US Equities Analysis

DDOG — Datadog

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 0.8%
Profit Margins 3.69%
Return on Equity 3.93%
Return on Assets -0.22%
Free Float 0.33B
Short Int % Utilisation 4.93%

2.2 Growth

Metric Value
Revenue Growth 32.2%
Free Cash Flow 0.94B
EBITDA 2238.91 (Ratio)
Enterprise Value 77.55B
EV/Revenue 21.12
EV/EBITDA 2238.91

Revenue growth of 32.2% places the company in a high-growth category.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 152.66%
Risk / Std Dev (Ann.)* 68.71%
1-Year Price Return* 100.75%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $255.46
52-Week Range $98.01 – $292.72
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $3.43B
Prior annual revenue $2.68B
EBIT $138.08M
Tax rate 15.18%
NOPAT = EBIT × (1 − tax rate) $117.12M
Forecast start-growth basis 15.00%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $117.12M
Add: depreciation & amortisation $55.76M
Less: capital expenditure -$135.42M
Less/(add): working-capital cash-flow movement $53.49M
Current unlevered FCFF $90.95M

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 15.00% $134.69M $64.12M -$155.73M $61.52M $104.59M $98.47M
2 11.88% $150.68M $71.73M -$148.60M $68.82M $142.64M $119.01M
3 8.75% $163.87M $78.01M -$133.74M $74.84M $182.98M $135.30M
4 5.62% $173.09M $82.40M -$111.83M $79.05M $222.71M $145.94M
5 2.50% $177.41M $84.46M -$84.46M $81.03M $258.44M $150.09M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.51
Cost of equity 13.01%
Pre-tax cost of debt 0.71%
WACC 12.84%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $2.56B
Implied terminal EV / EBITDA 8.73x
Terminal value as % of enterprise value 68.35%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $648.81M
Present value of terminal value $1.40B
Indicated enterprise value $2.05B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $2.05B
Less: gross interest-bearing debt $1.28B
Add: cash and equivalents $4.47B
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $5.25B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 363,471,000.00
Share-count basis reported diluted weighted-average shares
Current market price $247.08
DCF indicative value per share $14.43
Indicative value vs. market price -94.16%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 3/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:29:35.077824 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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