Dynatrace, Inc. (DT)
Technology · NYQ · US
Fundamentals
Valuation and ratings
Dynatrace, Inc. trades at USD44.83, which is 60% above the USD17.84 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 63 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 81.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Dynatrace, Inc.
Dynatrace, Inc. engages in the advancement of observability for digital businesses, which transforms the complexity of modern digital ecosystems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates Dynatrace, an AI-powered observability platform, which provides solutions, including infrastructure, application, threat, and AI observability; digital experience; log analytics; application security; software delivery; and business analytics. It also offers implementation, consulting, and training services. The company markets its products through a combination of global direct sales team and a network of partners, including global system integrators (GSIs), cloud providers, resellers and technology alliance partners. It serves customers in various industries, including banking, financial services, government, insurance, retail and wholesale, transportation, and software. Dynatrace, Inc. was founded in 2005 and is headquartered in Boston, Massachusetts.
DT passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
12 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$190.89M · 0.1% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$132.92M · 0.1% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$116.87M · 0.1% of book
- Ken Griffin, CITADEL ADVISORS LLC$99.10M · 0.0% of book
- Steve Cohen, Point72 Asset Management, L.P.$69.74M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Dynatrace, Inc. (DT) undervalued?
Against our discounted cash flow estimate of USD17.84, DT at USD44.83 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own DT?
12 of the institutions we track reported a position in DT in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is DT's P/E ratio?
DT trades at 81.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for DT, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.