Overview Dividends

(DOCN) DigitalOcean Holdings - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US25402D1028

Compute, Storage, Networking, Databases, Kubernetes, GPU

DOCN EPS (Earnings per Share)

EPS Growth (3Y CAGR): 26.98%
EPS Trend (3Y Correlation): 87.7%

DOCN Revenue

Revenue Growth (3Y CAGR): 13.27%
Revenue Trend (3Y Correlation): 99.7%

Risk via 10d forecast
Volatility	67.1%
Value at Risk 5%th	102%

Reward
Sharpe Ratio	0.51
Alpha Jensen	-6.21

Character
Hurst Exponent	0.386
Beta	1.779

Drawdowns 3y
Max DD	60.28%
Mean DD	25.80%

Description: DOCN DigitalOcean Holdings November 09, 2025

DigitalOcean Holdings, Inc. (NYSE: DOCN) runs a developer-focused cloud platform across North America, Europe, Asia and other regions, delivering on-demand infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) tools such as compute, storage, networking, managed databases, Kubernetes, serverless functions, and a marketplace of pre-configured applications. The firm also offers AI/ML capabilities-including GPU-powered droplets, a GENAI deployment platform, bare-metal GPUs, and Jupyter Notebooks-to support use cases ranging from web hosting to fintech, gaming and cybersecurity.

Key quantitative signals (FY 2023) show revenue of roughly $540 million, a year-over-year growth rate of ~30 % and a gross margin near 71 %, reflecting the high-margin nature of cloud services. The company’s primary growth driver is the expanding SMB cloud market, which is projected to grow at a 14 % CAGR through 2028, while pricing pressure from larger hyperscalers (AWS, Azure, GCP) remains a material risk. Additionally, DigitalOcean’s average revenue per user (ARPU) has been rising modestly (~8 % YoY), indicating successful upselling of higher-tier services such as managed Kubernetes and AI workloads.

If you want a data-rich, side-by-side comparison of DigitalOcean’s valuation multiples, growth outlook, and competitive positioning, the ValueRay platform provides a concise research hub worth exploring.

DOCN Stock Overview

Market Cap in USD	4,527m
Sub-Industry	Internet Services & Infrastructure
IPO / Inception	2021-03-24
Return 12m vs S&P 500	4.24%
Analyst Rating	3.64 of 5

DOCN Dividends

Currently no dividends paid

DOCN Growth Ratios

CAGR	16.72%
CAGR/Max DD Calmar Ratio	0.28
CAGR/Mean DD Pain Ratio	0.65
Current Volume	2915.6k
Average Volume	2517k

Piotroski VR‑10 (Strict, 0-10) 7.0

Net Income (251.9m TTM) > 0 and > 6% of Revenue (6% = 51.8m TTM)

FCFTA 0.16 (>2.0%) and ΔFCFTA 9.55pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 4.93% (prev 49.70%; Δ -44.76pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.19 (>3.0%) and CFO 323.7m > Net Income 251.9m (YES >=105%, WARN >=100%)

Net Debt (93.9m) to EBITDA (255.6m) ratio: 0.37 <= 3.0 (WARN <= 3.5)

Current Ratio 1.13 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (103.0m) change vs 12m ago 0.43% (target <= -2.0% for YES)

Gross Margin 59.54% (prev 59.76%; Δ -0.22pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 53.13% (prev 49.56%; Δ 3.57pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 19.33 (EBITDA TTM 255.6m / Interest Expense TTM 11.7m) >= 6 (WARN >= 3)

Altman Z'' 0.93

(A) 0.02 = (Total Current Assets 367.6m - Total Current Liabilities 325.0m) / Total Assets 1.73b

(B) -0.04 = Retained Earnings (Balance) -69.4m / Total Assets 1.73b

(D) -0.04 = Book Value of Equity -70.3m / Total Liabilities 1.80b

Total Rating: 0.93 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 66.62

1. Piotroski 7.0pt = 2.0

2. FCF Yield 5.98% = 2.99

3. FCF Margin 32.01% = 7.50

4. Debt/Equity -4.75 = -2.50

5. Debt/Ebitda 0.37 = 2.40

6. ROIC - WACC (= -4.10)% = -5.12

7. RoE -153.0% = -2.50

8. Rev. Trend 99.67% = 7.47

9. EPS Trend 87.66% = 4.38

What is the price of DOCN shares?

