• If you are wondering whether DoorDash at around US$210 a share still offers value, or if most of the opportunity is already priced in, this article will help you frame that question clearly.
• The stock has recently seen a 6.2% pullback over 7 days and a 7.8% decline over 30 days, while the 1 year return sits at 23% and the 3 year return is about 3 times the starting level.
• These price moves sit against a backdrop of ongoing discussion around DoorDash's position in food delivery and related services, with investors weighing its market share and competitive pressures. Broader commentary has also focused on how delivery platforms fit into consumer spending trends and merchant partnerships, which can influence how investors think about the stock's risk and durability.
• Simply Wall St currently gives DoorDash a 3/6 valuation score. Next, we will walk through what different valuation approaches are saying about that number and outline a more complete way to judge value that ties it all together.

Approach 1: DoorDash Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes estimates of a company’s future cash flows and discounts them back to today, aiming to translate those future dollars into a single present value per share.

For DoorDash, Simply Wall St uses a 2 Stage Free Cash Flow to Equity model. The latest twelve month free cash flow is about $2.0b. Analyst estimates feed into projected free cash flow of $9.0b in 2030, with additional years after that extrapolated by Simply Wall St rather than based on direct analyst forecasts.

Based on these projections, the model arrives at an estimated intrinsic value of about $428.68 per share. Compared with a current share price around $210, this framework suggests the stock trades at roughly a 51.0% discount to that DCF estimate. On these cash flow assumptions the shares screen as materially undervalued.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests DoorDash is undervalued by 51.0%. Track this in your watchlist or portfolio, or discover 869 more undervalued stocks based on cash flows.

Approach 2: DoorDash Price vs Earnings

For a company that is generating positive earnings, the P/E ratio is a straightforward way to link what you pay per share to the profits that each share represents. It gives you a quick read on how many dollars investors are currently paying for one dollar of earnings.

What counts as a “normal” P/E depends heavily on how the market views a company’s growth potential and risk. Higher expected growth or lower perceived risk can support a higher P/E, while slower growth or higher risk usually lines up with a lower P/E.

DoorDash currently trades at a P/E of about 104.9x, compared with an average of 37.2x for peers and 22.0x for the wider Hospitality industry. Simply Wall St’s Fair Ratio framework estimates a P/E of around 50.7x for DoorDash, based on factors such as its earnings growth profile, industry, profit margins, market cap and company specific risks.

This Fair Ratio is more tailored than a simple peer or industry comparison because it adjusts for those company specific drivers rather than assuming all businesses deserve the same multiple. When compared with that 50.7x Fair Ratio, DoorDash’s current 104.9x P/E appears higher than what this model indicates.

Result: OVERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your DoorDash Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way for you to write the story you believe about DoorDash, turn that story into your own forecast for revenue, earnings and margins, and then see the fair value that falls out of those assumptions.

A Narrative on Simply Wall St connects three things: your view of the business, a financial model that reflects that view, and a fair value estimate that you can compare directly to the current share price to decide whether DoorDash looks closer to a buy, a hold, or a sell for you personally.

You can create and explore Narratives on the Simply Wall St Community page, where millions of investors share their views. Each Narrative is kept up to date automatically when new information arrives, such as company news or earnings reports altering revenue, margin or risk assumptions in real time.

For example, one investor might build a DoorDash Narrative that lines up with the more optimistic analyst assumptions and a fair value near US$360, while another might lean on the more cautious end around US$205. By seeing how those different stories translate into different fair values next to today’s price, you can use a clearer framework for what you believe and what you are willing to pay.

Do you think there's more to the story for DoorDash? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.