Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Paying user area
Try for free
Datadog Inc. pages available for free this week:
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Current Ratio since 2019
- Price to Book Value (P/BV) since 2019
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Datadog Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Current Valuation Ratios
Datadog Inc., current price multiples
| Datadog Inc. | 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. | Software & Services | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Current share price (P) | |||||||||||||||||||||
| No. shares of common stock outstanding | |||||||||||||||||||||
| Growth rate (g) | |||||||||||||||||||||
| Earnings per share (EPS) | |||||||||||||||||||||
| Next year expected EPS | |||||||||||||||||||||
| Operating profit per share | |||||||||||||||||||||
| Sales per share | |||||||||||||||||||||
| Book value per share (BVPS) | |||||||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||||||
| Price to earnings (P/E) | |||||||||||||||||||||
| Price to next year expected earnings | |||||||||||||||||||||
| Price-earnings-growth (PEG) | |||||||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Datadog Inc., historical price multiples
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
The valuation ratios demonstrate significant fluctuations over the observed period. Initially, high multiples characterize the company’s valuation, which then generally decrease, though with some inconsistencies across ratios. A clear trend towards lower multiples is evident in the later years of the period.
- Price to Earnings (P/E)
- The Price to Earnings ratio is not available for 2021 and 2022. In 2023, it registers a very high value of 884.97, decreasing substantially to 235.49 in 2024, and then increasing to 398.52 in 2025. This suggests considerable volatility in earnings relative to the stock price, or potentially, significant changes in investor expectations regarding future earnings.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio is unavailable for 2021, 2022, and 2025. A high value of 797.11 is recorded in 2024, indicating a substantial premium paid for each dollar of operating profit. The absence of values in other years limits comparative analysis.
- Price to Sales (P/S)
- The Price to Sales ratio exhibits a marked decline over the period. Starting at 49.25 in 2021, it decreases to 14.64 in 2022, then to 20.19 in 2023, and continues to fall to 16.12 in 2024 and 12.53 in 2025. This indicates that the market is valuing each dollar of sales at a progressively lower level, potentially reflecting increased competition or slowing revenue growth expectations.
- Price to Book Value (P/BV)
- The Price to Book Value ratio also demonstrates a decreasing trend. It begins at 48.66 in 2021, falls to 17.39 in 2022, then to 21.22 in 2023, and continues to decline to 15.94 in 2024 and 11.50 in 2025. This suggests that the market is placing a lower value on the company’s net assets over time, potentially due to concerns about asset utilization or future profitability.
Overall, the observed trends suggest a shift in market perception of the company’s value. The consistently decreasing Price to Sales and Price to Book Value ratios, coupled with the fluctuating but generally decreasing Price to Earnings ratio, indicate a potential recalibration of valuation multiples. The absence of values for certain ratios in specific years hinders a complete assessment.
Price to Earnings (P/E)
Datadog Inc., historical P/E calculation, comparison to benchmarks
| 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$) | ||||||
| Net income (loss) (in thousands) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| 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/E Ratio, Sector | ||||||
| Software & Services | ||||||
| P/E Ratio, 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 2025 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Datadog Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibits a significant trajectory over the observed period. Initially unavailable for 2021 and 2022, the P/E ratio emerges in 2023 and fluctuates through 2025. This fluctuation correlates with the transition from negative earnings per share to positive earnings per share.
- P/E Ratio Trend
- The P/E ratio is not calculable for 2021 and 2022 due to negative earnings per share. In 2023, the P/E ratio registers a high value of 884.97, coinciding with the first year of positive earnings per share. This high value suggests a substantial premium placed on each dollar of earnings. The ratio decreases to 235.49 in 2024, indicating a moderation in valuation relative to earnings. However, it increases again to 398.52 in 2025, despite a decrease in earnings per share from 2024 to 2025.
- Earnings Per Share (EPS) Influence
- Earnings per share transitioned from negative values in 2021 (-0.07) and 2022 (-0.16) to positive values in 2023 (0.15), 2024 (0.54), and 2025 (0.31). The shift to positive EPS is a primary driver of the P/E ratio’s availability and initial high valuation. The decrease in EPS from 2024 to 2025 is accompanied by an increase in the P/E ratio, suggesting that investor expectations or other factors beyond current earnings are influencing the stock’s valuation.
- Share Price Relationship
- The share price decreased from US$161.41 in 2021 to US$76.67 in 2022, then increased to US$129.51 in 2023, followed by a slight decrease to US$126.24 in 2024 and a further decrease to US$121.78 in 2025. The share price movement does not directly explain the P/E ratio fluctuations, as the P/E ratio is more directly influenced by the earnings component. However, the share price increases in 2023 and 2024 likely contributed to the elevated P/E ratios observed in those years.
In summary, the P/E ratio demonstrates a volatile pattern, heavily influenced by the company’s transition to profitability. The high P/E ratios observed suggest that investors anticipate future earnings growth, or that the stock is trading at a premium relative to its current earnings.
