GDDY — GoDaddy Inc.
Snapshot dated August 27, 2026.
GoDaddy Inc. provides a digital platform for small businesses, organizations, and individuals to create and manage their online presence. The company operates through two primary segments: Applications & Commerce, which includes tools for website building, e-commerce, and email marketing, and Core Platform, which centers on domain registration and aftermarket domain sales. Serving over 21 million customers globally, the firm manages hundreds of millions of domain names across its international footprint. It maintains a leading position in the domain registration market, competing against entities like Namecheap and Google Domains, while expanding its footprint in business software services. Recently, the company has focused on integrating generative artificial intelligence across its product suite to simplify website creation and customer engagement for non-technical users.
Fair Value / Share
$188.38
Price on August 27, 2026
$96.97
Margin of Safety
94.28%
Data by Equibles and SEC filings. Figures are as of August 27, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$96.97
Market Cap
$12,701,833,210
Net Income (TTM)
$910,300,000
Diluted Shares
131.0 million
EPS (TTM)
$6.95
Earnings Yield
7.17%
AI Analysis
GoDaddy currently displays an earnings yield of 7.17%, derived from an EPS of $6.95 and a stock price of $96.97. This figure sits notably above the 4-5% return benchmark commonly associated with safe, guaranteed alternatives like bonds. Mechanically, this yield implies that for every dollar of the company's current annual earnings, the market is pricing the shares at a level that generates a higher immediate return than the bond alternative, suggesting the market is not pricing in significant, rapid earnings growth expectations relative to these alternatives. For the yield to change, the EPS would need to rise or fall, or the share price would need to adjust. This measure does not capture future earnings trajectory, debt obligations, or non-recurring items impacting net income.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$1,266,700,000
Net Working Capital
-$2,288,600,000
Net Fixed Assets
$140,100,000
Invested Capital
-$2,148,500,000
Return on Capital
Capital-free operations
This business operates on negative invested capital — customers pay in advance, so the business funds itself rather than tying up capital. Combined with positive EBIT, that is the strongest possible outcome in this framework, not a missing result.
AI Analysis
For GoDaddy (GDDY), the Return on Capital framework identifies a unique situation where invested capital is negative, measured at -$2.1B, while EBIT is positive at $1.3B. These figures are derived from net working capital of -$2.3B and net fixed assets of $140.1M. Because the denominator is negative, the standard ratio is mathematically undefined. Within this framework, however, this represents the strongest outcome possible rather than an error or missing signal. It indicates that the company generates significant operating profit without requiring any of its own capital to function. This typically occurs when customers pay for services in advance, effectively funding operations through deferred revenue. This measure tracks tangible operating efficiency but does not account for industry-specific capital intensity; a company reinvesting heavily in early-stage growth may display different capital requirements for reasons unrelated to core operational performance.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| GDDYGoDaddy Inc. | $1.3B | $15.3B | 12.1x |
| VRSNVERISIGN INC/CA | $1.2B | $28.3B | 24.4x |
Where GDDY sits: 12.1x against a peer median of 24.4x (peers: 24.4x) — 50.5% below the median.
Show the enterprise value bridge for each companyHide the enterprise value bridge
GDDY
Debt $3.8B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. It carries no separately reported lease obligations.
VRSN
Named as a competitor: Operates the .com and .net domain registries GoDaddy resells domain names through — one of GoDaddy's closest public comparables.
Debt $2.3B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. It carries no separately reported lease obligations.
Operating earnings — GDDY
AI Analysis
GoDaddy Inc. (GDDY) trades at an Acquirer's Multiple of 12.1x, derived from an enterprise value of $15.3B and operating earnings of $1.3B. Its competitor, VeriSign (VRSN), presents an Acquirer's Multiple of 24.4x, based on an enterprise value of $28.3B and operating earnings of $1.2B. Between these two, GoDaddy Inc. holds the lower multiple, while VeriSign carries the higher. Regarding the peer group, GoDaddy Inc. sits at 12.1x against a peer median of 24.4x (peers: 24.4x) — 50.5% below the median. This difference reflects how the market assesses the cost to acquire the operating earnings of each business, though the gap could shift if operating profit margins were to compress or expand significantly for either company, or if material changes were made to their respective capital structures.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
7/10
Decent score — worth a deeper look before investing.
Section 1
Current Profitability
3/3
This section is Strong, as the company is profitable on both an accounting and cash basis while showing high-quality earnings backed by actual cash inflows.
- Return on Assets is positive at 10.89%.
- Free Cash Flow to Total Assets is positive at 19.61%.
- Accruals are healthy with Cash Flow from Operations 1.83 times higher than Net Income.
A score of 3/3 indicates that current operations are generating surplus capital, and a drop in cash generation relative to accounting profits would be required to lower this result.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
2/3
This section is Mixed, reflecting a reduction in the share count alongside a slight increase in the debt burden relative to the asset base.
- Leverage rose slightly from 0.46 to 0.47, missing the requirement for flat or declining debt levels.
- Liquidity is improving because current assets cover non-deferred obligations 3.0 times over, despite a nominal current ratio of 0.61.
