D/E 0.32 — near the Technology debt median (≈60th pctile)
P/S23.6xD
P/S 23.6x — most expensive decile in Technology (≈95th pctile)
PEG1.77C+
PEG 1.77 — modest premium; above fair value
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 50.9
Quality0.43
Growth1.00
Value0.31
Entry · Margin of safety
52-week rangeNear 52-week high
11% off the 12-month high
vs DCF fair value457% aboveest. fair value ~$47
What the price assumes: free cash flow compounding at ~60% a year for the next decade — vs the ~17% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability42% · A-gross profit ÷ total assets (Novy-Marx)
ROIC0.3% · Creturn on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
Software - Application · market cap $93.6b. 11% off the 52-week high of $292.72. Revenue growing +32% — in hypergrowth territory. 46 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $276.07 (implying +6% upside).
Moat
Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $93.6b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition. Software economics — recurring revenue, embedded customer workflows, and high gross margin all compound the moat once a base account is won. Switching costs are the lever.
Risk
Beta 1.51 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 23.6x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard. Net margin 4.5% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Horizon
1-3 yr $276.07 (46-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $482.85 — requires the platform / technology to reach commercial scale. 10 yr $862.95 — return distribution heavily skewed.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
DDOG vs the Top Picks average
Pillar
DDOG
Book avg
Diff
Quality
0.43
0.83
-0.40
Growth
1.00
0.92
+0.08
Value
0.31
0.75
-0.44
Averaged across the 30 names in today's Top Picks (mean score 82.4). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · DDOG
Trend
-4.9 over 37 daily scores
From 55.8 (Jun 22) → 50.9 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · DDOG
$
%
%
Shares to buy
7
Position size
$1,825
3.7% of portfolio
Stop price
$195.58
25% below $260.78
$ at risk if stopped
$456.36
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Datadog, Inc. (DDOG): score, valuation & FAQ
Datadog, Inc. (DDOG) is a Software - Application company that scores 50.9 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A), while P/S (D) rate weaker. On valuation, DDOG sits about 457% above our discounted-cash-flow fair value — the current price implies roughly 60% annual free-cash-flow growth over the next decade.
Is DDOG a good stock to buy?
Bull Rankings scores DDOG 50.9 out of 100 on its quality-growth model, which is a middling reading. That is driven by Rev (A). A score is a quantitative screen of Datadog, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does DDOG score 50.9 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). DDOG earns its highest marks on Rev (A), and is held back by P/S (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is DDOG overvalued or undervalued?
Based on $260.78, DDOG sits about 457% above our discounted-cash-flow fair value — the current price implies roughly 60% annual free-cash-flow growth over the next decade. Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in DDOG?
Beta 1.51 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 23.6x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard. Net margin 4.5% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.