PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Datadog's PE Ratio without NRI is 101.83. Datadog's 5-Year EBITDA growth rate is 67.90%. Therefore, Datadog's PEG Ratio for today is 1.50.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Datadog's PEG Ratio or its related term are showing as below:
MEX:DDOG'
s PEG Ratio Range Over the Past 10 Years
Min: 0 Med: 0 Max: 1.66
Current: 1.66
During the past 9 years, Datadog's highest PEG Ratio was 1.66. The lowest was 0.00. And the median was 0.00.
MEX:DDOG's PEG Ratio is ranked worse than 60.54% of 821
companies
in the Software industry
Industry Median: 1.27
vs MEX:DDOG: 1.66
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Datadog (MEX:DDOG) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Datadog PEG Ratio Related Terms
Datadog PEG Ratio Historical Data
* Premium members only.
The historical data trend for Datadog's PEG Ratio 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.
For the Software - Application subindustry, Datadog's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Software Industry
For the Software industry and Technology sector, Datadog's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Datadog's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Datadog (MEX:DDOG) has a PEG Ratio of 1.50 as of Jun. 30, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Datadog and its competitors. According to the industry distribution chart, Datadog ranks #497 out of 821 companies in the Software industry, placing it in the top 60.5%.
Is Datadog's PEG Ratio too high?
Datadog's current PEG Ratio is 1.50. The Software industry median PEG Ratio is 1.27. Datadog's value of 1.50 is 18.1% above this industry median. Based on the distribution chart, Datadog ranks #497 out of 821 companies in the Software industry, which is below the industry midpoint. Overall, Datadog has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Datadog's PEG Ratio compare to SNOW and ADP?
According to the Software industry distribution chart, Datadog ranks #497 out of 821 companies for PEG Ratio. This places Datadog in the lower half of its industry. The industry median PEG Ratio is 1.27. Datadog's value of 1.50 is 18.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Software company?
The median PEG Ratio among Software companies is 1.27, based on 821 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Datadog's current PEG Ratio of 1.50 is 18.1% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Datadog and its competitors. For the Software industry, the median PEG Ratio is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Datadog's current PEG Ratio is 1.50. 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 (MEX:DDOG) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN3,114.25, compared to a current price of MXN4,093.00 — trading 31.4% above its estimated fair value. The current PEG Ratio is 1.50 and 18.1% above the Software industry median of 1.27. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Datadog (MEX:DDOG), the current PEG Ratio is 1.50 as of Jun. 30, 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 (MEX:DDOG) Overvalued in 2026?
Based on GuruFocus' analysis, Datadog stock appears to be overvalued.
The current stock price of MXN4,093.00 is trading 31.4% above its estimated GF Value™ of MXN3,114.25.
GuruFocus considers Datadog to be Significantly Overvalued.
Key valuation signals for MEX:DDOG:
PEG Ratio: 1.50
GF Value™: MXN3,114.25 vs. price of MXN4,093.00 (31.4% above fair value)
Industry Position: 18.1% above the Software median (#497 of 821)
No single metric tells the full story. See the MEX: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 MEX:DDOG
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