Is Dynatrace, Inc. (DT) Fairly Valued?
Dynatrace, Inc. valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of June 24, 2026.
By TGMCharts Research / 5 min read / Data as of / Updated
Valuation read
Dynatrace, Inc. does not get a one-metric verdict. The stock trades at 75.44x trailing earnings and the TGMCharts fair-value model is $53.34, so the valuation read depends on whether growth and margins support that price.
The core evidence is the relationship between price, earnings, fair value, and business support. Five-year revenue CAGR is 23.47%, five-year EPS CAGR is 14.87%, and net margin is 8.06%. Those facts decide whether the multiple is defensible or stretched.
What to watch
- A material move away from the fair-value anchor of $53.34.
- A break in five-year EPS support, currently 14.87%.
- Margin quality drifting away from the latest net margin of 8.06%.
From the latest filing
10-K · filed 2026-05-20 · period 2026-03-31 · SEC EDGAR source
- “Our annual revenue grew 19%, 19%, and 23% in the years ended March 31, 2026, 2025, and 2024, r espectively, compared to the prior year.”
- “We have experienced rapid revenue growth in recent periods.”
- “This revenue growth may not be indicative of our future revenue growth, and we may not be able to sustain revenue growth consistent with recent history, or at all.”
- “If we are unable to achieve any of these, our revenue growth could be adversely affected.”
Key takeaways
- -Dynatrace, Inc. closed at $40.61 on June 24, 2026.
- -Trailing P/E is 75.44x and price-to-sales is 6.01x.
- -Model fair value is $53.34 with margin of safety at 31.35%.
- -Five-year revenue CAGR is 23.47% and five-year EPS CAGR is 14.87%.
- -Earnings yield is 1.33% and net margin is 8.06%.
Valuation snapshot
The market price, model anchor, growth support, and profitability facts behind the valuation read.
Executive Summary
Dynatrace, Inc. should be read as a valuation question with a specific burden of proof: does the market price have enough earnings, growth, and margin support to justify the multiple? The stock closed at $40.61 on June 24, 2026, trades at 75.44x trailing earnings, and carries a TGMCharts model margin of safety of 31.35%. Because the market price sits below the model fair value of $53.34, the equity is technically undervalued according to our baseline valuation framework. However, a complete fundamental assessment requires looking past single-point estimates to examine the underlying financial trends.
The answer cannot come from one ratio. This note treats P/E, fair value, price-to-sales, earnings yield, revenue growth, EPS growth, and margin quality as a linked evidence set. While trailing free cash flow has risen, trailing net income and earnings per share have declined. This divergence between cash generation and GAAP profitability means that the valuation read must remain balanced. If top-line expansion and cash conversion reinforce each other, the current multiple can be defended; if GAAP earnings continue to lag, the valuation thesis faces structural headwinds.
Price And Multiple Context
The price and multiple section asks what the market is paying before judging whether that price is justified. Price-to-sales is 6.01x and earnings yield is 1.33%, so the first chart group keeps the market price, P/E history, and sales multiple in the same frame rather than treating the headline P/E as the whole story. Paying a high multiple of sales requires high structural profitability to convert those revenues into owner earnings over time.
Supporting exhibit 2
Exhibit: DT price history
The price chart shows whether the valuation question is being driven by recent share-price movement.
Latest close: $40.61 as of June 24, 2026.
DT Price Chart
The close at $40.61 is the market anchor for this note. The fair-value model sits at $53.34, so the price chart helps separate a business-quality question from a market-entry-price question.
Primary exhibit
Exhibit: DT P/E ratio history
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 75.44x as of June 24, 2026.
DT DT P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
A P/E ratio of 75.44x has to be judged against the company's five-year EPS CAGR of 14.87%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
Supporting exhibit 3
Exhibit: DT price-to-sales history
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 6.01x.
DT DT price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Price-to-sales at 6.01x is most useful beside net margin of 8.06%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Fair Value And Margin Of Safety
The fair-value section is the explicit counterweight to the market multiple. The stored model fair value is $53.34 and the margin of safety is 31.35%. This positive margin of safety indicates that the stock is undervalued relative to its long-term cash flow potential. However, this discount to fair value is only as reliable as the growth and margin assumptions supporting the model. If the core business metrics deteriorate, the fair-value anchor will adjust downward.
