Latest Ratios: P/E Ratio 856.0x · EV/EBITDA 1184.1x · 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 | $91.4B | $49.4B | $51.2B | $42.5B | $23.2B | $55.0B | $29.6B | $5.3B | — | — |
| Enterprise Value | $92.5B | $50.6B | $51.8B | $43.1B | $23.7B | $55.6B | $30.0B | $4.7B | — | — |
| P/E Ratio → | 856.03 | 453.30 | 280.18 | 867.00 | — | — | — | — | — | — |
| P/S Ratio | 26.67 | 14.42 | 19.09 | 19.98 | 13.84 | 53.50 | 48.99 | 14.57 | — | — |
| P/B Ratio | 25.01 | 13.24 | 18.88 | 20.99 | 16.44 | 52.87 | 30.88 | 6.75 | — | — |
| P/FCF | 91.36 | 49.40 | 61.31 | 67.24 | 65.58 | 219.72 | 355.33 | 6680.66 | — | — |
| P/OCF | 87.05 | 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 | 1184.14 | 646.94 | 321.46 | 858.24 | 6015.03 | 14696.27 | 2473.21 | — | — | — |
| 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 | 19.64 | 19.64 | 11.42 | 17.97 | 212.73 | 213.58 | 53.09 | — | — | — |
| Net Debt / Equity | — | 0.30 | 0.22 | 0.28 | 0.35 | 0.52 | 0.44 | -0.69 | — | — |
| Net Debt / EBITDA | 14.51 | 14.51 | 3.69 | 11.39 | 126.63 | 141.93 | 34.53 | — | — | — |
| 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 |
High stock-based compensation dilution
Based on current market data, Datadog trades at a forward P/E of 98.84 and an EV/EBITDA of 152.88, suggesting that investors are pricing in a sustained high-growth trajectory that significantly outpaces the valuation multiples observed in more mature software peers like Dynatrace.
The extreme P/E ratio of 799.23 indicates that current GAAP earnings are not the primary driver of the stock's valuation, as the market focuses heavily on future cash flow potential. This premium valuation warrants caution, as any deceleration in revenue growth could lead to a sharp contraction in multiples given the lack of a meaningful earnings floor.
As reported in financial statements, Datadog's ROIC has struggled to maintain positive territory, fluctuating between -0.7% and 0.8% over the last ten quarters, which suggests that the company is still in a phase of heavy capital deployment rather than efficient capital compounding.
The low return on capital metrics reflect the company's aggressive reinvestment strategy into R&D and market expansion. Investors should monitor whether these returns improve as the platform matures and the need for such high levels of incremental capital expenditure potentially moderates.
According to recent quarterly filings, Datadog's DSO has remained relatively stable, hovering between 60 and 71 days, which indicates a consistent ability to collect on its subscription-based revenue despite the inherent complexities of its consumption-linked billing model.
The asset turnover ratio of 0.15 suggests a capital-intensive infrastructure footprint, which is typical for a cloud-native observability provider. The consistency in collection cycles provides some comfort regarding the quality of the company's revenue, even as it scales its enterprise client base.
Based on the latest quarterly data, Datadog maintains a debt-to-equity ratio of 0.32, which appears conservative compared to broader technology sector averages and suggests that the company is not overly reliant on external debt to fund its ongoing operational requirements.
The interest coverage ratio, while volatile, remains at a level that does not currently pose an immediate threat to solvency. This financial positioning provides management with the flexibility to navigate potential cloud spending downturns without the immediate pressure of significant debt service obligations.
Investors frequently misapply GAAP net margin to evaluate Datadog's profitability, failing to account for the massive non-cash impact of stock-based compensation which, as reported in recent filings, consistently obscures the true cash-generative capacity of the underlying software-as-a-service business model.
A more appropriate metric for this business model is the free cash flow margin, which has remained robust above 30% in recent periods. Relying on GAAP net income in this context may lead to an overly pessimistic view of the company's ability to generate actual cash from its operations.
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Quick answers to the most common questions about buying DDOG stock.
Datadog, Inc.'s current P/E ratio is 856.0x. This places it at the 50th percentile of its historical range.
Datadog, Inc.'s current EV/EBITDA is 1184.1x. 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 856.0x. 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 19.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.