Buffett Brain · Research note
Score updated 26 Sept 2026
GDDY· Technology
GoDaddy
GoDaddy's 20.4% ROIC is top-quintile in tech, but debt levels and valuation metrics require careful scrutiny.
Buffett fit
Partial fit
Owner
69
Durability
75
Management
69
Price
89
Score updated 26 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of GoDaddy would involve focusing on its high of 20.4% and leveraging its strong generation, which grew 24.93% year-over-year.
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GoDaddy's durability is supported by its consistent profitability over the past five years and an EPS CAGR of 44.8%.
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GoDaddy's is effective, with a yield of 9.19% and a market cap increase vs.
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GoDaddy's yield of 13.48% suggests a reasonable valuation, especially with an EV/ of 12.6.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
7- 1 of 20.4% places GoDaddy in the top quintile of the technology sector.
- 2 of 23.9% is significantly above the sector's top-quintile cutoff of 18.0%.
- 3EPS CAGR of 44.8% over five years indicates strong earnings growth.
- 4Share count has decreased by 5.23% CAGR over five years, reflecting effective .
Concerns
6- 1Current ratio of 0.67 suggests potential liquidity constraints.
- 2 of 59.8% is below the sector's top-quintile cutoff of 60.6%.
- 3Debt/Equity ratio of 16.22 indicates high relative to equity.
- 4Net debt/EBITDA of 1.93 is close to the upper comfort limit for .
Price history
$115+65.9%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
GoDaddy Inc. generates revenue through domain registration, web hosting, and various cloud-based services. The company boasts a strong of 23.9%, placing it in the top quintile within its sector. Its revenue growth is steady at 6.73% CAGR over five years. With a focus on subscription-based services, GoDaddy enjoys predictable cash flows, evidenced by a /Net Income ratio of 1.80.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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