As of November 14, 2025, the stock is trading at USD 45.19 with a total of 2,915,586 shares traded.
Over the past week, the price has changed by -4.01%, over one month by +14.32%, over three months by +42.33% and over the past year by +18.73%.

Is DigitalOcean Holdings a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, DigitalOcean Holdings (NYSE:DOCN) is currently (November 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 66.62 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of DOCN is around 40.79 USD . This means that DOCN is currently overvalued and has a potential downside of -9.74%.

Is DOCN a buy, sell or hold?

DigitalOcean Holdings has received a consensus analysts rating of 3.64. Therefor, it is recommend to hold DOCN.

Strong Buy: 3
Buy: 4
Hold: 6
Sell: 1
Strong Sell: 0

What are the forecasts/targets for the DOCN price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	52.7	16.7%
Analysts Target Price	52.7	16.7%
ValueRay Target Price	46.8	3.6%

DOCN Fundamental Data Overview November 10, 2025

Market Cap USD = 4.53b (4.53b USD * 1.0 USD.USD)
P/E Trailing = 19.792
P/E Forward = 16.6945
P/S = 5.2399
P/B = 67.9206
P/EG = 1.8713
Beta = 1.779
Revenue TTM = 864.0m USD
EBIT TTM = 226.4m USD
EBITDA TTM = 255.6m USD
Long Term Debt = 1.49b USD (from longTermDebt, last fiscal year)
Short Term Debt = 148.9m USD (from shortTermDebt, last quarter)
Debt = 330.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 93.9m USD (from netDebt column, last quarter)
Enterprise Value = 4.62b USD (4.53b + Debt 330.5m - CCE 236.6m)
Interest Coverage Ratio = 19.33 (Ebit TTM 226.4m / Interest Expense TTM 11.7m)
FCF Yield = 5.98% (FCF TTM 276.5m / Enterprise Value 4.62b)
FCF Margin = 32.01% (FCF TTM 276.5m / Revenue TTM 864.0m)
Net Margin = 29.15% (Net Income TTM 251.9m / Revenue TTM 864.0m)
Gross Margin = 59.54% ((Revenue TTM 864.0m - Cost of Revenue TTM 349.6m) / Revenue TTM)
Gross Margin QoQ = 59.63% (prev 59.87%)
Tobins Q-Ratio = 2.68 (Enterprise Value 4.62b / Total Assets 1.73b)
Interest Expense / Debt = 1.53% (Interest Expense 5.04m / Debt 330.5m)
Taxrate = 56.32% (50.9m / 90.3m)
NOPAT = 98.9m (EBIT 226.4m * (1 - 56.32%))
Current Ratio = 1.13 (Total Current Assets 367.6m / Total Current Liabilities 325.0m)
Debt / Equity = -4.75 (negative equity) (Debt 330.5m / totalStockholderEquity, last quarter -69.6m)
Debt / EBITDA = 0.37 (Net Debt 93.9m / EBITDA 255.6m)
Debt / FCF = 0.34 (Net Debt 93.9m / FCF TTM 276.5m)
Total Stockholder Equity = -164.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 14.60% (Net Income 251.9m / Total Assets 1.73b)
RoE = -153.0% (negative equity) (Net Income TTM 251.9m / Total Stockholder Equity -164.6m)
RoCE = 17.14% (EBIT 226.4m / Capital Employed (Equity -164.6m + L.T.Debt 1.49b))
RoIC = 7.66% (NOPAT 98.9m / Invested Capital 1.29b)
WACC = 11.76% (E(4.53b)/V(4.86b) * Re(12.57%) + D(330.5m)/V(4.86b) * Rd(1.53%) * (1-Tc(0.56)))
Discount Rate = 12.57% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 5.81%
[DCF Debug] Terminal Value 68.13% ; FCFE base≈205.5m ; Y1≈253.5m ; Y5≈432.4m
Fair Price DCF = 41.31 (DCF Value 3.78b / Shares Outstanding 91.5m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 87.66 | EPS CAGR: 26.98% | SUE: 1.53 | # QB: 6
Revenue Correlation: 99.67 | Revenue CAGR: 13.27% | SUE: 2.11 | # QB: 1

Additional Sources for DOCN Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle