 0.27 | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.38 | 3.38 | 2.64 | 3.17 | 3.09 | 3.54 | 5.77 | 4.51 | 1.09 | 1.75 |
| Quick Ratio | 3.38 | 3.38 | 2.64 | 3.17 | 3.09 | 3.54 | 5.77 | 4.51 | 1.09 | 1.75 |
| Cash Ratio | 2.81 | 2.81 | 2.25 | 2.58 | 2.48 | 2.94 | 5.09 | 3.87 | 0.48 | 1.05 |
| Asset Turnover | — | 0.52 | 0.46 | 0.54 | 0.56 | 0.43 | 0.32 | 0.35 | 1.10 | 0.79 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 78.95 | 81.44 | 87.34 | 87.06 | 95.38 | 103.55 | 105.61 | 103.83 | 119.01 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.1% | 0.2% | 0.4% | 0.1% | — | — | — | — | — | — |
| FCF Yield | 1.1% | 2.0% | 1.6% | 1.5% | 1.5% | 0.5% | 0.3% | 0.0% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $363M | $359M | $350M | $315M | $309M | $300M | $140M | $71M | $80M |
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying DDOG stock.
Datadog, Inc.'s current P/E ratio is 838.3x. This places it at the 50th percentile of its historical range.
Datadog, Inc.'s current EV/EBITDA is 7964.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Datadog, Inc.'s return on equity (ROE) is 3.3%. The historical average is 0.0%.
Based on historical data, Datadog, Inc. is trading at a P/E of 838.3x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Datadog, Inc. has 80.0% gross margin and -1.3% operating margin.
Datadog, Inc.'s Debt/EBITDA ratio is 134.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
SBC masking true profitability
Metrics are mathematically derived from official filings.
Premium Pricing for AI-Led Acceleration
According to the latest quarterly data, DDOG trades at 851x trailing earnings and 104x forward earnings, implying the market expects sustained hyper-growth despite a 27.7% TTM revenue growth rate.
The forward P/E of 104.64 suggests investors are pricing in a significant acceleration in earnings, likely driven by AI-related workloads. However, the EV/EBITDA of 8088x is distorted by near-zero EBITDA, making P/S of 26.53 a more reliable gauge. Compared to Dynatrace's 91x P/E, DDOG's premium appears justified only if growth reaccelerates as seen in the recent 35.6% YoY quarter.
Margin Inflection Points to Operating Leverage
Gross margin held near 80% in 2026Q2, while operating margin turned positive at 0.5% from -4.1% a year earlier, per the latest financial statements, signaling a strategic shift toward profitability.
The improvement in operating margin from -4.1% to 0.5% over four quarters suggests that the heavy investment phase is maturing. Net margin of 4.0% remains thin, but the trend is upward. The gap between gross and operating margins highlights the ongoing reinvestment in R&D and S&M, which consumed 78% of revenue in 2026Q2. Investors should monitor whether this operating leverage continues as growth normalizes.
Returns on Capital Remain Subdued
ROIC hovered near zero, at 0.1% in 2026Q2, and ROE at 1.1%, per the latest quarterly report, indicating that the company is still in a value-creation ramp-up phase.
Despite strong revenue growth, returns on invested capital are minimal because the company is reinvesting heavily in growth. The low ROIC is typical for hyper-growth SaaS, but it also means that capital efficiency is not yet a driver of shareholder value. As growth decelerates, ROIC should improve if margins expand, but the current sub-1% ROIC suggests that the market is paying for future potential rather than current returns.
Working Capital Efficiency Improves
DSO improved to 61 days in 2026Q2 from 71 days in 2024Q1, while DPO rose to 93 days, per the latest financial data, indicating better collections and extended supplier terms.
The improvement in DSO suggests more efficient billing and collections, while the increase in DPO indicates the company is leveraging its scale to negotiate better payment terms. The cash conversion cycle is not calculable due to missing DIO, but the trend in DSO and DPO points to enhanced working capital management. This efficiency contributes to the robust free cash flow margin of 24.9%.
Conservative Leverage with Ample Coverage
Debt-to-equity fell to 0.29 in 2026Q2 from 0.41 a year earlier, and interest coverage improved to 16.9x, per the latest balance sheet, indicating a comfortable debt position.
The decline in leverage, despite a rise in total debt to $1.3B, reflects the rapid equity build-up from retained earnings turning positive. Interest coverage of 16.9x suggests that debt service is not a concern. However, the D/EBITDA ratio of 23.24 is elevated due to low EBITDA, but this is not alarming given the asset-light model and strong cash generation. The balance sheet appears well-positioned to support future growth initiatives.
Liquidity Buffer Remains Strong
Current ratio improved to 3.20 in 2026Q2 from 2.64 a year ago, with cash at $435M, per the latest balance sheet, providing a solid cushion against short-term obligations.
The current ratio of 3.20 indicates that current assets comfortably cover current liabilities, and the quick ratio is identical, suggesting no inventory dependence. This liquidity buffer is typical for a SaaS company with high recurring revenue. Under severe stress, the company could likely sustain operations for several quarters without external funding, given its strong cash flow generation.
Premium vs. Peers Justified by Growth
DDOG's P/E of 851x far exceeds Dynatrace's 91x and Elastic's 25x, but its 27.7% revenue growth outpaces both, per the latest peer data, suggesting the premium reflects superior momentum.
The valuation gap is substantial, but DDOG's growth rate is higher than both peers, and its gross margin of ~80% is comparable. However, DDOG's ROIC of 0.1% is far below Dynatrace's 11.8%, indicating that peers are more efficient at generating returns on invested capital. This suggests that DDOG's premium is based on growth expectations rather than current profitability, and any growth deceleration could compress the multiple.
Misapplied Metric: EV/EBITDA
EV/EBITDA is often cited for DDOG, but with EBITDA near zero, the ratio is meaningless; instead, P/S or EV/Sales should be used, as per the latest financial data.
The EV/EBITDA of 8088x is distorted by negligible EBITDA, making it an unreliable valuation metric for this company. Investors should focus on EV/Sales or P/FCF, which are more meaningful given the company's strong cash generation. The P/FCF of 90.88 indicates that the market is paying a high price for cash flow, but this is more justifiable than EV/EBITDA. Using EV/EBITDA could lead to erroneous conclusions about overvaluation.