Datadog, Inc. (DDOG) DCF Valuation
A discounted-cash-flow model values Datadog, Inc. (DDOG) at about $30.03 (TGM base case). Today's price of $227.34 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $227.34, the market is pricing in roughly +32.0%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +58.4%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$227.34
Fair-Value Range
$30.03
Market-Implied Growth
+32.0%/yr
vs +58.4% 5Y actual
DDOG DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $705.6M · 0.36B shares · net debt $877.7M
Estimated Fair Value
$30.03
-86.8% vs $227.34
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $227.34; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $37.92 | $39.99 | $42.44 | $45.38 | $48.96 |
| 9.0% | $32.22 | $33.64 | $35.27 | $37.18 | $39.43 |
| 10.0% | $27.88 | $28.89 | $30.03 | $31.34 | $32.84 |
| 11.0% | $24.47 | $25.21 | $26.04 | $26.96 | $28.02 |
| 12.0% | $21.72 | $22.28 | $22.89 | $23.57 | $24.33 |
About Datadog, Inc.
Datadog, Inc. offers a comprehensive cloud-based monitoring and analytics solution, serving the needs of developers, IT operations personnel, and business stakeholders across North America and internationally. This Software-as-a-Service (SaaS) offering skillfully combines and automates several crucial functions, including infrastructure oversight, application performance tracking, log management, and security surveillance, all designed to deliver live, end-to-end visibility into its customers' technology environments. Additionally, the platform extends its capabilities to include user experience monitoring, network performance analytics, robust cloud security measures, specialized observability tools for developers, and efficient incident response management. It also comes equipped with standard features like configurable dashboards, sophisticated analytical tools, collaborative features, and proactive alert systems. The company was founded in 2010 and is based in New York, New York.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- Olivier Pomel