GICS Sector : Communication Services
DoorDash, Inc.operates a logistics platform that connects merchants, consumers, and dashers in the United States and internationally.It operates DoorDash and Wolt marketplaces, which provides an array of services that enable merchants to solve mission-critical challenges, such as customer acquisition, delivery, insights and analytics, merchandising, payment processing, and customer support; DashPass and Wolt+, a membership products; and offers DoorDash Drive and Wolt Drive, a white-label delivery fulfillment services; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels.
DoorDash reported a robust financial performance in Q3 2025, with revenues growing ahead of expectations. Although the actual EPS came out at $0.55, missing analyst estimates of $0.683, the company's core business continues to perform well, with growth accelerating for the fourth straight quarter. The EBITDA margin for the existing business, excluding Deliveroo, is expected to be up slightly compared to 2025. As Ravi Inukonda, CFO, noted, "the company's core business is performing well, with growth accelerating for the fourth straight quarter and improving unit economics."
Publication Date: Nov -06
The company's focus on improving the inputs of the experience, such as selection, quality, and affordability, has led to increased strength in the U.S. marketplace. The demand on underlying cohorts continues to be strong, with growing MAUs, order frequency, and subscription numbers. Existing cohorts are also continuing to engage with the company more, driving growth across multiple categories outside of grocery, convenience, and alcohol.
DoorDash is investing heavily in several areas, including a new global tech platform, new products, and autonomous delivery. The company is taking a pragmatic approach to autonomous delivery, focusing on multimodal fulfillment methods. The integration of Deliveroo is also a key focus, with the company aiming to improve the product and consumer experience, driving scale and unit economics. The expected cost synergies from scale and cost redundancy will take time to materialize.
With a P/S Ratio of 8.55 and an expected revenue growth rate of 21.4% next year, the market is pricing in significant growth expectations. The EV/EBITDA ratio of 89.15 also suggests that the market is expecting strong EBITDA growth in the future. However, the actual EPS miss and the high valuation multiples raise questions about whether the stock is overvalued. The ROE of 9.56% and ROIC of 4.26% indicate that the company is generating returns on its investments, but the high P/E Ratio of 129.55 suggests that the market is pricing in very high expectations for future growth.
Strategy Asset Managers LLC Takes $1.08 Million Position in DoorDash, Inc. $DASH
Feb -02
Wall Street Breakfast Podcast: Fed Chair Pick--Today?
Jan -30
Bank of New York Mellon Corp Has $589.10 Million Stake in DoorDash, Inc. $DASH
Jan -29
Uber and DoorDash Lose Bid to Quash NYC Tipping Law
Jan -25
Prabir Adarkar Sells 15,000 Shares of DoorDash (NASDAQ:DASH) Stock
Jan -24
Arkadios Wealth Advisors Takes Position in DoorDash, Inc. $DASH
Jan -24
Hibbett Launches on DoorDash, Bringing On-Demand Access to Footwear and Apparel Nationwide
Jan -22
DoorDash Could Be One of the Best Stocks for a K-Shaped Economy
Jan -21
Growing demand from busy consumers, increasing adoption of online ordering, and expansion into new markets drive DoorDash's growth, with a strong brand presence and strategic partnerships with restaurants and merchants.
DoorDash's core product, allowing customers to order food from their favorite restaurants and have it delivered to their doorstep.
A subscription-based service offering unlimited free delivery from participating restaurants for a flat monthly fee.
A logistics service that enables businesses to offer same-day delivery to their customers, leveraging DoorDash's network of Dashers.
A platform that allows restaurants to create their own online storefronts, enabling customers to order directly from their websites.
A premium food delivery service offering high-end cuisine from top-rated restaurants.
DoorDash's services can be substituted with other food delivery services like Uber Eats, GrubHub, and Postmates. However, DoorDash's strong brand recognition and large network of restaurants and drivers provide some protection against substitution.
Customers have some bargaining power due to the availability of alternative food delivery services. However, DoorDash's user-friendly platform and wide range of restaurant options reduce the bargaining power of customers.
Restaurants have some bargaining power due to their importance in DoorDash's business model. However, DoorDash's large scale and strong brand recognition reduce the bargaining power of individual restaurants.
The threat of new entrants is high due to the relatively low barriers to entry in the food delivery market. New entrants can easily replicate DoorDash's business model, posing a significant threat to the company.
The intensity of rivalry in the food delivery market is high due to the presence of several established players like Uber Eats, GrubHub, and Postmates. DoorDash faces intense competition in terms of pricing, service quality, and customer acquisition.
| Value | |
|---|---|
| Debt Weight | 7.12% |
| Debt Cost | 12.84% |
| Equity Weight | 92.88% |
| Equity Cost | 12.84% |
| WACC | 12.84% |
| Leverage | 7.67% |
Value: 1.0
Growth: 8.2
Quality: 8.2
Yield: 0.0
Momentum: 10.0
Volatility: 7.3
1-Year Total Return ->
Value: 4.5
Growth: 7.1
Quality: 5.8
Yield: 2.0
Momentum: 3.0
Volatility: 9.0
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Value: 1.8
Growth: 8.8
Quality: 8.3
Yield: 0.0
Momentum: 6.0
Volatility: 5.7
1-Year Total Return ->
Value: 3.7
Growth: 8.6
Quality: 8.9
Yield: 0.0
Momentum: 4.0
Volatility: 4.0
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Value: 0.5
Growth: 9.1
Quality: 6.4
Yield: 0.0
Momentum: 7.5
Volatility: 4.7
1-Year Total Return ->
Value: 5.5
Growth: 6.3
Quality: 4.0
Yield: 0.0
Momentum: 1.5
Volatility: 3.0
1-Year Total Return ->