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Datadog, Inc. Class A Common Stock (DDOG) — WACC Analysis

WACC Breakdown

Datadog, Inc. Class A Common Stock (DDOG) has a weighted average cost of capital (WACC) of 11.2%. The cost of equity is 11.3%, derived from a beta of 1.70 and a risk-free rate of 5.1%. The after-tax cost of debt is 1.6%. The capital structure is 98.9% equity and 1.1% debt.

Interpretation

A WACC of 11.2% is moderate, reflecting the market's balanced risk assessment of Datadog, Inc. Class A Common Stock.

Investors can compare DDOG's WACC of 11.2% against industry peers to gauge its relative financing costs. A beta of 1.70 reflects the stock's volatility relative to the broader market.

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VALUATION

DDOG WACC: 11.20% for Datadog, Inc. Class A Common Stock

Current inputs imply a 11.30% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Datadog, Inc. Class A Common Stock Common Stock (DDOG) WACC Results
Weighted Average Cost of Capital
11.20%
Cost of Equity
11.30%
Risk-Free Rate5.10%
Beta1.70
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 98.90%($88.73B)
Debt: 1.10%($985.54M)
Equity Component
11.18%
98.90% × 11.30%
Debt Component
0.02%
1.10% × 1.58%

Datadog, Inc. Class A Common Stock (DDOG) WACC in context

Datadog, Inc. Class A Common Stock (DDOG) currently screens with an estimated WACC of 11.20%. That blends a 11.30% cost of equity, a 2.00% pre-tax cost of debt, and a 98.90% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What DDOG WACC implies

A 11.20% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates DDOG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.70 and equity accounts for 98.90% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

DDOG WACC: 11.20% — Datadog, Inc. Class A Common Stock Cost of Capital (October 2026) | DeepViews