DOCN Stock Analysis: DigitalOcean Holdings | NYSE
Software - Infrastructure | NYSE, USA | Market Cap: 16.338m USD | 12M Return: 289.7% | US25402D1028 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 317M
EPS Trend: 44.8%
Qual. Beats: 9
Rev. Trend: 99.2%
Qual. Beats: 4
Warnings
Tailwinds
Seasonality 5.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
DigitalOcean Holdings, Inc. (NYSE: DOCN) is a U.S.-based cloud infrastructure provider headquartered in Broomfield, Colorado, incorporated in 2012 and publicly listed since its March 2021 IPO. The company operates an agentic inference cloud platform serving customers across North America, Europe, and Asia, with a core focus on AI and digital-native enterprises as well as growing technology companies.
Its business model spans three main service layers: Infrastructure-as-a-Service (IaaS) offering compute, storage, networking, and security products such as cloud firewalls, managed load balancers, NAT gateways, and virtual private cloud software; Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) solutions including managed databases, managed Kubernetes, serverless Functions, an application platform, and the DigitalOcean Marketplace for pre-configured applications; and AI/ML offerings such as GPU Droplets, bare metal GPUs, and managed Jupyter Notebooks for model training and development.
DigitalOcean is positioned within the Internet Services & Infrastructure sub-industry of the Information Technology sector, competing in the broader cloud computing market alongside hyperscalers like AWS, Microsoft Azure, and Google Cloud, but generally targeting smaller and mid-market developers and startups with simplified, developer-friendly tooling. Its customer base spans verticals including online gaming, fintech, and cybersecurity, with use cases ranging from website hosting and web/mobile app development to AI integration and building AI products.
- Agentic AI cloud platform drives new enterprise revenue growth
- Hyperscaler competition pressures pricing and market share
- Cost cuts and efficiency push lift operating margins
| Net Income: 235.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA -5.11 > 1.0 |
| NWC/Revenue: 23.88% < 20% (prev 34.25%; Δ -10.37% < -1%) |
| CFO/TA 0.11 > 3% & CFO 356.9m > Net Income 235.2m |
| Net Debt (1.34b) to EBITDA (321.8m): 4.17 < 3 |
| Current Ratio: 1.31 > 1.5 & < 3 |
| Outstanding Shares: last quarter (126.5m) vs 12m ago 25.77% < -2% |
| Gross Margin: 57.22% > 18% (prev 59.67%; Δ -2.44% > 0.5%) |
| Asset Turnover: 41.76% > 50% (prev 48.42%; Δ -6.67% > 0%) |
| Interest Coverage Ratio: 5.36 > 6 (EBIT TTM 149.7m / Interest Expense TTM 27.9m) |
| A: 0.08 (Total Current Assets 1.02b - Total Current Liabilities 776.1m) / Total Assets 3.12b |
| B: 0.00 (Retained Earnings 7.47m / Total Assets 3.12b) |
| C: 0.06 (EBIT TTM 149.7m / Avg Total Assets 2.42b) |
| D: 0.42 (Book Value of Equity 930.7m / Total Liabilities 2.19b) |
| Altman-Z'' = 1.38 = BB |
| DSRI: 1.17 (Receivables 115.0m/81.3m, Revenue 1.01b/832.8m) |
| GMI: 1.04 (GM 59.67% / 57.22%) |
| AQI: 0.64 (AQ_t 0.18 / AQ_t-1 0.28) |
| SGI: 1.21 (Revenue 1.01b / 832.8m) |
| TATA: -0.04 (NI 235.2m - CFO 356.9m) / TA 3.12b) |
| Beneish M = -2.92 (Cap -4..+1) = A |
As of October 02, 2026, the stock is trading at USD 139.80 with a total of 1,472,961 shares traded. Over the past week, the price has changed by -1.25%, over one month by +28.35%, over three months by -3.31% and over the past year by +289.74%.
Current recommended Stop Loss: 128.50 (which is 8.1% or 1.3 ATR below the current price).
