Is the price fair?
What DDOG's price assumes
Datadog trades at 460× earnings against 32.3× for the median Software - Application name, more expensive than its own group.
460
Trailing P/E · Software - Application median 32.3 · 14.2× the median: the market pays up for this one
- Price / sales
- 11.7
Price / sales · as of 2026-Q1
- Free cash flow yield
- 1.5%
Free cash flow yield · Software - Application median 6.7%
- Growth the price implies
- +22%
Growth the price implies · The price pays for +22% free cash flow growth a year for a decade; the business has delivered +38% a year over the last three.
Details›
- Price / book2026-Q1
- 10.8
- EV / EBIToperating margin 0.41%: the multiple describes the denominator
- not meaningful
- Technology median P/E376 names
- 37.0
- Software - Application median P/E93 names
- 32.3
- Free cash flow, trailing twelve months
- $1.18B
- Market capitalisation
- $79.4B
- 3-year revenue growth
- +28%
- 3-year free cash flow growth
- +38%
Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.
Software - Application
Ranks #39 of 90 by Smart Score