Datadog Gross Profit vs. Price To Sales

DDOG Stock  USD 152.75  0.79  0.52%   
Considering the key profitability indicators obtained from Datadog's historical financial statements, Datadog's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Datadog's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2018-09-30
Previous Quarter
521.6 M
Current Value
552.3 M
Quarterly Volatility
170.7 M
 
Covid
The Datadog's current Price To Sales Ratio is estimated to increase to 22.00. The Datadog's current Days Sales Outstanding is estimated to increase to 109.13. At this time, Datadog's Total Other Income Expense Net is most likely to increase significantly in the upcoming years. The Datadog's current Net Income is estimated to increase to about 51 M, while Operating Income is forecasted to increase to (31.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.620.8074
Way Down
Pretty Stable
For Datadog profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Datadog to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Datadog utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Datadog's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Datadog over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Datadog Stock please use our How to Invest in Datadog guide.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Datadog. If investors know Datadog will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Datadog listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.333
Earnings Share
0.55
Revenue Per Share
7.609
Quarterly Revenue Growth
0.26
Return On Assets
0.0111
The market value of Datadog is measured differently than its book value, which is the value of Datadog that is recorded on the company's balance sheet. Investors also form their own opinion of Datadog's value that differs from its market value or its book value, called intrinsic value, which is Datadog's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Datadog's market value can be influenced by many factors that don't directly affect Datadog's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Datadog's value and its price as these two are different measures arrived at by different means. Investors typically determine if Datadog is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Datadog's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Datadog Price To Sales vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Datadog's current stock value. Our valuation model uses many indicators to compare Datadog value to that of its competitors to determine the firm's financial worth.
Datadog is rated # 2 in gross profit category among its peers. It is one of the top stocks in price to sales category among its peers . The ratio of Gross Profit to Price To Sales for Datadog is about  65,272,562 . At this time, Datadog's Gross Profit is most likely to increase significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Datadog by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Datadog Price To Sales vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Datadog

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.33 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Datadog

P/S

 = 

MV Per Share

Revenue Per Share

 = 
20.36 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Datadog Price To Sales Comparison

Datadog is currently under evaluation in price to sales category among its peers.

Datadog Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Datadog, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Datadog will eventually generate negative long term returns. The profitability progress is the general direction of Datadog's change in net profit over the period of time. It can combine multiple indicators of Datadog, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-2.2 M-2.3 M
Operating Income-33.5 M-31.8 M
Net Loss-34.5 M-36.2 M
Income Before Tax60.2 M63.2 M
Non Operating Income Net Other23.7 M24.9 M
Total Other Income Expense Net93.7 M98.4 M
Net Loss-45.1 M-42.9 M
Net Income48.6 M51 M
Income Tax Expense11.7 M12.3 M
Net Interest Income76.2 M80.1 M
Interest Income84.3 M45.4 M
Change To Netincome425.5 M446.8 M
Net Income Per Share 0.15  0.16 
Income Quality 13.59  14.27 
Net Income Per E B T 0.81  1.21 

Datadog Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Datadog. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Datadog position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Datadog's important profitability drivers and their relationship over time.

Use Datadog in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Datadog position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Datadog will appreciate offsetting losses from the drop in the long position's value.

Datadog Pair Trading

Datadog Pair Trading Analysis

The ability to find closely correlated positions to Datadog could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Datadog when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Datadog - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Datadog to buy it.
The correlation of Datadog is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Datadog moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Datadog moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Datadog can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Datadog position

In addition to having Datadog in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Municipals ETFs
Municipals ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Municipals ETFs theme has 111 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Municipals ETFs Theme or any other thematic opportunities.
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When determining whether Datadog is a strong investment it is important to analyze Datadog's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Datadog's future performance. For an informed investment choice regarding Datadog Stock, refer to the following important reports:
Check out Investing Opportunities.
For more detail on how to invest in Datadog Stock please use our How to Invest in Datadog guide.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project Datadog's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Datadog at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Datadog's income statement, its balance sheet, and the statement of cash flows.
Potential Datadog investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Datadog investors may work on each financial statement separately, they are all related. The changes in Datadog's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Datadog's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.