Dynatrace DT
United StatesTechnology · Software - ApplicationUSD
59.97 USD (+0.3%)
34 analysts
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Dynatrace is a software company offering an AI-powered observability and application security platform, helping organizations monitor and optimize the performance of their cloud systems.
Key points
from its scores- ✓Favourable backdrop7.5
- ✓Very solid balance sheet7.2
- ✓Good share-price trend7.0
- ✕Little or no dividend1.5
- ✕Demanding valuation3.7
AI analysis
bottom line, main risk, context and newsBusiness quality and revenue growth justify waiting, but valuation and earnings decline warrant caution.
Dynatrace presents a high-quality business model with an 81.60% gross margin and 187.54% free cash flow conversion, but its valuation is demanding (forward P/E of 26.08) and earnings growth is negative (-24.90%), limiting its near-term appeal.
The main risk is the slowdown in earnings growth (-24.90%) amid a demanding valuation (P/E of 119.62), which could lead to a correction if profitability does not recover.
Context and risks
Dynatrace has no material exposure to current macro factors: its observability software business does not depend on commodities, interest rates, or shipping routes. Rising long-term rates could pressure its valuation multiple, but its net cash balance and moderate growth profile limit the impact. There are no specific regulatory or geopolitical risks affecting the company.
Is Dynatrace stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 228% above the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 119.6 | 31.3 | +282% |
| EV / EBITDA | 56.1 | 20.4 | +175% |
| Price / book | 7.1 | 6.3 | +13% |
| Price / sales | 8.2 | 5.3 | +56% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.7 out of 10 (median for Technology: 5.3).
Average analyst target: 59.97 USD, +0.3% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 6.7 (sector 6.4), Growth 4.5 (sector 7.5).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 119.6
- Forward P/E
- 26.1
- EV / EBITDA
- 56.1
- Price / book
- 7.1
- Price / sales
- 8.2
- PEG
- 1.24
- Market cap
- 17.3B USD
- Enterprise value
- 16.3B USD
Profitability
- ROE
- 5.9%
- ROA
- 4.2%
- ROIC (approx.)
- 10.4%
- Gross margin
- 81.6%
- Operating margin
- 12.9%
- Net margin
- 7.2%
- Free cash flow
- 546.5M USD
- FCF yield
- 3.2%
- Cash conversion
- 188%
Solvency
- Total debt
- 159.3M USD
- Net debt
- −949.6M USD
- Cash
- 1.1B USD
- EBITDA
- 291.4M USD
- Net debt / EBITDA
- −3.26
- Debt / equity
- 6.50
- Current ratio
- 1.21
- Quick ratio
- 1.04
Growth
- Revenue growth
- +16.2%
- Earnings growth
- −24.9%
- EPS (TTM)
- 0.50 USD
- EPS (forward)
- 2.29 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.77
- Analyst consensus
- Buy (34)
- Target price
- 59.97 USD
- 52-week range
- 31.64 – 61.58
Recent news
All DT news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Dynatrace
Is Dynatrace stock cheap or expensive?
On P/E and EV / EBITDA, it trades 228% above the Technology median on average. Valuation score: 3.7 out of 10 (median for Technology: 5.3). Average analyst target: 59.97 USD, +0.3% versus the price. This is not investment advice.
What score does Dynatrace get on MeridIAn Screener?
It scores 5.7 out of 10, rank 1,234 of 2,130 (better than 39% of the companies analysed). Its strongest category is Risk & Context (7.5) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Dynatrace's P/E ratio?
Its P/E is 119.6: the share price equals 119.6 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 26.1.
How much is Dynatrace worth on the stock market?
Its market capitalisation is 17.3B USD and its enterprise value, debt included, is 16.3B USD.
How much debt does Dynatrace have?
It has more cash than debt: net cash of 949.6M USD.
Does Dynatrace pay a dividend?
It pays no dividend, or almost none.
How has Dynatrace stock performed over the last year?
It has risen 24.7% over the last year, excluding dividends. Over the last 52 weeks it has traded between 31.64 and 61.58 USD. Past performance does not guarantee future results.
What do analysts think of Dynatrace?
34 analysts cover it; their average recommendation is “Buy” and their average target is 59.97 USD (+0.3% versus the price). It is an estimate, not market data.