(DOCN) DigitalOcean Holdings - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NYSE (USA) | Market Cap: 17.089m USD | Total Return: 421.9% in 12m
Avg Turnover: 541M
EPS Trend: 92.2%
Qual. Beats: 8
Rev. Trend: 99.7%
Qual. Beats: 3
Warnings
Earnings expected to drop: P/E 72.1 → Forward 153.8
Below Avwap Earnings
Tailwinds
Rs Leader, Idiosyncratic Leader, Pead, Confidence
DigitalOcean Holdings, Inc. (DOCN) operates an international cloud computing platform tailored for developers, startups, and small-to-midsize businesses. Its core business model utilizes a self-service infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) framework, offering tools for compute, storage, networking, and managed databases. The company focuses on simplifying cloud deployment for digital native enterprises that lack the complex administrative resources required by larger hyperscale providers.
The company has expanded its portfolio into high-growth segments, including managed Kubernetes, serverless computing, and specialized artificial intelligence (AI) infrastructure. This includes GPU-optimized droplets and bare metal servers designed for machine learning model training and data exploration. The cloud infrastructure sector typically benefits from high switching costs once applications are integrated into a providers ecosystem.
Investors can evaluate the company’s competitive positioning and valuation metrics further on ValueRay.
Headquartered in Colorado, DigitalOcean serves diverse industry verticals such as fintech, cybersecurity, and online gaming. By maintaining a marketplace for pre-configured applications, the company lowers the barrier to entry for software deployment. This developer-centric approach allows the firm to scale alongside its customers as their application traffic and data requirements increase.
- Expansion of GPU-based cloud infrastructure accelerates revenue from AI startups
- Average revenue per customer growth offsets slowing new user acquisition
- SMB cloud spending remains highly sensitive to global macroeconomic volatility
- Competitive pricing pressure from hyperscalers impacts long-term infrastructure margins
- Strategic shift toward higher-margin PaaS and managed services improves profitability
| Net Income: 236.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -2.94 > 1.0 |
| NWC/Revenue: 31.34% < 20% (prev 34.83%; Δ -3.49% < -1%) |
| CFO/TA 0.12 > 3% & CFO 296.5m > Net Income 236.8m |
| Net Debt (538.4m) to EBITDA (418.5m): 1.29 < 3 |
| Current Ratio: 1.46 > 1.5 & < 3 |
| Outstanding Shares: last quarter (111.9m) vs 12m ago 9.38% < -2% |
| Gross Margin: 58.49% > 18% (prev 0.60%; Δ 5.79k% > 0.5%) |
| Asset Turnover: 45.04% > 50% (prev 49.13%; Δ -4.09% > 0%) |
| Interest Coverage Ratio: 9.43 > 6 (EBITDA TTM 418.5m / Interest Expense TTM 22.7m) |
| A: 0.12 (Total Current Assets 944.3m - Total Current Liabilities 647.0m) / Total Assets 2.57b |
| B: -0.01 (Retained Earnings -28.0m / Total Assets 2.57b) |
| C: 0.10 (EBIT TTM 214.0m / Avg Total Assets 2.11b) |
| D: -0.02 (Book Value of Equity -29.5m / Total Liabilities 1.68b) |
| Altman-Z'' = 1.39 = BB |
| DSRI: 1.17 (Receivables 105.5m/76.6m, Revenue 948.6m/806.6m) |
| GMI: 1.02 (GM 58.49% / 59.52%) |
| AQI: 0.73 (AQ_t 0.21 / AQ_t-1 0.29) |
| SGI: 1.18 (Revenue 948.6m / 806.6m) |
| TATA: -0.02 (NI 236.8m - CFO 296.5m) / TA 2.57b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of May 28, 2026, the stock is trading at USD 150.42 with a total of 2,218,278 shares traded.
Over the past week, the price has changed by +0.27%,
over one month by +52.02%,
over three months by +168.32% and
over the past year by +421.93%.
