Using the PEG framework with analyst consensus forward EPS growth of 25.0%, Datadog, Inc. has a fair value of $53.62 based on NTM EPS (FY2026) of $2.14. The current PEG ratio is 0.88.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 65.5% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $2.14 |
| Fair Value | $53.62 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $0.30 | — | — |
| FY2026E | $2.14 | +614.9% | 34 |
| FY2027E | $2.63 | +22.4% | 33 |
| FY2028E | $3.11 | +18.4% | 11 |
| FY2029E | $3.28 | +5.6% | 5 |
| FY2030E | $3.72 | +13.4% | 5 |
5Y Forward EPS CAGR: 65.5%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $-20.7M | $-0.07 | — |
| FY2022 | $-50.2M | $-0.16 | — |
| FY2023 | $48.6M | $0.14 | — |
| FY2024 | $183.7M | $0.51 | +264.3% |
| FY2025 | $107.7M | $0.30 | -41.2% |
4Y Historical EPS CAGR: 111.6%