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DatadogXSWX:DDOG +0.92%82 Debt-to-EBITDA is 4.07 as of Mar. 2026, which is 50% below its 10-year median of 8.13. GuruFocus rates XSWX:DDOG with a GF Score™ of 82/100 and a GF Value™ of CHF155.87. The stock has 5 warning signs investors should review. Among 1,715 Software companies, Datadog ranks worse than 87.87% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Datadog's Debt-to-EBITDA or its related term are showing as below:
XSWX:DDOG'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -16.91 Med: 8.13 Max: 63.96
Current: 5.62
During the past 9 years, the highest Debt-to-EBITDA Ratio of Datadog was 63.96. The lowest was -16.91. And the median was 8.13.
XSWX:DDOG's Debt-to-EBITDA is ranked worse than 87.87% of 1715
companies
in the Software industry
Industry Median: 1.09
vs XSWX:DDOG: 5.62
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Datadog Debt-to-EBITDA Related Terms
Datadog Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Datadog's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:DDOG vs SNOW, ADP, ADBE: Debt-to-EBITDA Comparison
For the Software - Application subindustry, Datadog's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Datadog Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Datadog's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Datadog's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Datadog (XSWX:DDOG) has a Debt-to-EBITDA of 4.07 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Datadog. This is 50% below median its historical median of 8.13. According to the industry distribution chart, Datadog ranks #1507 out of 1715 companies in the Software industry, placing it in the top 87.9%.
Is Datadog's Debt-to-EBITDA too high?
Datadog's current Debt-to-EBITDA of 4.07 is 50% below median its 10-year median of 8.13. The Software industry median Debt-to-EBITDA is 1.09. Datadog's value of 4.07 is 273.4% above this industry median. Based on the distribution chart, Datadog ranks #1507 out of 1715 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Datadog has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Datadog's Debt-to-EBITDA compare to SNOW and ADP?
According to the Software industry distribution chart, Datadog ranks #1507 out of 1715 companies for Debt-to-EBITDA. This places Datadog in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. Datadog's value of 4.07 is 273.4% above this benchmark. While the company's 10-year median is 8.13 vs. the industry median of 1.09, Datadog has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.09, based on 1,715 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Datadog's current Debt-to-EBITDA of 4.07 is 273.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Datadog. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Datadog's current Debt-to-EBITDA is 4.07, which is 50% below median its own 10-year median of 8.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Datadog stock overvalued right now?
Datadog (XSWX:DDOG) has a current Debt-to-EBITDA of 4.07. The stock's GF Value™ is CHF155.87, compared to a current price of CHF213.90 — trading 37.2% above its estimated fair value. The current Debt-to-EBITDA is 4.07, which is 50% below median its 10-year median of 8.13 and 273.4% above the Software industry median of 1.09. Datadog's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Datadog (XSWX:DDOG), the current Debt-to-EBITDA is 4.07 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Datadog (XSWX:DDOG) Overvalued in 2026?
Based on GuruFocus' analysis, Datadog stock appears to be overvalued.
The current stock price of CHF213.90 is trading 37.2% above its estimated GF Value™ of CHF155.87.
Key valuation signals for XSWX:DDOG:
Debt-to-EBITDA: 4.07 (50% below median its 10-year median of 8.13)
GF Value™: CHF155.87 vs. price of CHF213.90 (37.2% above fair value)
Industry Position: 273.4% above the Software median (#1507 of 1715)
No single metric tells the full story. See the XSWX:DDOG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Datadog is a cloud-native company that focuses on analyzing machine data. The firm's product portfolio, delivered via software as a service, enables clients to monitor and analyze their entire information technology infrastructure, from servers to applications and Python scripts. Datadog's platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to utilize it for a variety of applications throughout their businesses to ensure uptime and latency objectives.
82GF Score
Get the complete analysis for XSWX:DDOG
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