(DOCN) DigitalOcean Holdings - Ratings and Ratios
Cloud Servers, Managed Databases, Kubernetes, App Platform, GPU Cloud
DOCN EPS (Earnings per Share)
DOCN Revenue
Description: DOCN DigitalOcean Holdings
DigitalOcean Holdings Inc (DOCN) is a cloud computing platform provider that caters to growing technology companies, offering on-demand infrastructure and platform tools for developers. The companys IaaS, PaaS, and SaaS solutions enable customers to build, deploy, and scale applications, with a focus on simplicity and ease of use.
Key features of DigitalOceans offerings include cloud firewalls, managed load balancers, and virtual private cloud software, as well as AI/ML applications such as GPU droplets and GENAI platform. The companys platform is used across various industry verticals, including gaming, fintech, and cybersecurity, for use cases such as building and hosting websites, web and mobile applications development, and AI integration.
From a performance perspective, DigitalOceans revenue growth rate is a key KPI to watch. The companys ability to expand its customer base and increase average revenue per user (ARPU) will be crucial in driving growth. Additionally, metrics such as customer acquisition cost (CAC) and customer lifetime value (CLV) will be important in evaluating the companys sales and marketing efficiency.
In terms of profitability, DigitalOceans gross margin and operating margin are key indicators to monitor. The companys ability to maintain a healthy gross margin will depend on its pricing power and ability to manage infrastructure costs. Operating margin, on the other hand, will be influenced by the companys ability to control operating expenses, such as sales and marketing, research and development, and general and administrative costs.
Other relevant KPIs for DigitalOcean include its cash flow generation, debt levels, and return on invested capital (ROIC). The companys ability to generate cash from operations will be important in funding its growth initiatives and servicing its debt. A reasonable debt-to-equity ratio and a positive ROIC will indicate a healthy balance sheet and effective capital allocation.
DOCN Stock Overview
| Market Cap in USD | 2,970m |
| Sub-Industry | Internet Services & Infrastructure |
| IPO / Inception | 2021-03-24 |
DOCN Stock Ratings
| Growth Rating | -46.4% |
| Fundamental | 66.9% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | -25.5% |
| Analyst Rating | 3.64 of 5 |
DOCN Dividends
Currently no dividends paidDOCN Growth Ratios
| Growth Correlation 3m | 80.6% |
| Growth Correlation 12m | -74.2% |
| Growth Correlation 5y | -58.7% |
| CAGR 5y | -4.99% |
| CAGR/Max DD 3y | -0.08 |
| CAGR/Mean DD 3y | -0.18 |
| Sharpe Ratio 12m | -0.29 |
| Alpha | -18.48 |
| Beta | 0.515 |
| Volatility | 51.09% |
| Current Volume | 2988.3k |
| Average Volume 20d | 2156.1k |
| Stop Loss | 33.9 (-5%) |
| Signal | -1.22 |
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (126.4m TTM) > 0 and > 6% of Revenue (6% = 50.0m TTM) |
| FCFTA 0.05 (>2.0%) and ΔFCFTA -2.22pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 34.25% (prev 44.01%; Δ -9.76pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.18 (>3.0%) and CFO 301.2m > Net Income 126.4m (YES >=105%, WARN >=100%) |
| Net Debt (1.38b) to EBITDA (278.4m) ratio: 4.94 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.27 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (100.6m) change vs 12m ago 7.23% (target <= -2.0% for YES) |
| Gross Margin 59.67% (prev 60.21%; Δ -0.54pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 51.15% (prev 47.84%; Δ 3.31pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 16.94 (EBITDA TTM 278.4m / Interest Expense TTM 8.94m) >= 6 (WARN >= 3) |
Altman Z'' 1.26
| (A) 0.17 = (Total Current Assets 509.8m - Total Current Liabilities 224.5m) / Total Assets 1.72b |
| (B) -0.11 = Retained Earnings (Balance) -183.5m / Total Assets 1.72b |
| (C) 0.09 = EBIT TTM 151.4m / Avg Total Assets 1.63b |
| (D) -0.10 = Book Value of Equity -184.1m / Total Liabilities 1.90b |
| Total Rating: 1.26 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 66.86
| 1. Piotroski 5.50pt = 0.50 |
| 2. FCF Yield 2.25% = 1.13 |
| 3. FCF Margin 11.27% = 2.82 |
| 4. Debt/Equity data missing |
| 5. Debt/Ebitda 5.70 = -2.50 |
| 6. ROIC - WACC 4.98% = 6.23 |
| 7. RoE data missing |
| 8. Rev. Trend 99.66% = 4.98 |
| 9. Rev. CAGR 14.11% = 1.76 |
| 10. EPS Trend 77.67% = 1.94 |
| 11. EPS CAGR 0.0% = 0.0 |
What is the price of DOCN shares?
