GDDY
GoDaddy Inc.$85.32
Hold
Target $98.53
Report: Mar 07, 2026Technology • Software - Infrastructure • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$85.32+15.5%
Rec: HoldConviction: Medium
Entry Target
$75.79
(11% below current)
Fair Value
$98.53
(15% above current)
Stop Loss
$82.50
(3% below current)
Position Size
Starter
Time Horizon
Long-Term
Key Metrics
Live Snapshot
Market Data
52 Week High$193.55
52 Week Low$73.06
Avg. 3 Month Volume2.17M
Efficiency
LTM Gross Margin63.6%
LTM EBITDA Margin26.0%
LTM EBIT Margin23.7%
LTM Operating Margin28.6%
LTM ROA10.9%
LTM ROE384.2%
LTM ROIC35.0%
LTM ROCE22.7%
Capital Structure
Market Cap (MM)$11.0B
Enterprise Value (MM)$13.8B
Shares Outstanding134.87M
Total Debt (MM)$3.84B
Cash & Equivalents (MM)$1.08B
LTM Net Debt (MM)$2.76B
LTM Net Debt/EBITDA2.1x
Growth
TTM Rev. Growth8.3%
Last 3-Yr Rev. CAGR6.6%
Last 3-Yr EBITDA CAGR22.7%
Last 3-Yr EPS CAGR41.4%
Valuation
Street Target Price$128.50
LTM EV/Revenue2.8x
LTM EV/Gross Profit4.4x
LTM EV/EBIT11.8x
LTM EV/EBITDA10.7x
LTM P/E12.6x
LTM EV/FCF8.8x
LTM P/FCF7.0x
LTM P/TB3.2x
LTM P/B51.3x
Dividend Yield0.0%
Payout Ratio0.0%
Executive SummarySituation: Current price is $85.32 versus fair value $98.53 (15.5% expected return), and valuation confidence is stable. Debate: Bull case depends on General Availability of Airo.ai. Bear case centers on Moat Erosion from AI Disruption. Conclusion: Recommendation is Hold with Starter sizing and Long-Term horizon.
Bull Case
AI-driven efficiencies are expected to expand normalized EBITDA margins to 33% by 2026; aggressive share repurchases continue to drive double-digit EPS growth despite modest top-line expansion.
Bear Case
Aggressive promotional pricing for 1-year domains is eroding operating margins (down 240 bps YoY); massive insider selling suggests leadership believes the stock is fully valued or faces undisclosed headwinds.
Key Catalysts
Mid-Term (6-18 months)Impact: High
General Availability of Airo.ai. This will validate the monetization potential of the agentic OS and likely drive a re-acceleration in Appli...
Near-Term (0-6 months)Impact: Moderate
Stabilization of Operating Margins. Reconciling the 150-bp AI efficiency claim with GAAP results will restore market confidence in the cost-...
Long-Term (18+ months)Impact: Moderate
GoDaddy is relevant now because it is at the inflection point of its AI transition, while simultaneously facing a significant valuation disc...
Primary Risks
Concern: Medium
Moat Erosion from AI Disruption. New AI-native competitors could offer automated business setup for free, bypassing the domain registration...
Concern: High
Governance and Alignment Risk. Continued insider selling at prices above the current market suggests a lack of confidence in the long-term u...
Concern: Medium
Stewardship is a primary concern. The Governance Outcome Tree suggests: 1. Status Quo: Management continues to sell while the company buys,...
Recent Activity
2026-02-26Analyst Target
+8.95%Firm: Evercore ISI Analyst: Mark Mahaney Price Target: $95.00 Price When Posted: $79.12 Implied Upside: +20.1%
2026-02-25SEC Filing (8-K)
-14.28%GoDaddy reported Q4 2025 revenue of $1.27 billion, up 7% YoY, with net income of $245 million and 12% growth in normalized EBITDA.
2025-10-31SEC Filing (SC 13G/A)
+5.04%Vanguard Group reports 13.66% beneficial ownership of GoDaddy Class A common stock
2025-08-08SEC Filing (8-K)
-11.25%GoDaddy reported Q2 2025 revenue of $1.22 billion, up 8% YoY, with net income of $200 million and 15% growth in normalized EBITDA.
2025-05-02SEC Filing (8-K)
-8.36%GoDaddy reports Q1 2025 earnings with 8% revenue growth and new $3B repurchase plan
Valuation Table
9.8/10Decision Grade
Scenario Range
$83
Bear
$145
Bull
$85