- Net Dilution is negative as diluted shares outstanding fell from 145.3 million to 140.6 million.
The score would improve if the company stabilized its long-term debt relative to total assets while maintaining its share repurchase activity.
Change in Leverage (↓ or unchanged)
FailChange in Liquidity (↑ Current Ratio)
PassCustomers pay in advance here: 80% of what this company owes within the year is revenue it has already collected but not yet delivered, not money it has to pay out. A current ratio below 1 is how this business model works, not a warning sign — setting that revenue aside, current assets cover the remaining obligations 3.0 times over.
Net Dilution (annual diluted weighted-average shares, this year vs last)
PassSection 3
Recent Operational Improvements
2/4
This section is Mixed, with the business showing better asset efficiency and cash generation even as profit margins and returns on assets softened slightly.
- Return on Assets declined year over year from 11.38% to 10.89%.
- Free Cash Flow to Total Assets improved from 15.31% to 19.61%.
- Gross Margin decreased from 63.88% to 63.61%.
- Asset Turnover improved from 0.56 to 0.62.
This score indicates shifting operational efficiency; a reversal in the downward trend of gross margins would be necessary to reach a higher result here.
Change in ROA (↑)
FailChange in FCFTA (↑)
PassChange in Gross Margin (↑)
FailChange in Asset Turnover (↑)
PassFramework conclusion
The total score of 7/10 suggests solid financial health, driven by strong current profitability and cash flow generation. While some operational trends like gross margin and return on assets have softened, the high cash-to-income profile and share count reduction suggest the business is not in a state of distress. This score helps distinguish whether the company's market pricing is a result of fundamental deterioration or a temporary fluctuation in operational metrics.
- The company generates 1.83 times more cash from operations than it reports in net income.
- Free Cash Flow to Total Assets improved significantly to 19.61%.
- Asset Turnover increased to 0.62, showing higher revenue generation per dollar of assets.
- Diluted shares outstanding were reduced to 140.6 million shares.
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$1.7B
+ After-Tax Interest Expense
$118.3M
= Unlevered Free Cash Flow
$1.8B
Business value (10-year DCF)
PV of Years 1–10
$13.9B
PV of Terminal Value
$13.4B
= Business Value
$27.3B
Business value → share value
Intrinsic Value (business)
$27.3B
+ Cash & Equivalents
$1.2B
− Debt
$3.8B
= Shareholders' Value
$24.7B
÷ Diluted Shares
131.0 million
= Fair Value / Share
$188.38
Divided by 131.0 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-06-30.
Risk bucket → discount rate
mid (12%)
Year-1 FCF
$1.8B
Growth rate (yrs 1–10)
8%
Terminal growth (after yr 10)
3%
AI Analysis
The valuation of GoDaddy begins with a year-one free cash flow of $1.8B, an unlevered figure representing the baseline for the next decade. To account for GoDaddy's stable subscription revenue balanced against its competitive hosting environment and debt levels, the model applies a 12% discount rate, which falls into the mid-risk bucket. This rate adjusts future cash flows for the inherent risks of a long-term forecast. For the growth phase, an 8.00% annual rate was chosen to moderate historical performance into a conservative ten-year outlook. Beyond year ten, the model employs a fixed 3% terminal growth rate—a standard cap applied to all companies in this framework to align with long-run economic growth expectations. The terminal value, representing the business's worth after the tenth year, accounts for 49.1% of the total business value. To arrive at the fair value per share, the intrinsic business value is adjusted by adding $1.2B in cash and subtracting $3.8B in total debt, before dividing the remaining $24.7B by the 131.0 million shares outstanding. This yields a fair value per share of $188.38. Relative to the current market price of $96.97, the model reflects a margin of safety of 94.28%. This figure serves as the built-in buffer for potential forecasting errors. The result is most sensitive to the 8.00% growth assumption; if the actual business growth deviates from this projection, the intrinsic value estimate will change accordingly.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
7.17% vs ~4-5% bond-yield benchmark
Return on Capital
Capital-free operations — negative invested capital, positive EBIT
Acquirer's Multiple
12.1x against a peer median of 24.4x (peers: 24.4x) — 50.5% below the median.
FS-Score
7/10 — Solid but mixed
Intrinsic Value
94.28% margin of safety
This assessment balances operational performance with current market pricing. The FS-Score of 7/10 indicates a business with mixed but generally stable operational health, while the Return on Capital reveals a unique scenario of negative invested capital producing positive EBIT, suggesting the company generates earnings without requiring traditional capital reinvestment. These quality indicators are measured against three valuation metrics: an Earnings Yield of 7.17% exceeding the bond-yield benchmark, an Acquirer’s Multiple of 12.1x that sits 50.5% below the peer median, and an Intrinsic Value estimate suggesting a 94.28% margin of safety. There is a clear alignment where both the operational and valuation frameworks point toward the same result, with the business appearing to generate earnings efficiently relative to its current price. If the FS-Score were to shift toward the lower end of its range, the overall assessment would change most significantly, as that would signal a deterioration in the underlying operational health despite the favorable valuation figures.