Services-Prepackaged Software · SIC 7372

Dynatrace, Inc.

DT

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Latest revenue

$515.5M

as of 2025-12-31

Latest net income

$40.1M

as of 2025-12-31

Net margin

7.8%

as of 2025-12-31

Community sentiment

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DT vs S&P 500 · rebased to 100

-6.5% / yr 25.2 pts / yr vs S&P 500(S&P 500 +18.7% / yr) 28.6% total
Compare:

Live market

delayed ≤15 min
$40.76
0.95%
Market cap
$11.52B
Enterprise value
$10.42B
P/E (trailing)
70.8×
Forward P/E
P/B
4.41×
Dividend yield
0.0%
52-wk high
$57.55
52-wk low
$31.64
Beta
Shares out
282.5M

What this company does

AI

ITEM 1. BUSINESS Overview Dynatrace combines broad and deep observability, continuous runtime application security, and advanced agentic AI operations to deliver answers and intelligent automation across IT operations, development, security, business, and executive teams. This unified approach enables organizations to optimize their rapidly evolving AI, cloud, and IT operations, accelerate secure software delivery, and improve digital performance. Our vision is a world where software works perfectly. The Dynatrace platform is built to scale, partnering and integrating seamlessly into hybrid, multicloud ecosystems, including major hyperscalers such as Amazon Web Services (“AWS”), Microsoft…

AI summary unavailable — showing raw filing excerpt

Generated from DT's filing dated 2026-05-20

Key risks

AI

Table of Contents ITEM 1A. RISK FACTORS Investing in our common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information in this Annual Report on Form 10-K, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes, before making a decision to invest in our common stock. The risks and uncertainties described below may not be the only ones we face. If any of the risks actually occur, our business, operating results, financial condition and prospects could be materially and…

AI summary unavailable — showing raw filing excerpt

Generated from DT's filing dated 2026-05-20

7.5
of 10

ActaClear Score

Above avg
#22 of 228 in Services-Prepackaged Software
-0.1 · 8d
Profitability·25%
8.0
Growth·15%
7.6
Value·20%
6.3
Quality·20%
Momentum·20%
8.1

Computed from 5 years of SEC fundamentals + latest market data, ranked within Services-Prepackaged Software (228 peers). 10 = best in industry, 5 = median, 0 = worst. Refreshed Jun 13, 2026.

0.95
Price / FV

Fair value · DCF

Fair value
~6% upside at this growth
24.4% / yr
-5%30%
Terminal growthWACC 9.8% · 10y forecast
Market-implied growth at today's price: 23.6% / yrfor 10 years, holding WACC 9.8% and terminal 2.5%.
Current price
$41.92
DCF fair value
$44.24
FCF base (last FY)
$162.67M
Net debt
$-1.10B
Methodology + caveats (click to expand)

Method. 10-year forecast of free cash flow, discounted at the company's WACC, with a Gordon-growth terminal at year 10. FCF is proxied by last fiscal-year net income (proper FCF needs CFO − CapEx by year, which we don't store yet). Beta defaults to 1.0 when not reported.

Why DCF is fragile. Treat the output as a thinking aid, not a verdict. Honest weaknesses of any DCF:

  • Growth is the dominant assumption. No one can foresee 10 years of growth — small changes in the slider can double or halve fair value. The reverse-DCF readout above tells you what the market is implicitly assuming; ask yourself whether that's realistic before trusting either number.
  • Terminal value dominates. In most DCFs, 60-80% of the answer comes from the terminal-value calculation — i.e., everything AFTER year 10. A 0.5pp change in terminal growth, or in WACC, can swing fair value by 20-30%.
  • WACC is itself a guess. We use a textbook CAPM cost of equity (Rf 4.3%, MRP 5.5%, β from the quote) plus a 6% pretax cost of debt — none of these are the company's actual marginal financing cost.
  • No moat / disruption modelling. The model assumes the company keeps earning whatever it earns today, compounding cleanly. Competitive shifts, regulatory action, and technology disruption can invalidate the forecast overnight.
  • Net income ≠ free cash flow. For capex-heavy names (semis, telcos) net income overstates distributable cash. For low-capex names (software) it understates. Both reduce the precision of the FV figure.
  • Reflexivity. A high stock price often becomes a self-fulfilling prophecy via better hiring, financing, and customer trust. DCF can't see this.

Take the DCF, the reverse-DCF implied growth, the historical multiples, and the community sentiment together. When they agree, conviction. When they disagree, the disagreement is the most informative thing on the page.

Historical multiples

How does DT's current valuation compare to its own past?

Current P/E
70.8×
Own 5y average
58.5×
Own 5y median
62.4×
vs. own average
+21%
Industry 5y avg P/E
45.1×
Median P/E across the top 40 peers in Services-Prepackaged Software by market cap, then averaged across 6 years.
vs. industry
+57%
PEG (this co.)
2.91
5y revenue CAGR
24.4%
Industry PEG
2.10
Industry 5y avg growth
21.5%
Solid: this company. Dotted: industry median.
Dashed flat: own 5y avg.
Coloured dot at right: current P/E.

P/E uses year-end weekly close ÷ (net income ÷ shares outstanding today). Held shares constant at today's count, which understates the per-share earnings improvement from buybacks over the period. PEG uses 5y revenue CAGR as a proxy for EPS growth — close, but not identical (margin expansion or dilution can drive a wedge). Best read as a comparator across companies and industries, not as a precise replica of historical multiples.