DigitalOcean Holdings has received a consensus analysts rating of 3.64. Therefore, it is recommended to hold DOCN.
- StrongBuy: 3
- Buy: 4
- Hold: 6
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 175.2 | 25.3% |
P/E Trailing = 63.8128
P/E Forward = 76.3359
P/S = 16.1583
P/B = 17.8391
P/EG = 1.5379
Revenue TTM = 1.01b USD
EBIT TTM = 149.7m USD
EBITDA TTM = 321.8m USD
Long Term Debt = 609.4m USD (from longTermDebt, last quarter)
Short Term Debt = 441.4m USD (from shortTermDebt, last quarter)
Debt = 2.11b USD (from shortLongTermDebtTotal, last quarter) + Leases 608.9m
Net Debt = 1.34b USD (calculated: Debt 2.11b - CCE 767.0m)
Enterprise Value = 17.7b USD (16.3b + Debt 2.11b - CCE 767.0m)
Interest Coverage Ratio = 5.36 (Ebit TTM 149.7m / Interest Expense TTM 27.9m)
EV/FCF = 1000.0x (Enterprise Value 17.7b / FCF TTM 14.9m)
FCF Yield = 0.08% (FCF TTM 14.9m / Enterprise Value 17.7b)
FCF Margin = 1.47% (FCF TTM 14.9m / Revenue TTM 1.01b)
Net Margin = 23.27% (Net Income TTM 235.2m / Revenue TTM 1.01b)
Gross Margin = 57.22% ((Revenue TTM 1.01b - Cost of Revenue TTM 432.5m) / Revenue TTM)
Gross Margin QoQ = 55.00% (prev 56.11%)
Tobins Q-Ratio = 5.66 (Enterprise Value 17.7b / Total Assets 3.12b)
Interest Expense / Debt = 1.32% (Interest Expense 27.9m / Debt 2.11b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 118.2m (EBIT 149.7m * (1 - 21.00%))
Current Ratio = 1.31 (Total Current Assets 1.02b / Total Current Liabilities 776.1m)
Debt / Equity = 2.26 (Debt 2.11b / totalStockholderEquity, last quarter 930.7m)
Debt / EBITDA = 4.17 (Net Debt 1.34b / EBITDA 321.8m)
Debt / FCF = 90.09 (Net Debt 1.34b / FCF TTM 14.9m)
Total Stockholder Equity = 429.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 9.71% (Net Income 235.2m / Total Assets 3.12b)
RoE = 54.71% (Net Income TTM 235.2m / Total Stockholder Equity 429.9m)
RoCE = 14.40% (EBIT 149.7m / Capital Employed (Equity 429.9m + L.T.Debt 609.4m))
RoIC = 4.32% (NOPAT 118.2m / Invested Capital 2.74b)
WACC = 11.71% (E(16.3b)/V(18.4b) * Re(13.08%) + D(2.11b)/V(18.4b) * Rd(1.32%) * (1-Tc(0.21)))
Discount Rate = 13.08% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 84.92 | Cagr: 14.24%
[DCF] Terminal Value 61.69% ; FCFF base≈47.4m ; Y1≈41.5m ; Y5≈33.6m
[DCF] Fair Price = N/A (negative equity: EV 348.4m - Net Debt 1.34b = -992.2m; debt exceeds intrinsic value)
EPS Correlation: 44.83 | EPS CAGR: 6.14% | SUE: 4.0 | # QB: 9
Revenue Correlation: 99.21 | Revenue CAGR: 15.09% | SUE: 1.13 | # QB: 4
EPS current Quarter (2026-09-30): EPS=0.32 | Chg30d=+12.65% | Revisions=+59% | Analysts=17
EPS current Year (2026-12-31): EPS=1.46 | Chg30d=+18.00% | Revisions=+82% | GrowthEPS=-31.3% | GrowthRev=+30.8%
EPS next Year (2027-12-31): EPS=1.84 | Chg30d=-0.87% | Revisions=+56% | GrowthEPS=+26.4% | GrowthRev=+53.7%
[Analyst] Revisions Ratio: +75% (up=37, down=4)