(DOCN) DigitalOcean Holdings - Ratings and Ratios
Exchange: NYSE •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US25402D1028
Cloud, Compute, Storage, Kubernetes, Database
EPS (Earnings per Share)
Revenue
Dividends
Currently no dividends paid| Risk via 5d forecast | |
|---|---|
| Volatility | 55.4% |
| Value at Risk 5%th | 85.0% |
| Relative Tail Risk | -6.69% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.99 |
| Alpha | 22.18 |
| CAGR/Max DD | 0.42 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.461 |
| Beta | 1.997 |
| Beta Downside | 1.931 |
| Drawdowns 3y | |
|---|---|
| Max DD | 60.28% |
| Mean DD | 25.61% |
| Median DD | 25.80% |
Description: DOCN DigitalOcean Holdings January 12, 2026
DigitalOcean Holdings, Inc. (NYSE: DOCN) runs a developer-focused cloud platform spanning North America, Europe, Asia and other regions. It delivers on-demand infrastructure-as-a-service (compute, storage, networking) and platform-as-a-service tools such as managed databases, Kubernetes, serverless Functions, and a marketplace of pre-configured applications. The firm has recently expanded into AI/ML with GPU-powered droplets, a GENAI deployment platform, bare-metal GPUs, and Jupyter Notebook workspaces, targeting verticals like gaming, fintech and cybersecurity.
Key performance indicators that analysts watch include: (1) annual recurring revenue (ARR) growth, which accelerated to ~ 38 % YoY in FY 2024, outpacing the broader cloud-IaaS market’s ~ 20 % rate; (2) gross margin, hovering around 70 % after recent pricing adjustments for premium GPU offerings; and (3) customer churn, which has remained below 4 % quarterly, indicating strong developer stickiness. Macro drivers such as the continued shift to cloud-native development, the surge in AI-enabled workloads, and the high-growth “small-business cloud” segment (estimated at $45 bn globally) underpin DigitalOcean’s growth outlook.
For a deeper quantitative dive into DigitalOcean’s valuation dynamics, you may find the analytics on ValueRay worth exploring.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (251.9m TTM) > 0 and > 6% of Revenue (6% = 51.8m TTM) |
| FCFTA 0.10 (>2.0%) and ΔFCFTA 3.33pp (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 327.7m > Net Income 251.9m (YES >=105%, WARN >=100%) |
| Net Debt (1.36b) to EBITDA (341.1m) ratio: 3.98 <= 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 59.37%; Δ 0.17pp) >=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 18.34 (EBITDA TTM 341.1m / Interest Expense TTM 11.7m) >= 6 (WARN >= 3) |
Altman Z'' 0.88
| (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 |
| (C) 0.13 = EBIT TTM 214.9m / Avg Total Assets 1.63b |
| (D) -0.04 = Book Value of Equity -70.3m / Total Liabilities 1.80b |
| Total Rating: 0.88 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 64.77
| 1. Piotroski 6.50pt |
| 2. FCF Yield 2.69% |
| 3. FCF Margin 19.59% |
| 4. Debt/Equity -22.89 |
| 5. Debt/Ebitda 3.98 |
| 6. ROIC - WACC (= 4.47)% |
| 7. RoE -153.0% |
| 8. Rev. Trend 97.31% |
| 9. EPS Trend 32.78% |
What is the price of DOCN shares?
As of January 14, 2026, the stock is trading at USD 54.39 with a total of 1,900,107 shares traded.
Over the past week, the price has changed by +0.70%, over one month by +18.81%, over three months by +37.59% and over the past year by +62.46%.
Over the past week, the price has changed by +0.70%, over one month by +18.81%, over three months by +37.59% and over the past year by +62.46%.