Price to Operating Profit (P/OP)
Datadog Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in thousands) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| 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/OP Ratio, Sector | ||||||
| Software & Services | ||||||
| P/OP Ratio, 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 2025 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Datadog Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibits a volatile pattern over the observed period. Initial values are unavailable for 2021 and 2022. A significant value emerges in 2023, followed by a substantial increase in 2024, and then a lack of reported value in 2025.
- Share Price
- The share price demonstrates a decline from 2021 to 2022, followed by a recovery in 2023. Subsequent years show a slight downward trend, decreasing from US$129.51 in 2023 to US$121.78 in 2025.
- Operating Profit per Share
- Operating profit per share is negative in the years 2021, 2022, and 2025. A positive value of US$0.16 is recorded in 2024, representing a shift in profitability. The return to a negative value in 2025 suggests a subsequent decline in operating profitability.
- P/OP Ratio
- The P/OP ratio is not calculated for 2021, 2022, or 2025. In 2024, the ratio reaches a high value of 797.11. This substantial figure indicates that investors were willing to pay a very high price for each dollar of operating profit during that year. The absence of a value for 2025, coupled with the negative operating profit per share, prevents a comparative assessment.
The significant fluctuation in the P/OP ratio, particularly the high value in 2024, warrants further investigation. The correlation between the share price and operating profit per share should be examined to understand the drivers behind these movements. The lack of consistent P/OP values limits the ability to draw definitive conclusions about the company’s valuation trends.
Price to Sales (P/S)
Datadog Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue (in thousands) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| 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/S Ratio, Sector | ||||||
| Software & Services | ||||||
| P/S Ratio, 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 2025 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Datadog Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price to sales ratio exhibited significant fluctuation over the five-year period. Initially high, the ratio decreased substantially before stabilizing and then trending downward again. Share price and sales per share both demonstrated growth throughout the period, though at differing rates, influencing the observed ratio behavior.
- Price to Sales (P/S) Ratio
- The P/S ratio began at 49.25 in 2021, representing a very high valuation relative to sales. A dramatic decrease was observed in 2022, falling to 14.64. This suggests a significant correction in market valuation or a substantial increase in sales relative to the share price. The ratio then increased to 20.19 in 2023, before declining to 16.12 in 2024 and further to 12.53 in 2025. This recent downward trend indicates a continued moderation in the valuation relative to sales, or faster growth in sales compared to the share price.
- Share Price
- The share price experienced a decline from US$161.41 in 2021 to US$76.67 in 2022. Subsequent years saw recovery, with the price reaching US$129.51 in 2023, followed by a slight decrease to US$126.24 in 2024, and a further decrease to US$121.78 in 2025. While the price recovered from the 2022 low, it did not return to the 2021 level.
- Sales per Share
- Sales per share consistently increased throughout the period, rising from US$3.28 in 2021 to US$9.72 in 2025. This represents a substantial growth in sales generated per outstanding share, indicating increasing revenue efficiency. The rate of increase appeared relatively consistent year-over-year.
The interplay between the share price and sales per share is evident in the P/S ratio’s movement. The initial high ratio in 2021, coupled with the subsequent share price decline in 2022 and increasing sales per share, contributed to the significant reduction in the P/S ratio. The more recent trend suggests that sales growth is not fully reflected in the share price, leading to a continued decrease in the P/S ratio.
Price to Book Value (P/BV)
Datadog Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| 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/BV Ratio, Sector | ||||||
| Software & Services | ||||||
| P/BV Ratio, 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 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Datadog Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price to book value ratio exhibits a significant degree of fluctuation over the observed period. Initially high, the ratio decreased substantially before stabilizing and continuing a downward trend. This suggests a changing market perception of the company’s net asset value relative to its market capitalization.
- Price to Book Value (P/BV) Trend
- In 2021, the P/BV ratio stood at 48.66. A dramatic decline was observed in 2022, falling to 17.39. The ratio then increased to 21.22 in 2023, but subsequently decreased to 15.94 in 2024 and further to 11.50 in 2025. This represents an overall decrease in the P/BV ratio from 2021 to 2025.
The share price experienced a considerable decrease from 2021 to 2022, followed by a recovery and subsequent stabilization with a slight decline. Simultaneously, the book value per share consistently increased throughout the period. The combined effect of these movements is reflected in the P/BV ratio’s trajectory.
- Share Price and Book Value Per Share
- The share price decreased from US$161.41 in 2021 to US$76.67 in 2022, then rose to US$129.51 in 2023, and settled at US$126.24 and US$121.78 in 2024 and 2025 respectively. Book value per share increased steadily from US$3.32 in 2021 to US$10.59 in 2025.
The decreasing P/BV ratio, coupled with the increasing book value per share, indicates that the market is placing a progressively lower valuation on the company’s net assets. This could be due to various factors, including changing investor sentiment, perceived risks, or shifts in the competitive landscape. The trend suggests the market believes the company’s intrinsic value, as represented by its book value, is becoming more accurately reflected in the share price.