Using the industry peer median P/E multiple (trailing + forward), Datadog, Inc. (DDOG) has a fair value of $33.14 based on 6 comparable companies in the Software - Application industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Datadog, Inc.DDOG | 45,176 | 414.3x | 58.0x |
| Western Digital CorporationWDC | 93,307 | 53.8x | 31.0x |
| Seagate Technology Holdings plcSTX | 83,285 | 56.4x | 29.5x |
| Autodesk, Inc.ADSK | 50,905 | 45.9x | 23.5x |
| NXP Semiconductors N.V.NXPI | 50,263 | 25.0x | 15.2x |
| Workday, Inc.WDAY | 34,037 | 49.8x | 12.3x |
| Fair Isaac CorporationFICO | 24,747 | 39.3x | 25.1x |
| Industry Median | 47.8x | 24.3x | |
| (*) Profit after tax | 108 | 780 | |
| Equity Value | 5,154 | 18,935 | |
| (/) Outstanding shares | 363 | 363 | |
| Fair Price | $14 | $52 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.