GoDaddy Inc.

Valuation Analysis

About the Company

GoDaddy Inc. engages in the design and development of cloud-based products in the United States and internationally. It operates in two segments: Applications and Commerce (A&C), and Core Platform (Core). The A&C segment offers applications products, including Websites + Marketing, a mobile-optimized online tool that enables customers to build websites and e-commerce enabled online stores; and Managed WordPress, a streamlined and optimized website building that allows customers to build and manage a WordPress site; marketing tools and services, such as GoDaddy Studio and search engine optimization designed to help businesses acquire and engage customers and create content; and digital marketing services include email marketing, reputation management, and development of brand guides. This s

GoDaddy Inc. Stock at a Glance

GoDaddy Inc. (GDDY) is currently trading at $76.24 with a market capitalization of $10.1B. The trailing P/E ratio stands at 12.08x, with a forward P/E of 7.08x. The 52-week range spans from $71.59 to $181.49; the current price is 58% below the yearly high. Year-over-year revenue growth stands at +6.1%. The net profit margin stands at 17.32%.

💰 Dividend

GoDaddy Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

14 analysts rate GoDaddy Inc. (GDDY) on consensus: None. The average price target is $114.29, implying +49.9% from the current price. Analyst price targets range from $83.00 to $190.00.

GoDaddy Inc.: The Investment Case in Detail

GoDaddy Inc. (GDDY) operates in the Technology — specifically Software - Infrastructure — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 63.77%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 398.21% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Free cash flow is positive and net margins stand at 17.32%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

The Bear Case

The debt-to-equity ratio of 1621.62% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valuation in Context

With a PEG ratio of 0.68, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 9.63x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 7.08x is meaningfully below the trailing 12.08x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 49.9% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (7.37%), higher leverage relative to equity.

Trading Data

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