Valuation evidence table
A compact cross-check of price, model value, growth, and profitability support.
Counterpoint exhibit 4
Exhibit: DT earnings yield history
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 1.33%.
DT DT earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
The earnings yield of 1.33% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Growth Support
Growth support has to show up in both the top line and the per-share outcome. Five-year revenue CAGR is 23.47% and five-year EPS CAGR is 14.87%. The revenue and EPS exhibits sit here because this is where the valuation note decides whether the multiple is being supported by actual business expansion or mainly by investor willingness to pay more. While long-term historical growth has been positive, the recent contraction in trailing EPS and net income presents a near-term risk that contrasts with the rising free cash flow trend.
Supporting exhibit 5
Exhibit: DT revenue history
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 23.47%.
DT revenue
Revenue history tests whether the valuation is being supported by real business expansion.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 23.47% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
Supporting exhibit 6
Exhibit: DT EPS history
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: 14.87%.
DT EPS
EPS history checks whether reported earnings are keeping pace with the market multiple.
A five-year EPS CAGR of 14.87% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Margin Quality
Margin quality is the bridge between sales growth and earnings value. Net margin is 8.06% and price-to-sales is 6.01x, so this section reads profitability beside the sales multiple. A richer sales multiple is easier to defend when profitability is durable. If margins are under pressure, as indicated by the recent decline in trailing net income, the valuation read should leave room for multiple compression even when the long-term historical record looks strong.
Supporting exhibit 7
Exhibit: DT net margin history
Net margin shows whether the company has enough profitability quality to support its valuation.
Latest net margin: 8.06%.
DT net margin
Net margin shows whether the company has enough profitability quality to support its valuation.
Net margin of 8.06% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
Bull/Bear Valuation Case
The bull case is that revenue growth, EPS growth, and margin quality continue to support the current multiple. The bear case is that the P/E ratio and fair-value gap ask too much of the business if growth slows or margins normalize. Keeping both cases visible prevents the valuation note from becoming either a price chart recap or a model-output recap.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 23.47% and five-year EPS CAGR of 14.87% support the business case.
- Net margin of 8.06% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 75.44x can become demanding if EPS growth slows.
- The model margin of safety at 31.35% should change the valuation read if it deteriorates after refresh.
What Would Change The View
The valuation read should change if the fair-value model moves, if the latest close moves materially away from $53.34, or if revenue and EPS growth break from the stored trend. The daily precompute is the source of truth for that refresh, and the published article should be held back or marked stale before the claim ledger drifts away from current fundamentals. A continued divergence between rising free cash flow and falling net income would also warrant a reassessment of the company's earnings quality.
Final Research Read
The final read is that Dynatrace, Inc. needs valuation support from more than one place: the market multiple, the fair-value model, growth, and margin quality all have to keep pointing in the same direction. This research insight is generated from precomputed TGMCharts fundamentals, internal chart routes, and resolved stat tokens. It is general research context only, not personalized investment advice or a buy or sell call.
Research trail
Continue through the source pages behind this research note.
FAQ
Is DT fairly valued?
Dynatrace, Inc. trades at 75.44x trailing earnings with a model margin of safety of 31.35%. The cleanest read comes from comparing that valuation to five-year revenue CAGR of 23.47% and five-year EPS CAGR of 14.87%.
What valuation metric matters most for DT?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this DT valuation view refresh?
The article should refresh after the daily TGMCharts precompute job because the stored close, fair value, and claim ledger are dated to June 24, 2026.
Claim ledger
Every numeric or dated claim in this note was resolved from precomputed TGMCharts data before publishing.
Research snapshot
Extractable thesis
Dynatrace, Inc. does not get a one-metric verdict. The stock trades at 75.44x trailing earnings and the TGMCharts fair-value model is $53.34, so the valuation read depends on whether growth and margins support that price.
Data snapshot: 2026-06-24 / byline: TGMCharts Research / article status: published