DoorDash, Inc. Class A Common Stock (DASH)

Conclusion

DoorDash operates a commerce platform that connects merchants, consumers and delivery drivers ("dashers") across the United States and internationally, through its DoorDash, Wolt and Deliveroo marketplaces. At a price of 180.96 USD on 9 November 2026, the company has a market capitalisation of 74.6 billion USD and an enterprise value of 71.9 billion USD.

The verdict is fair. The fair value band runs from 129.16 to 193.74 USD with a midpoint of 161.45 USD, giving a margin of safety of -10.8% at the current price. Today's P/FCF of 31.7x sits well below its ten-year median of 63.9x, and P/S of 4.4x is below its median of 6.4x, while P/E of 70.2x and EV/EBITDA of 32.0x have too few historical points to compare. The discounted cash flow gives 58.92 USD per share at a discount rate of 14.7%, far below the price. The fair value from historical multiples is 263.99 USD, which is much higher. The reverse DCF implies revenue growth of 32.9% a year, and the comparison with five-year revenue growth reads -3.7%, so the price already assumes growth close to what the company has delivered.

What supports the case is a net cash balance (net debt to EBITDA of -1.19), a Altman Z-score of 5.41 and a five-year revenue growth rate of 36.6%. The weakest numbers are the five-year share count increase of 6.4% a year, an ROIC of 13.7% that sits just below its WACC of 14.4%, and a DCF value of 58.92 USD that is well below the price. If revenue growth slows sharply, or if the share count keeps rising, the current price becomes harder to justify.

Financial health

Financial strength is green, supported by a net cash position, a current ratio of 1.46 and a Altman Z-score of 5.41. The current ratio is 1.46 and the quick ratio is 1.13, with net debt to EBITDA of -1.19 (net cash) and debt to equity of 0.31, all as of 30 September 2026. The company does not report its interest expense, so interest coverage is not available. The Altman Z-score of 5.41 falls in the safe zone, although the Altman model was designed for manufacturers and DoorDash is not one. Insolvency risk is low, at about 0.2% by the estimate of the Ohlson model over one to two years, based on statements as of 31 December 2025.

Earnings quality

Earnings quality is yellow. Free cash flow conversion is strong at 2.21x on a trailing twelve-month basis, and the accrual ratio of -9.2% points to cash earnings exceeding reported profit. Stock-based compensation is 6.6% of revenue, and free cash flow after it is 1.23 billion USD. The five-year share count compound growth of 6.4% a year is a clear negative. The five-year free cash flow conversion is not available. The Piotroski score is 5 out of 8 evaluable points, and the Beneish M-score is not available. Over the last eight quarters the company beat estimates four times and missed three times, with an average surprise of 156.4%. Current-year estimates rose 7.8% over 90 days with 20 upward revisions and none downward, while next-year estimates rose 2.9% with 13 upward and 7 downward revisions.

Profitability

Profitability is yellow. The gross margin is 51.9% against a ten-year median of 47.6%, and the operating margin of 7.0% sits well above its median of -12.2%. The net margin of 6.2% compares with a median of -12.8%. Margin stability is 1.23. ROIC is 13.7% against a WACC of 14.4%, and the given ROIC minus WACC value is -0.75%, classed as neutral. The five-year median ROIC is -17.6%. Return on equity is 9.9%. The DuPont split for 2025 shows a net margin of 6.8%, an asset turnover of 0.70 and an equity multiplier of 1.96, so the return comes from margins rather than leverage.

Growth

Growth is green. Revenue has compounded at 27.7% a year over three years and 36.6% over five years. Revenue grew in all seven comparable years. Free cash flow per share has compounded at 353.6% over three years and 76.5% over five years, although the three-year figure reflects a low base. The ten-year growth rate is not available. Next year's EPS estimate implies growth of 38.1%, but EPS growth over three and five years is not available.

Valuation

Valuation is yellow, with one neutral signal and nothing favourable. Against their ten-year medians, the P/FCF of 31.7x is a premium of -50.3%, P/S of 4.4x is -31.5% and P/B of 7.0x is -7.9%. P/E of 70.2x and EV/EBITDA of 32.0x have only two historical points each, so no median comparison is made. The discounted cash flow is 58.92 USD per share at a discount rate of 14.7%, with the terminal value making up 41.7% of it. The fair value band runs from 129.16 to 193.74 USD around a midpoint of 161.45 USD, with a margin of safety of -10.8% at 180.96 USD. This band is an order of magnitude built on fixed assumptions, a 5% equity risk premium and capped growth, and is not a price target. The reverse DCF implies growth of 32.9% against five-year revenue growth of 36.6%, which is close to what was delivered. The company pays no dividend.

Risks

Each weak number carries a specific risk. A five-year share count increase of 6.4% a year dilutes shareholders unless buybacks offset it, and stock-based compensation of 6.6% of revenue is a real cost. ROIC just below WACC means the company does not yet earn more than its cost of capital. A DCF value of 58.92 USD sits far below the price, so the case depends on the growth assumptions behind the reverse DCF. The beta of 1.97 means the share price may move much more than the broader market. The company does not report its interest expense, so interest coverage and the cost of debt, which is assumed at 6.9%, cannot be checked. The five-year free cash flow conversion and the Beneish M-score are not available. This analysis has no debt maturity schedule and no revenue split by segment, so it cannot assess refinancing risk or which markets drive growth.