One-glance verdict
Undervalued
$311.49 our estimate vs market $89.32
Wall Street consensus: $112.14 (-64.0% lower than our fair-value estimate)
71% below our estimate, below the bear case
Fundamentals snapshot
GoDaddy Inc.
GDDY · NYQ · Technology · Software - Infrastructure
Current price
$89.32
52-week range
$71.59 - $177.84
Market cap
$11.83B
Balance sheet
Distressed
7.54x Adequate
Net debt $2.54B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.5% last year.
- Reward Returns 398.2% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 1.0% (peer median: 7.7%).
What this company does
GoDaddy Inc.
GoDaddy provides the essential tools for small businesses to get online, like website addresses (domains), website-building software, and marketing services. They make most of their money from subscriptions for these services, which creates predictable, recurring revenue (income that comes in regularly) and helps them build a complete system, or ecosystem (a network of connected products), to keep customers engaged.
How the company got here
GoDaddy was started in 1997 by Bob Parsons, first as Jomax Technologies, to make it easier and more affordable for people to get a domain name (a unique web address like google.com). The company grew by expanding its services beyond just domain names to include things like website building tools and web hosting (the service that keeps a website online). Known for its memorable Super Bowl ads, GoDaddy quickly became the world's largest registrar for domain names. In 2015, the company became publicly traded on the New York Stock Exchange, which allowed it to raise money to grow even more.
What it actually does
GoDaddy provides the essential tools for individuals and small businesses to create an online presence. Think of it as a one-stop-shop for getting a business online. You can buy a custom web address (a domain name), build a website using their tools, get a professional email address that matches your domain, and even get help with marketing your business to attract customers. They also offer services to keep websites secure and tools for businesses to sell products and accept payments both online and in-person.
Core Platform
This is GoDaddy's original and largest business, making up the majority of its revenue. It's focused on the foundational needs of getting online. This includes selling domain names, which is the unique address for a website, and providing hosting services, which is the space on the internet where a website's files are stored. This segment also sells security products like SSL certificates (which make a website connection secure) to protect a website and its visitors. Customers are typically individuals or small businesses paying a recurring fee for these essential internet services.
Applications and Commerce
This part of the business provides the tools to build and manage an online business and is a faster-growing slice of the company's revenue. This includes website building software that lets people create their own sites without needing to know how to code, and professional email services that match a customer's domain name. It also offers marketing tools to help businesses get found on search engines and products that help businesses sell online and in-person, including payment processing systems. Customers pay for these services to enhance their website and grow their business.
What management is betting on now
GoDaddy's leadership is focused on being the all-in-one platform for small businesses. A major priority is growing their 'Applications and Commerce' business by encouraging customers who buy a domain name to also use their website building, marketing, and payment tools. They are also investing heavily in artificial intelligence (AI) with tools like GoDaddy Airo, which can help automatically create logos, websites, and marketing content for entrepreneurs. The company also sees a big opportunity in expanding its services to more customers around the world.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$292.00M
FY2024 Q3
$350.20M
FY2024 Q4
$326.10M
FY2025 Q1
$401.10M
FY2025 Q2
$375.80M
FY2025 Q3
$434.90M
FY2025 Q4
$363.70M
FY2026 Q1
$466.90M
Revenue
$1.27B
Net income
$214.60M
Diluted EPS
1.60
Operating cash flow
$471.50M
Free cash flow
$466.90M
Fetching…
Sources
Revenue
$1.27B
Net income
$245.10M
Diluted EPS
1.79
Operating cash flow
$370.60M
Free cash flow
$363.70M
Fetching…
Sources
Revenue
$1.27B
Net income
$210.50M
Diluted EPS
1.51
Operating cash flow
$444.20M
Free cash flow
$434.90M
Fetching…
Sources
Revenue
$1.22B
Net income
$199.90M
Diluted EPS
1.41
Operating cash flow
$379.90M
Free cash flow
$375.80M
Fetching…
Sources
Revenue
$1.19B
Net income
$219.50M
Diluted EPS
1.51
Operating cash flow
$404.70M
Free cash flow
$401.10M
Fetching…
Sources
Revenue
$1.19B
Net income
$198.60M
Diluted EPS
6.45
Operating cash flow
$340.50M
Free cash flow
$326.10M
Fetching…
Sources
Revenue
$1.15B
Net income
$190.50M
Diluted EPS
1.32
Operating cash flow
$355.20M
Free cash flow
$350.20M
Fetching…
Sources
Revenue
$1.12B
Net income
$146.30M
Diluted EPS
1.01
Operating cash flow
$294.80M
Free cash flow
$292.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $311.49 vs current price $89.32
Wall Street consensus is the average analyst price target: $112.14 (-64.0% lower than our fair-value estimate).
Our most-likely fair value is $311.49 a share — about 248.7% above today's price of $89.32, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $2.5B. Interest coverage 7.5x.
Net debt
$2.54B
Interest coverage
7.54x
GoDaddy Inc.'s profit covers its interest bill about 7.5 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
GDDY
BASELINE
GoDaddy Inc.
Total debt $3.85B Interest coverage 7.54x This is the baseline the peer rows are being compared against.
Total debt $1.59B Interest coverage 0.46x -94% vs GDDY Carries about 16.5x less debt cushion than GDDY.
Total debt $179.00M Interest coverage 1,639.13x +21,642% vs GDDY Carries about 217.4x more debt cushion than GDDY.
Total debt $1.79B Interest coverage 13.46x +79% vs GDDY Carries about 1.8x more debt cushion than GDDY.
Total debt $695.54M Interest coverage -0.33x -100% vs GDDY This peer has almost no interest-payment cushion compared with GDDY.
What you should know
The case for and against GDDY
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.5% last year.
-
Returns 398.2% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 1.0% (peer median: 7.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.16x
Forward P/E
8.29x
P/B
49.93x
P/S
2.35x
EV/EBITDA
10.95x
PEG ratio
0.68x
Profitability
How much profit each dollar creates
Gross margin
63.8%
Operating margin
24.7%
Net margin
17.3%
ROE
398.2%
ROA
9.4%
Health
Liquidity and balance-sheet strength
Debt / equity
16.22x
Current ratio
0.67x
Quick ratio
0.46x
Total debt
$3.85B
Total cash
$1.31B
Growth
How the business has been compounding
Revenue TTM
$5.02B
Revenue 5Y CAGR
6.7%
EPS TTM
6.31
EPS 5Y CAGR
41.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.67B
Free CF TTM
$1.58B
FCF margin
31.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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