Datadog (WBO:DDOG) Beneish M-Score: -2.60 (As of Jun. 26, 2026)


WBO:DDOG Datadog Inc WBO:DDOG
79 GF Score
Price €193.00
GF Value €165.21
Valuation Modestly Overvalued
! 1 Warning Sign
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What is Datadog Beneish M-Score?

Datadog WBO:DDOG -1.83% 79 Beneish M-Score is -2.60 as of Jun. 26, 2026. GuruFocus rates WBO:DDOG with a GF Score™ of 79/100 and a GF Value™ of €165.21 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,634 Software companies, Datadog ranks better than 54.06% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Datadog's Beneish M-Score or its related term are showing as below:

WBO:DDOG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17   Med: -2.78   Max: -1.01
Current: -2.6

During the past 9 years, the highest Beneish M-Score of Datadog was -1.01. The lowest was -3.17. And the median was -2.78.


Datadog Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Datadog's Beneish M-Score 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.

Datadog Beneish M-Score Chart

Datadog Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only -1.17 -2.74 -3.01 -3.00 -2.69

Datadog Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.09 -2.95 -2.92 -2.69 -2.60

WBO:DDOG vs SNOW, ADP, INTU: Beneish M-Score Comparison

For the Software - Application subindustry, Datadog's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Datadog's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Datadog's Beneish M-Score falls into.


WBO:DDOG
79GF Score
Datadog Inc WBO:DDOG
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Datadog Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Datadog for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0818+0.528 * 1.0032+0.404 * 1.3202+0.892 * 1.1999+0.115 * 1.1141
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9972+4.679 * -0.139273-0.327 * 0.8184
=-2.67

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was €589 Mil.
Revenue was 870.558 + 814.028 + 754.575 + 716.801 = €3,156 Mil.
Gross Profit was 689.576 + 654.42 + 604.233 + 572.898 = €2,521 Mil.
Total Current Assets was €4,866 Mil.
Total Assets was €6,013 Mil.
Property, Plant and Equipment(Net PPE) was €512 Mil.
Depreciation, Depletion and Amortization(DDA) was €54 Mil.
Selling, General, & Admin. Expense(SGA) was €1,130 Mil.
Total Current Liabilities was €1,432 Mil.
Long-Term Debt & Capital Lease Obligation was €1,076 Mil.
Net Income was 45.477 + 39.768 + 28.87 + 2.295 = €116 Mil.
Non Operating Income was 4.751 + 0.647 + -1.464 + -6.47 = €-3 Mil.
Cash Flow from Operations was 289.448 + 279.317 + 214.252 + 173.448 = €956 Mil.
Total Receivables was €453 Mil.
Revenue was 704.437 + 704.529 + 621.704 + 599.464 = €2,630 Mil.
Gross Profit was 558.631 + 566.839 + 497.586 + 484.734 = €2,108 Mil.
Total Current Assets was €4,696 Mil.
Total Assets was €5,560 Mil.
Property, Plant and Equipment(Net PPE) was €419 Mil.
Depreciation, Depletion and Amortization(DDA) was €49 Mil.
Selling, General, & Admin. Expense(SGA) was €945 Mil.
Total Current Liabilities was €1,716 Mil.
Long-Term Debt & Capital Lease Obligation was €1,118 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(588.575 / 3155.962) / (453.409 / 2630.134)
=0.186496 / 0.17239
=1.0818

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(2107.79 / 2630.134) / (2521.127 / 3155.962)
=0.8014 / 0.798846
=1.0032

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (4865.803 + 512.256) / 6013.49) / (1 - (4695.613 + 419.016) / 5559.602)
=0.105668 / 0.080037
=1.3202

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=3155.962 / 2630.134
=1.1999

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(49.479 / (49.479 + 419.016)) / (53.644 / (53.644 + 512.256))
=0.105613 / 0.094794
=1.1141

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1130.494 / 3155.962) / (944.764 / 2630.134)
=0.358209 / 0.359208
=0.9972

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1075.758 + 1432.356) / 6013.49) / ((1117.666 + 1715.711) / 5559.602)
=0.417081 / 0.509637
=0.8184

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(116.41 - -2.536 - 956.465) / 6013.49
=-0.139273

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Datadog has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.60 mean?
Datadog (WBO:DDOG) has a Beneish M-Score of -2.60 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Datadog and its competitors. According to the industry distribution chart, Datadog ranks #1210 out of 2634 companies in the Software industry, placing it in the top 45.9%.
Is Datadog's Beneish M-Score too high?
Datadog's current Beneish M-Score is -2.60. Based on the distribution chart, Datadog ranks #1210 out of 2634 companies in the Software industry, which is above the industry midpoint. Overall, Datadog has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Datadog's Beneish M-Score compare to SNOW and ADP?
According to the Software industry distribution chart, Datadog ranks #1210 out of 2634 companies for Beneish M-Score. This puts Datadog in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Software company?
A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Datadog and its competitors. Datadog's current Beneish M-Score is -2.60. 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?
Based on GuruFocus' analysis, Datadog (WBO:DDOG) is currently considered Modestly Overvalued. The stock's GF Value™ is €165.21, compared to a current price of €193.00 — trading 16.8% above its estimated fair value. The current Beneish M-Score is -2.60. Datadog's overall GF Score™ is 79/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Datadog (WBO:DDOG), the current Beneish M-Score is -2.60 as of Jun. 26, 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 (WBO:DDOG) Overvalued in 2026?

Based on GuruFocus' analysis, Datadog stock appears to be overvalued. The current stock price of €193.00 is trading 16.8% above its estimated GF Value™ of €165.21. GuruFocus considers Datadog to be Modestly Overvalued.

Key valuation signals for WBO:DDOG:

  • Beneish M-Score: -2.60
  • GF Value™: €165.21 vs. price of €193.00 (16.8% above fair value)
  • GF Score™: 79/100 with 1 warning sign

No single metric tells the full story. See the WBO:DDOG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Datadog Business Description

Address 620 8th Avenue, 45th Floor, New York, NY, USA, 10018
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.
79GF Score

Get the complete analysis for WBO:DDOG

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€193.00
Price
€165.21
GF Value