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 | 54 | -0.7% |
| Analysts Target Price | 54 | -0.7% |
| ValueRay Target Price | 58 | 6.5% |
DOCN Fundamental Data Overview January 08, 2026
P/E Trailing = 21.604
P/E Forward = 24.8139
P/S = 5.7196
P/B = 67.9206
P/EG = 1.8713
Beta = 1.762
Revenue TTM = 864.0m USD
EBIT TTM = 214.9m USD
EBITDA TTM = 341.1m USD
Long Term Debt = 1.28b USD (from longTermDebt, last quarter)
Short Term Debt = 148.9m USD (from shortTermDebt, last quarter)
Debt = 1.59b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.36b USD (from netDebt column, last quarter)
Enterprise Value = 6.30b USD (4.94b + Debt 1.59b - CCE 236.6m)
Interest Coverage Ratio = 18.34 (Ebit TTM 214.9m / Interest Expense TTM 11.7m)
EV/FCF = 37.20x (Enterprise Value 6.30b / FCF TTM 169.3m)
FCF Yield = 2.69% (FCF TTM 169.3m / Enterprise Value 6.30b)
FCF Margin = 19.59% (FCF TTM 169.3m / 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 = 3.65 (Enterprise Value 6.30b / Total Assets 1.73b)
Interest Expense / Debt = 0.32% (Interest Expense 5.04m / Debt 1.59b)
Taxrate = 13.52% (13.2m / 97.7m)
NOPAT = 185.8m (EBIT 214.9m * (1 - 13.52%))
Current Ratio = 1.13 (Total Current Assets 367.6m / Total Current Liabilities 325.0m)
Debt / Equity = -22.89 (negative equity) (Debt 1.59b / totalStockholderEquity, last quarter -69.6m)
Debt / EBITDA = 3.98 (Net Debt 1.36b / EBITDA 341.1m)
Debt / FCF = 8.02 (Net Debt 1.36b / FCF TTM 169.3m)
Total Stockholder Equity = -164.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 15.49% (Net Income 251.9m / Total Assets 1.73b)
RoE = -153.0% (negative equity) (Net Income TTM 251.9m / Total Stockholder Equity -164.6m)
RoCE = 19.19% (EBIT 214.9m / Capital Employed (Equity -164.6m + L.T.Debt 1.28b))
RoIC = 14.58% (NOPAT 185.8m / Invested Capital 1.27b)
WACC = 10.11% (E(4.94b)/V(6.53b) * Re(13.28%) + D(1.59b)/V(6.53b) * Rd(0.32%) * (1-Tc(0.14)))
Discount Rate = 13.28% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 5.81%
[DCF Debug] Terminal Value 74.72% ; FCFF base≈141.1m ; Y1≈174.1m ; Y5≈296.5m
Fair Price DCF = 23.42 (EV 3.50b - Net Debt 1.36b = Equity 2.14b / Shares 91.5m; r=10.11% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 32.78 | EPS CAGR: -22.57% | SUE: -4.0 | # QB: 0
Revenue Correlation: 97.31 | Revenue CAGR: 18.98% | SUE: 2.11 | # QB: 1
EPS next Quarter (2026-03-31): EPS=0.45 | Chg30d=-0.005 | Revisions Net=-1 | Analysts=13
EPS next Year (2026-12-31): EPS=1.95 | Chg30d=-0.016 | Revisions Net=-1 | Growth EPS=-4.5% | Growth Revenue=+18.9%
P/E Forward = 24.8139
P/S = 5.7196
P/B = 67.9206
P/EG = 1.8713
Beta = 1.762
Revenue TTM = 864.0m USD
EBIT TTM = 214.9m USD
EBITDA TTM = 341.1m USD
Long Term Debt = 1.28b USD (from longTermDebt, last quarter)
Short Term Debt = 148.9m USD (from shortTermDebt, last quarter)
Debt = 1.59b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.36b USD (from netDebt column, last quarter)
Enterprise Value = 6.30b USD (4.94b + Debt 1.59b - CCE 236.6m)
Interest Coverage Ratio = 18.34 (Ebit TTM 214.9m / Interest Expense TTM 11.7m)
EV/FCF = 37.20x (Enterprise Value 6.30b / FCF TTM 169.3m)
FCF Yield = 2.69% (FCF TTM 169.3m / Enterprise Value 6.30b)
FCF Margin = 19.59% (FCF TTM 169.3m / 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 = 3.65 (Enterprise Value 6.30b / Total Assets 1.73b)
Interest Expense / Debt = 0.32% (Interest Expense 5.04m / Debt 1.59b)
Taxrate = 13.52% (13.2m / 97.7m)
NOPAT = 185.8m (EBIT 214.9m * (1 - 13.52%))
Current Ratio = 1.13 (Total Current Assets 367.6m / Total Current Liabilities 325.0m)
Debt / Equity = -22.89 (negative equity) (Debt 1.59b / totalStockholderEquity, last quarter -69.6m)
Debt / EBITDA = 3.98 (Net Debt 1.36b / EBITDA 341.1m)
Debt / FCF = 8.02 (Net Debt 1.36b / FCF TTM 169.3m)
Total Stockholder Equity = -164.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 15.49% (Net Income 251.9m / Total Assets 1.73b)
RoE = -153.0% (negative equity) (Net Income TTM 251.9m / Total Stockholder Equity -164.6m)
RoCE = 19.19% (EBIT 214.9m / Capital Employed (Equity -164.6m + L.T.Debt 1.28b))
RoIC = 14.58% (NOPAT 185.8m / Invested Capital 1.27b)
WACC = 10.11% (E(4.94b)/V(6.53b) * Re(13.28%) + D(1.59b)/V(6.53b) * Rd(0.32%) * (1-Tc(0.14)))
Discount Rate = 13.28% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 5.81%
[DCF Debug] Terminal Value 74.72% ; FCFF base≈141.1m ; Y1≈174.1m ; Y5≈296.5m
Fair Price DCF = 23.42 (EV 3.50b - Net Debt 1.36b = Equity 2.14b / Shares 91.5m; r=10.11% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 32.78 | EPS CAGR: -22.57% | SUE: -4.0 | # QB: 0
Revenue Correlation: 97.31 | Revenue CAGR: 18.98% | SUE: 2.11 | # QB: 1
EPS next Quarter (2026-03-31): EPS=0.45 | Chg30d=-0.005 | Revisions Net=-1 | Analysts=13
EPS next Year (2026-12-31): EPS=1.95 | Chg30d=-0.016 | Revisions Net=-1 | Growth EPS=-4.5% | Growth Revenue=+18.9%
Additional Sources for DOCN Stock
News:
Wall Street Journal |
Benzinga |
Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle