(DOCN) DigitalOcean Holdings - NYSE
Sector: Technology | Industry: Software - Infrastructure | Exchange: NYSE (USA) | Market Cap: 18.083m USD | Total Return: 429.2% in 12m
Avg Turnover: 467M
EPS Trend: 83.0%
Qual. Beats: 8
Rev. Trend: 99.7%
Qual. Beats: 3
Warnings
P/E ratio 76.0
Earnings expected to drop: P/E 76.0 → Forward 166.7
Below Avwap Earnings
Tailwinds
Rs Leader, Idiosyncratic Leader, Confidence
DigitalOcean Holdings, Inc. (NYSE: DOCN) is a U.S.-based cloud computing provider that operates an agentic inference cloud platform serving customers in North America, Europe, and Asia. The company was founded in 2012, is headquartered in Broomfield, Colorado, and went public in March 2021. It sits within the Information Technology sector, specifically the Internet Services & Infrastructure sub-industry.
DigitalOceans core business is providing cloud infrastructure and platform services to technology companies and digital-native enterprises. Its offerings span the full cloud stack: infrastructure-as-a-service (IaaS) products such as compute, storage, networking, cloud firewalls, managed load balancers, NAT gateways, and virtual private cloud; platform-as-a-service (PaaS) and software-as-a-service (SaaS) solutions including managed databases, managed Kubernetes, an application platform, serverless functions, and uptime monitoring; and AI/ML capabilities such as GPU droplets, bare metal GPU servers, and managed Jupyter Notebooks. The company also operates DigitalOcean Marketplace, where developers can deploy pre-configured applications.
DigitalOceans customer base spans several verticals, including online gaming, fintech, and cybersecurity, with typical use cases ranging from website hosting and web/mobile app development to AI integration and building AI products. Unlike hyperscale cloud providers (e.g., AWS, Microsoft Azure, Google Cloud) that cater broadly to enterprises of all sizes, DigitalOcean has historically focused on small and mid-sized businesses, startups, and individual developers, positioning itself as a simpler and more affordable alternative in the IaaS market. The recent emphasis on agentic inference reflects the broader industry shift toward AI workloads and autonomous AI agents requiring specialized compute.
- Agentic AI cloud platform drives new customer growth
- GPU droplet revenue accelerates on rising AI workload demand
- Hyperscaler competition pressures pricing and compresses operating margins
| Net Income: 236.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA -4.24 > 1.0 |
| NWC/Revenue: 31.34% < 20% (prev 34.83%; Δ -3.49% < -1%) |
| CFO/TA 0.11 > 3% & CFO 292.4m > Net Income 236.8m |
| Net Debt (538.4m) to EBITDA (417.0m): 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 59.52%; Δ -1.03% > 0.5%) |
| Asset Turnover: 45.04% > 50% (prev 49.13%; Δ -4.09% > 0%) |
| Interest Coverage Ratio: 9.36 > 6 (EBIT TTM 212.5m / 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 212.5m / Avg Total Assets 2.11b) |
| D: 0.53 (Book Value of Equity 887.4m / Total Liabilities 1.68b) |
| Altman-Z'' = 1.95 = BBB |
| DSRI: 1.17 (Receivables 105.5m/76.6m, Revenue 948.6m/806.6m) |
| GMI: 1.02 (GM 59.52% / 58.49%) |
| 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 292.4m) / TA 2.57b) |
| Beneish M = -2.90 (Cap -4..+1) = A |
As of June 25, 2026, the stock is trading at USD 148.59 with a total of 3,037,734 shares traded. Over the past week, the price has changed by -14.69%, over one month by -7.55%, over three months by +74.98% and over the past year by +429.17%.
Current recommended Stop Loss: 131.20 (which is 11.7% or 1.2 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 | 178.8 | 20.3% |
P/E Trailing = 75.9956
P/E Forward = 166.6667
P/S = 19.0624
P/B = 20.3783
P/EG = 1.5379
Revenue TTM = 948.6m USD
EBIT TTM = 212.5m USD
EBITDA TTM = 417.0m 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 = 18.6b USD (18.1b + Debt 1.28b - CCE 741.4m)
Interest Coverage Ratio = 9.36 (Ebit TTM 212.5m / Interest Expense TTM 22.7m)
EV/FCF = 1000.0x (Enterprise Value 18.6b / FCF TTM 10.6m)
FCF Yield = 0.06% (FCF TTM 10.6m / Enterprise Value 18.6b)
FCF Margin = 1.12% (FCF TTM 10.6m / 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 = 7.24 (Enterprise Value 18.6b / Total Assets 2.57b)
Interest Expense / Debt = 1.77% (Interest Expense 22.7m / Debt 1.28b)
Taxrate = 35.62% (8.72m / 24.5m)
NOPAT = 136.8m (EBIT 212.5m * (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 417.0m)
Debt / FCF = 50.78 (Net Debt 538.4m / FCF TTM 10.6m)
Total Stockholder Equity = 153.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 11.25% (Net Income 236.8m / Total Assets 2.57b)
RoE = 154.3% (Net Income TTM 236.8m / Total Stockholder Equity 153.5m)
RoCE = 27.89% (EBIT 212.5m / Capital Employed (Equity 153.5m + L.T.Debt 608.5m))
RoIC = 5.81% (NOPAT 136.8m / Invested Capital 2.36b)
WACC = 12.69% (E(18.1b)/V(19.4b) * Re(13.51%) + D(1.28b)/V(19.4b) * Rd(1.77%) * (1-Tc(0.36)))
Discount Rate = 13.51% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 82.22 | Cagr: 9.08%
[DCF] Terminal Value 58.75% ; FCFF base≈36.9m ; Y1≈32.4m ; Y5≈26.1m
[DCF] Fair Price = N/A (negative equity: EV 246.2m - Net Debt 538.4m = -292.2m; debt exceeds intrinsic value)
EPS Correlation: 82.99 | EPS CAGR: 13.67% | 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=-0.48% | Revisions=+41% | Analysts=15
EPS next Quarter (2026-09-30): EPS=0.27 | Chg30d=-0.87% | Revisions=+44% | Analysts=15
EPS current Year (2026-12-31): EPS=1.20 | Chg30d=-0.27% | Revisions=+78% | GrowthEPS=-43.6% | GrowthRev=+26.6%
EPS next Year (2027-12-31): EPS=1.76 | Chg30d=+6.27% | Revisions=-6% | GrowthEPS=+47.0% | GrowthRev=+51.4%
[Analyst] Revisions Ratio: +78%