DDOG · Research
Datadog's 81% Gross Margin Still Can't Close the Gap to Its Price
Datadog (DDOG) earns a "Watch" rating and an institutional Quality Score of 72/100 (Grade B+). On $2.68B in baseline revenue (26.6% growth, 80.8% gross margin, 31.1% FCF margin), our 5-year DCF yields an Enterprise Value of $29.56B ($80.75/share vs. $128.40 market price).
Datadog (DDOG) earns a "Watch" rating and an institutional Quality Score of 72/100 (Grade B+). On $2.68B in baseline revenue (26.6% growth, 80.8% gross margin, 31.1% FCF margin), our 5-year DCF yields an Enterprise Value of $29.56B ($80.75/share vs. $128.40 market price).
On the R&D Return Benchmark, DDOG ranks #79 of 166 (Compounders · Grade BB, 0.50× return).
Key rating factors
- TTM revenue
- $2.68B
- R&D % of spend
- 45.2%
- Rule of 40
- 57.7%
- R&D return
- 0.5x