DoorDash Stock To $138?

DoorDash (DASH) stock has fallen 17% during the past day, and is currently trading at $196.46. Our multi-factor assessment suggests that it may be time to reduce exposure to DASH stock. We are primarily concerned current valuation and a price of $138 may not be out of reach. 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.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $84 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 27.8% over the last 3 years
• Its revenues have grown 24% from $10 Bil to $13 Bil in the last 12 months
• Also, its quarterly revenues grew 27.3% to $3.4 Bil in the most recent quarter from $2.7 Bil a year ago.

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

[3] Profitability Appears Moderate

• DASH last 12 month operating income was $695 Mil representing operating margin of 5.5%
• With cash flow margin of 20.0%, it generated nearly $2.5 Bil in operating cash flow over this period
• For the same period, DASH generated nearly $863 Mil in net income, suggesting net margin of about 6.8%

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 $84 Bil. This implies Debt-to-Equity Ratio of 3.8%
• DASH Cash (including cash equivalents) makes up $4.2 Bil of $18 Bil in total Assets. This yields a Cash-to-Assets Ratio of 23.6%

[5] Downturn Resilience Is Moderate

DASH saw an impact slightly 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 $281.74 on 6 October 2025 , and currently trades at $196.46

 
2020 Covid Pandemic

• DASH stock fell 26.0% from a high of $189.51 on 9 December 2020 to $140.20 on 30 December 2020 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 12 January 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.

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