Is GoDaddy Inc. (GDDY) overvalued or undervalued?
Updated Nov 10, 2026 · hand-researched model · educational, not advice
At a recent price of $111.71, GoDaddy Inc. (GDDY) trades 35% below TickerWorth's blended fair value of $172.40 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices GDDY undervalued vs our estimate of what the business is intrinsically worth. Our fair value sits above the market, an implied +54.3% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values GDDY at about $128.99 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts GoDaddy Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 8.8%, with a long-run terminal growth rate of 2.5%. About 75% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 0.1% annual revenue growth for GDDY. Our base case instead compounds to about 4.5% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, GDDY's modeled DCF value ranges from about $89.55 to $220.16 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what GoDaddy Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of GDDY's intrinsic value. Figures update as new filings and prices come in.
The assumptions behind GDDY's DCF
| Input | Value | Source |
|---|---|---|
| Base-year revenue | $4,951,100,000 | GoDaddy FY2025 10-K (accession 0001609711-26-000010, filed 2026-02-25): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025: Applications & Commerce $1,889.0M (+14%) + Core Platform $3,062.1M (+5%) = $4,951.1M, +8.3% on FY2024's $4,573.2M. Calendar fiscal year. No acquisitions in FY2024 or FY2025 (PaymentsToAcquireBusinesses = 0), so this growth is organic. CROSS-CHECK, latest quarter: H1 2026 revenue $2,564.9M, +6.3% YoY (Q2 $1,298.0M, +6.6%; +6.3% constant currency). Growth is decelerating — FY2024 +7.5%, FY2025 +8.3%, H1 2026 +6.3% — and BOOKINGS, which lead revenue because customers pay up front, grew only +4.2% in H1 2026 (Q2 +5.7%). UNCHANGED as the base; the slowdown belongs in the forecast. |
| Base EBIT margin | 22.8% | GoDaddy Q4 2025 earnings release, 8-K Ex-99.1 (accession 0001609711-26-000008, filed 2026-02-24): GAAP operating income $1,127.3M / revenue $4,951.1M = 22.77%. GAAP, so it is AFTER $317.8M of stock-based compensation (6.4% of revenue), $11.1M of restructuring and $116.6M of D&A. Not the company's 'NEBITDA' (32.0%), which adds back SBC. CROSS-CHECK, H1 2026: operating income $653.0M / $2,564.9M = 25.5%, up 420bp YoY. About 1pp of that rise is acquired-intangible amortization rolling off (H1 amortization $18.7M vs $38.1M — 10-Q) and ~0.9pp is lower SBC; the rest is genuine operating leverage (marketing, G&A and tech spend all flat-to-down against +6% revenue). |
| Forecast revenue growth | 6% → 5% → 4% → 4% → 4% | Assumption — TickerWorth's 5-year explicit forecast |
| Risk-free rate | 5.2% | US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; the program-wide rate shared by every researched model in this run. |
| Beta | 0.94 | yfinance 5Y-monthly beta: Published 5-year monthly beta 0.94, used as-is. Considered and rejected: normalizing UP for the 2026 de-rating (the shares roughly halved from late-2025 levels on AI-disintermediation fears) — that drawdown was company-specific and a monthly regression already contains it. A beta of 1.2 would take the value to ~$108; noted as the main discount-rate sensitivity. |
| Terminal growth | 2.5% | Assumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. This is the contested input for GoDaddy: the market's worry is that AI agents and search change how small businesses get online and buy domains. A 2.0% terminal rate gives ~$120; 0.5% gives ~$100. Well below the 8.78% WACC. |
| Diluted shares | 131M | GoDaddy Q2 2026 10-Q (accession 0001609711-26-000088, filed 2026-07-31): Q2 2026 weighted-average diluted shares 130,994K (basic 130,764K). HEAVY BUYBACKS MAKE THIS STALE IN A KNOWN DIRECTION: shares outstanding were 126,834K at 2026-06-30 (from 134,737K at year-end), and GoDaddy bought back 9.8M shares for $851.8M YTD through 2026-07-29 under a $3.0B authorization running to end-2027 ($1,331.6M left at 2026-06-30). Using the period-end count instead would add ~$4.20/share. The weighted figure is kept per house convention; DIRECTION: conservative. |
| Market price | $111.71 | Delayed quote · as of 2026-11-10 06:01 UTC |
Explore more
Most undervalued stocks (per our valuation) · Undervalued Technology stocks · All valued stocks · Interactive GDDY valuation & downloadable modelTickerWorth is an educational DCF tool, not a licensed investment adviser. Figures are estimates derived from public filings and market data and can be wrong.