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 | 177 | 17.7% |
P/E Trailing = 72.1321
P/E Forward = 153.8462
P/S = 18.014
P/B = 18.8305
P/EG = 1.5379
Revenue TTM = 948.6m USD
EBIT TTM = 214.0m USD
EBITDA TTM = 418.5m USD
Long Term Debt = 608.5m USD (from longTermDebt, last quarter)
Short Term Debt = 480.1m USD (from shortTermDebt, last quarter)
Debt = 1.28b USD (from shortLongTermDebtTotal, last quarter) + Leases 380.2m
Net Debt = 538.4m USD (calculated: Debt 1.28b - CCE 741.4m)
Enterprise Value = 17.6b USD (17.1b + Debt 1.28b - CCE 741.4m)
Interest Coverage Ratio = 9.43 (Ebit TTM 214.0m / Interest Expense TTM 22.7m)
EV/FCF = 439.9x (Enterprise Value 17.6b / FCF TTM 40.1m)
FCF Yield = 0.23% (FCF TTM 40.1m / Enterprise Value 17.6b)
FCF Margin = 4.22% (FCF TTM 40.1m / Revenue TTM 948.6m)
Net Margin = 24.97% (Net Income TTM 236.8m / Revenue TTM 948.6m)
Gross Margin = 58.49% ((Revenue TTM 948.6m - Cost of Revenue TTM 393.8m) / Revenue TTM)
Gross Margin QoQ = 56.11% (prev 58.69%)
Tobins Q-Ratio = 6.86 (Enterprise Value 17.6b / Total Assets 2.57b)
Interest Expense / Debt = 1.77% (Interest Expense 22.7m / Debt 1.28b)
Taxrate = 35.62% (8.72m / 24.5m)
NOPAT = 137.8m (EBIT 214.0m * (1 - 35.62%))
Current Ratio = 1.46 (Total Current Assets 944.3m / Total Current Liabilities 647.0m)
Debt / Equity = 1.44 (Debt 1.28b / totalStockholderEquity, last quarter 887.4m)
Debt / EBITDA = 1.29 (Net Debt 538.4m / EBITDA 418.5m)
Debt / FCF = 13.44 (Net Debt 538.4m / FCF TTM 40.1m)
Total Stockholder Equity = 153.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 11.25% (Net Income 236.8m / Total Assets 2.57b)
RoE = 130.5% (Net Income TTM 236.8m / Total Stockholder Equity 181.4m)
RoCE = 27.09% (EBIT 214.0m / Capital Employed (Equity 181.4m + L.T.Debt 608.5m))
RoIC = 6.10% (NOPAT 137.8m / Invested Capital 2.26b)
WACC = 12.59% (E(17.1b)/V(18.4b) * Re(13.45%) + D(1.28b)/V(18.4b) * Rd(1.77%) * (1-Tc(0.36)))
Discount Rate = 13.45% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 82.22 | Cagr: 9.08%
[DCF] Terminal Value 59.04% ; FCFF base≈53.6m ; Y1≈47.0m ; Y5≈38.0m
[DCF] Fair Price = N/A (negative equity: EV 360.9m - Net Debt 538.4m = -177.5m; debt exceeds intrinsic value)
EPS Correlation: 92.21 | EPS CAGR: 17.14% | SUE: 4.0 | # QB: 8
Revenue Correlation: 99.68 | Revenue CAGR: 14.04% | SUE: 4.0 | # QB: 3
EPS current Quarter (2026-06-30): EPS=0.25 | Chg30d=+9.19% | Revisions=+41% | Analysts=14
EPS next Quarter (2026-09-30): EPS=0.28 | Chg30d=+15.51% | Revisions=+44% | Analysts=14
EPS current Year (2026-12-31): EPS=1.20 | Chg30d=+22.25% | Revisions=+78% | GrowthEPS=-43.5% | GrowthRev=+26.7%
EPS next Year (2027-12-31): EPS=1.72 | Chg30d=+1.75% | Revisions=-6% | GrowthEPS=+43.4% | GrowthRev=+51.5%
[Analyst] Revisions Ratio: +78%