Wait for a dip to buy DoorDash stock

We believe there is not much to fear in DASH stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive. Here is our multi-factor assessment.

But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio and is designed to reduce stock-specific risk while giving upside exposure

Let’s get into details of each of the assessed factors but before that, for quick background: With $112 Bil in market cap, DoorDash provides a logistics platform connecting merchants, consumers, and drivers, offering services like customer acquisition, delivery, analytics, merchandising, payment processing, and customer support.

[1] Valuation Looks Very High

This table highlights how DASH is valued vs broader market. For more details see: DASH Valuation Ratios

[2] Growth Is Very Strong

• DoorDash has seen its top line grow at an average rate of 28.4% over the last 3 years
• Its revenues have grown 24% from $9.6 Bil to $12 Bil in the last 12 months
• Also, its quarterly revenues grew 24.9% to $3.3 Bil in the most recent quarter from $2.6 Bil a year ago.

This table highlights how DASH is growing vs broader market. For more details see: DASH Revenue Comparison

[3] Profitability Appears Weak

• DASH last 12 month operating income was $543 Mil representing operating margin of 4.6%
• With cash flow margin of 18.4%, it generated nearly $2.2 Bil in operating cash flow over this period
• For the same period, DASH generated nearly $781 Mil in net income, suggesting net margin of about 6.6%

This table highlights how DASH profitability vs broader market. For more details see: DASH Operating Income Comparison

[4] Financial Stability Looks Very Strong

• DASH Debt was $3.3 Bil at the end of the most recent quarter, while its current Market Cap is $112 Bil. This implies Debt-to-Equity Ratio of 2.9%
• DASH Cash (including cash equivalents) makes up $5.0 Bil of $17 Bil in total Assets. This yields a Cash-to-Assets Ratio of 29.5%

[4] Downturn Resilience Is Weak

DASH has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• DASH stock fell 82.5% from a high of $245.97 on 12 November 2021 to $43.06 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 30 June 2025
• Since then, the stock increased to a high of $270.99 on 7 August 2025 , and currently trades at $254.20

 
2020 Covid Pandemic

• DASH stock fell 47.5% from a high of $215.16 on 10 February 2021 to $112.99 on 12 May 2021 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 16 September 2021

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read DASH Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.