Over the past week, the price has changed by +7.15%, over one month by +16.86%, over three months by +26.79% and over the past year by -11.83%.
Is DigitalOcean Holdings a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of DOCN is around 34.85 USD . This means that DOCN is currently overvalued and has a potential downside of -2.35%.
Is DOCN a buy, sell or hold?
- 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 | 41.6 | 16.6% |
| Analysts Target Price | 41.6 | 16.6% |
| ValueRay Target Price | 37.7 | 5.6% |
Last update: 2025-09-03 04:35
DOCN Fundamental Data Overview
CCE Cash And Equivalents = 387.7m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 24.9008
P/E Forward = 15.9236
P/S = 3.5658
P/B = 67.9206
P/EG = 1.8713
Beta = 1.752
Revenue TTM = 832.8m USD
EBIT TTM = 151.4m USD
EBITDA TTM = 278.4m USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 98.2m USD (from shortTermDebt, last quarter)
Debt = 1.59b USD (Calculated: Short Term 98.2m + Long Term 1.49b)
Net Debt = 1.38b USD (from netDebt column, last quarter)
Enterprise Value = 4.17b USD (2.97b + Debt 1.59b - CCE 387.7m)
Interest Coverage Ratio = 16.94 (Ebit TTM 151.4m / Interest Expense TTM 8.94m)
FCF Yield = 2.25% (FCF TTM 93.9m / Enterprise Value 4.17b)
FCF Margin = 11.27% (FCF TTM 93.9m / Revenue TTM 832.8m)
Net Margin = 15.18% (Net Income TTM 126.4m / Revenue TTM 832.8m)
Gross Margin = 59.67% ((Revenue TTM 832.8m - Cost of Revenue TTM 335.9m) / Revenue TTM)
Tobins Q-Ratio = -22.65 (set to none) (Enterprise Value 4.17b / Book Value Of Equity -184.1m)
Interest Expense / Debt = 0.14% (Interest Expense 2.24m / Debt 1.59b)
Taxrate = 13.52% (13.2m / 97.7m)
NOPAT = 130.9m (EBIT 151.4m * (1 - 13.52%))
Current Ratio = 2.27 (Total Current Assets 509.8m / Total Current Liabilities 224.5m)
Debt / EBITDA = 5.70 (Net Debt 1.38b / EBITDA 278.4m)
Debt / FCF = 16.91 (Debt 1.59b / FCF TTM 93.9m)
Total Stockholder Equity = -200.2m (last 4 quarters mean)
RoA = 7.35% (Net Income 126.4m, Total Assets 1.72b )
RoE = unknown (Net Income TTM 126.4m / Total Stockholder Equity -200.2m)
RoCE = 11.75% (Ebit 151.4m / (Equity -200.2m + L.T.Debt 1.49b))
RoIC = 10.18% (NOPAT 130.9m / Invested Capital 1.29b)
WACC = 5.20% (E(2.97b)/V(4.56b) * Re(7.91%)) + (D(1.59b)/V(4.56b) * Rd(0.14%) * (1-Tc(0.14)))
Shares Correlation 3-Years: -9.09 | Cagr: -0.38%
Discount Rate = 7.91% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 81.43% ; FCFE base≈103.5m ; Y1≈127.7m ; Y5≈217.9m
Fair Price DCF = 40.70 (DCF Value 3.71b / Shares Outstanding 91.0m; 5y FCF grow 25.0% → 3.0% )
Revenue Correlation: 99.66 | Revenue CAGR: 14.11%
Rev Growth-of-Growth: -0.02
EPS Correlation: 77.67 | EPS CAGR: 0.0%
EPS Growth-of-Growth: -67.40
Additional Sources for DOCN Stock
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