Stock Analysis on Net

Datadog Inc. (NASDAQ:DDOG)

$24.99

Price to FCFE (P/FCFE)

Microsoft Excel

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Free Cash Flow to Equity (FCFE)

Datadog Inc., FCFE calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Net income (loss)
Net noncash charges
Changes in operating assets and liabilities
Net cash provided by operating activities
Purchases of property and equipment
Capitalized software development costs
Proceeds from issuance of convertible senior notes, net of issuance costs
Proceeds from settlement of capped calls related to convertible senior notes
Purchase of capped calls related to convertible senior notes
Repayments of convertible senior notes
Free cash flow to equity (FCFE)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).


Net cash provided by operating activities demonstrates a consistent upward trend throughout the observed period. Free cash flow to equity (FCFE), however, exhibits a more volatile pattern.

Operating Cash Flow
Net cash provided by operating activities increased significantly from US$286,545 thousand in 2021 to US$1,050,135 thousand in 2025. This represents a substantial and sustained improvement in the company’s ability to generate cash from its core business operations. The growth appears to be accelerating, with larger year-over-year increases in later periods.
Free Cash Flow to Equity (FCFE)
FCFE began at US$250,520 thousand in 2021 and rose to US$353,515 thousand in 2022, followed by a further increase to US$597,548 thousand in 2023. A considerable surge is then observed in 2024, reaching US$1,511,056 thousand. However, FCFE experiences a substantial decline in 2025, falling to US$278,980 thousand. This fluctuation suggests potential changes in the company’s financing activities, capital expenditures, or other factors impacting cash flow available to equity holders. The 2025 value, while still positive, is lower than the initial value in 2021.

The divergence between the consistently increasing operating cash flow and the fluctuating FCFE indicates that factors beyond core operations are significantly influencing the cash available to equity holders. Further investigation into the components of FCFE, such as debt issuance/repayment, share repurchases, and capital expenditures, would be necessary to understand the drivers behind the observed volatility.


Price to FCFE Ratio, Current

Datadog Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)
FCFE per share
Current share price (P)
Valuation Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors1
Accenture PLC
Adobe Inc.
AppLovin Corp.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
P/FCFE, Sector
Software & Services
P/FCFE, Industry
Information Technology

Based on: 10-K (reporting date: 2025-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

Datadog Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
No. shares of common stock outstanding1
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2
FCFE per share3
Share price1, 4
Valuation Ratio
P/FCFE5
Benchmarks
P/FCFE, Competitors6
Accenture PLC
Adobe Inc.
AppLovin Corp.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
P/FCFE, Sector
Software & Services
P/FCFE, Industry
Information Technology

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =

4 Closing price as at the filing date of Datadog Inc. Annual Report.

5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =

6 Click competitor name to see calculations.


The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits considerable fluctuation over the observed period. Initial values are high, followed by a substantial decrease, then a period of relative stability before increasing again.

Share Price
The share price demonstrates a significant decline from December 31, 2021, to December 31, 2022, decreasing from US$161.41 to US$76.67. A recovery is then observed through December 31, 2023, reaching US$129.51. Subsequent years show modest declines, settling at US$121.78 by December 31, 2025.
FCFE per Share
Free Cash Flow to Equity per share generally trends upward, increasing from US$0.80 in December 31, 2021, to US$1.80 in December 31, 2023. A notable surge occurs in December 31, 2024, reaching US$4.41, before experiencing a substantial decrease to US$0.79 in December 31, 2025.
P/FCFE Ratio
The P/FCFE ratio begins at a high of 202.25 in December 31, 2021, and then decreases significantly to 69.38 by December 31, 2022. The ratio remains relatively stable between December 31, 2022, and December 31, 2024, fluctuating around 70-29. A sharp increase is then observed in December 31, 2025, rising to 153.91. This final increase is largely attributable to the decrease in FCFE per share, despite a relatively stable share price.

The interplay between share price and FCFE per share drives the P/FCFE ratio. The initial high ratio reflects a high share price relative to FCFE. The subsequent decline in the ratio is primarily due to the decrease in share price, while the increase in FCFE per share also contributes. The final increase in the P/FCFE ratio is primarily driven by the substantial decline in FCFE per share in the most recent year, indicating a potentially less favorable valuation based on this metric.