DatadogMEX:DDOG 81 3-Year ROIIC % is 1.58 as of Dec. 2025. GuruFocus rates MEX:DDOG with a GF Score™ of 81/100 and a GF Value™ of MXN3,262.65 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,623 Software companies, Datadog ranks worse than 56.27% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Datadog's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 1.58%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Datadog's 3-Year ROIIC % or its related term are showing as below:
MEX:DDOG's 3-Year ROIIC % is ranked worse than 56.27% of 2623
companies
in the Software industry
Industry Median: 5.22
vs MEX:DDOG: 1.58
Datadog (MEX:DDOG) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Datadog 3-Year ROIIC % Related Terms
Datadog 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Datadog's 3-Year ROIIC % 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.
MEX:DDOG vs SNOW, ADP, ADBE: 3-Year ROIIC % Comparison
For the Software - Application subindustry, Datadog's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Datadog's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Datadog's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Datadog (MEX:DDOG) has a 3-Year ROIIC % of 1.58 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Datadog and its competitors. According to the industry distribution chart, Datadog ranks #1476 out of 2623 companies in the Software industry, placing it in the top 56.3%.
Is Datadog's 3-Year ROIIC % too high?
Datadog's current 3-Year ROIIC % is 1.58. The Software industry median 3-Year ROIIC % is 5.22. Datadog's value of 1.58 is 69.7% below this industry median. Based on the distribution chart, Datadog ranks #1476 out of 2623 companies in the Software industry, which is below the industry midpoint. Overall, Datadog has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Datadog's 3-Year ROIIC % compare to SNOW and ADP?
According to the Software industry distribution chart, Datadog ranks #1476 out of 2623 companies for 3-Year ROIIC %. This places Datadog in the lower half of its industry. The industry median 3-Year ROIIC % is 5.22. Datadog's value of 1.58 is 69.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Software company?
The median 3-Year ROIIC % among Software companies is 5.22, based on 2,623 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Datadog's current 3-Year ROIIC % of 1.58 is 69.7% below 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Datadog and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Datadog's current 3-Year ROIIC % is 1.58. 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 MXN3,262.65, compared to a current price of MXN4,466.00 — trading 36.9% above its estimated fair value. The current 3-Year ROIIC % is 1.58 and 69.7% below the Software industry median of 5.22. Datadog's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Datadog (MEX:DDOG), the current 3-Year ROIIC % is 1.58 as of Dec. 2025. 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 MXN4,466.00 is trading 36.9% above its estimated GF Value™ of MXN3,262.65.
GuruFocus considers Datadog to be Significantly Overvalued.
Key valuation signals for MEX:DDOG:
3-Year ROIIC %: 1.58
GF Value™: MXN3,262.65 vs. price of MXN4,466.00 (36.9% above fair value)
Industry Position: 69.7% below the Software median (#1476 of 2623)
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.
81GF Score
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