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).
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2019
- Operating Profit Margin since 2019
- Current Ratio since 2019
- Debt to Equity since 2019
- Price to Earnings (P/E) since 2019
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Current Valuation Ratios
Datadog Inc., current price multiples
| Datadog Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | 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 operating profit (P/OP) | |||||||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||||||
Based on: 10-K (reporting date: 2024-12-31).
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Price to Earnings (P/E) Ratio
- No data is available for the years 2020 through 2022. However, there is a significant peak in 2023 with a ratio of 884.97, followed by a substantial decrease to 235.49 in 2024. Despite the decline, the ratio remains elevated, indicating high valuation relative to earnings in those years.
- Price to Operating Profit (P/OP) Ratio
- This ratio is only reported for 2024, with a high value of 797.11. The lack of data for previous years prevents trend analysis, but the singular available figure suggests the market valuation relative to operating profit remains notably high in 2024.
- Price to Sales (P/S) Ratio
- From 2020 to 2021, the ratio remains relatively stable at approximately 49.5, indicating consistent valuation relative to sales. In 2022, there is a marked decline to 14.64, followed by a moderate rebound to 20.19 in 2023, then a further decrease to 16.12 in 2024. Overall, the trend shows a significant reduction in the valuation relative to sales over the five-year period, with some volatility in the latter years.
- Price to Book Value (P/BV) Ratio
- This ratio increases from 31.25 in 2020 to a peak of 48.66 in 2021, indicating rising market valuation relative to book value. Subsequently, there is a notable decline to 17.39 in 2022, followed by a partial recovery to 21.22 in 2023, and a decrease to 15.94 in 2024. The trend reflects considerable fluctuations, with an overall downward trajectory after 2021.
Price to Earnings (P/E)
Datadog Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 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 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrates considerable volatility over the observed period. It increased significantly from $97.61 at the end of 2020 to a peak of $161.41 at the end of 2021. Subsequently, the share price declined sharply to $76.67 by the end of 2022, before recovering to $129.51 in 2023. By the end of 2024, it experienced a slight decrease, settling at $126.24. Overall, the share price shows cyclical fluctuations with notable growth early on, a steep drop, and a partial recovery by the most recent period.
- Earnings Per Share (EPS)
- EPS values indicate an initial negative trajectory, falling from -$0.08 in 2020 to -$0.16 in 2022, reflecting increasing net losses. However, a positive reversal occurs in 2023, with EPS turning positive at $0.15, and further improving to $0.54 in 2024. This suggests a significant improvement in profitability, transitioning from losses to generating earnings per share.
- Price-to-Earnings (P/E) Ratio
- P/E ratios are available only for the last two years. The ratio is extremely high at 884.97 in 2023 and then decreases markedly to 235.49 in 2024. These elevated P/E ratios reflect high market valuation relative to earnings, likely due to recent positive earnings combined with historically volatile share prices. The decrease in P/E from 2023 to 2024 indicates some normalization in valuation, concurrent with improved earnings.
Price to Operating Profit (P/OP)
Datadog Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| 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. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 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 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price displayed significant volatility over the analyzed periods. Initially, the share price increased markedly from $97.61 in 2020 to $161.41 in 2021. This was followed by a steep decline to $76.67 in 2022. Subsequently, the share price recovered to $129.51 in 2023 and slightly decreased to $126.24 in 2024. Overall, the share price exhibited a pattern of rapid growth, a sharp downturn, and a partial recovery, suggesting fluctuating market sentiment or company performance impacts during these years.
- Operating Profit per Share
- The operating profit per share was negative for the first four years, starting at -$0.04 in 2020 and worsening to -$0.18 in 2022. There was an improvement in 2023 with a reduction in the loss to -$0.10, culminating in a positive operating profit per share of $0.16 in 2024. This indicates a gradual operational improvement over time, with the company finally achieving profitability at the operating level by the final year.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio was only available for 2024, registering an extremely high value at approximately 797.11. This unusually elevated ratio suggests a very high valuation relative to operating profit, which may indicate market expectations of future growth or a potential overvaluation based on current operating profits.
