Shares of Dynatrace (DT, Financial) saw a notable increase of 5.7% today, driven by optimism from Elastic's positive third-quarter performance. Elastic's unexpected success and upward revision in full-year guidance have sparked interest in related SaaS and observability firms, benefiting Dynatrace.
Dynatrace Inc (DT, Financial), a leader in cloud-native observability solutions, continues to showcase strong financial fundamentals. The company's current stock price is $55.46, with a market cap of approximately $16.55 billion and a price-to-earnings ratio of 100.84. Despite facing three medium warning signs and no severe ones, Dynatrace benefits from four positive indicators, notably its robust financial strength and strong Altman Z-Score of 8.48, implying low bankruptcy risk.
The company exhibits solid growth metrics, with a 12.1% EBITDA growth over the past year and significant revenue growth figures, including 18.2% over the past year and 25% over five years, reflecting a promising trajectory in its operating performance. However, the price-to-book ratio stands at 7.72, indicating a valuation premium compared to its tangible assets.
Looking at the valuation aspect, Dynatrace (DT, Financial) is regarded as "Fairly Valued" with a GF Value of $60.05. The GF Value estimation suggests a moderate upside potential from the current levels. For more detailed insights, visit the GF Value page.
Despite a favorable growth outlook, potential investors should be mindful of Dynatrace's high valuation metrics, such as a forward PE of 41.81 and a PEG ratio of 4.61, which may suggest that future growth expectations are already priced in. However, the company's strong cash-to-debt ratio of 12.47 and efficient interest coverage indicate solid financial health to support its growth initiatives.