- Overall Analysis
- Despite early operating losses, the company showed progress towards profitability by the last year observed. The share price movements reflect periods of optimism and correction, with a strong recovery after the 2022 decline. The very high P/OP ratio in the latest year emphasizes a market valuation that may be pricing in anticipated future improvements rather than current operating profitability. Continued monitoring of operating profit improvements and valuation multiples would be advisable to assess sustainability of this trend.
Price to Sales (P/S)
Datadog Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue (in thousands) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 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 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share price
- The share price exhibited significant volatility over the observed periods. It rose sharply from $97.61 at the end of 2020 to a peak of $161.41 at the end of 2021, indicating strong market confidence. However, it declined substantially to $76.67 by the end of 2022, reflecting a notable correction or market reassessment. Subsequently, there was a recovery in 2023, with the price increasing to $129.51, followed by a slight decrease to $126.24 in 2024. Overall, the share price demonstrated considerable fluctuations, with a general trend of recovery after the sharp decline in 2022.
- Sales per share
- Sales per share showed a consistent upward trajectory throughout the observed years. Starting from $1.97 in 2020, sales per share increased steadily each year, reaching $3.28 in 2021, then advancing sharply to $5.24 in 2022. This growth trend continued through 2023 and 2024, with sales per share rising to $6.41 and $7.83 respectively. The continuous increase in sales per share suggests improving operational performance and revenue generation capacity over time.
- Price-to-Sales ratio (P/S)
- The Price-to-Sales ratio exhibited a downward trend from 2020 to 2024, starting at high levels of approximately 49.57 in 2020 and 49.25 in 2021. This ratio then dropped significantly to 14.64 by the end of 2022, followed by a moderate increase to 20.19 in 2023 and then a decrease to 16.12 in 2024. The initial high P/S ratios coupled with declining values over time suggest that while the market price experienced volatility, the underlying sales growth was strong, leading to a reduced valuation multiple relative to sales. This may indicate a market adjustment to more balanced expectations or enhanced sales performance.
Price to Book Value (P/BV)
Datadog Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| 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. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Datadog Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price experienced significant volatility over the analyzed period. It increased sharply from $97.61 at the end of 2020 to a peak of $161.41 by the end of 2021. Subsequently, there was a notable decline to $76.67 in 2022, followed by a recovery to $129.51 in 2023. The price showed a slight decrease to $126.24 in 2024. Overall, the share price shows a pattern of rapid fluctuation with periods of substantial growth and correction.
- Book Value Per Share (BVPS)
- The book value per share demonstrated consistent growth throughout the time frame. Starting at $3.12 in 2020, it gradually increased each year to reach $7.92 in 2024. This steady rise indicates an accumulation of equity or retained earnings, reflecting strengthening underlying financial fundamentals over time.
- Price to Book Value Ratio (P/BV)
- The P/BV ratio presented a declining trend from an initially very high level. It started at 31.25 in 2020, spiked to 48.66 in 2021, indicating elevated market valuation relative to book value during that year. Following this peak, a sharp decrease occurred to 17.39 in 2022, followed by a modest increase to 21.22 in 2023, and further decline to 15.94 in 2024. This trend suggests that, despite fluctuations in market price, the stock has become relatively less expensive compared to its book value over time, potentially reflecting a market reassessment toward more conservative valuations.
- Overall Analysis
- The data reveals a company with increasing intrinsic equity value as reflected by BVPS growth, contrasted by volatile market perceptions reflected in the share price and P/BV ratio variations. The pronounced fluctuations in share price and valuation multiples may be driven by external market conditions or investor sentiment, while the consistent growth in book value per share indicates steady improvement in the company's net asset base.