(DOCN) DigitalOcean Holdings - Overview

Sector: Technology | Industry: Software - Infrastructure | Exchange: NYSE (USA) | Market Cap: 7.857m USD | Total Return: 189.5% in 12m

Cloud Servers, Managed Databases, Kubernetes, App Platform, GPU Droplets
Total Rating 66
Safety 51
Buy Signal 0.07
Software - Infrastructure
Industry Rotation: -16.2
Market Cap: 7.86B
Avg Turnover: 368M USD
ATR: 9.13%
Peers RS (IBD): 97.2
Risk 5d forecast
Volatility110%
Rel. Tail Risk-5.82%
Reward TTM
Sharpe Ratio1.79
Alpha118.57
Character TTM
Beta1.690
Beta Downside3.516
Drawdowns 3y
Max DD60.28%
CAGR/Max DD0.54
EPS (Earnings per Share) EPS (Earnings per Share) of DOCN over the last years for every Quarter: "2021-03": -0.07, "2021-06": -0.02, "2021-09": 0.12, "2021-12": 0.1, "2022-03": 0.07, "2022-06": 0.2, "2022-09": 0.38, "2022-12": 0.28, "2023-03": 0.28, "2023-06": 0.44, "2023-09": 0.44, "2023-12": 0.44, "2024-03": 0.43, "2024-06": 0.48, "2024-09": 0.52, "2024-12": 0.49, "2025-03": 0.56, "2025-06": 0.59, "2025-09": 0.54, "2025-12": 0.44, "2026-03": 0,
EPS CAGR: -36.67%
EPS Trend: 20.3%
Last SUE: -4.00
Qual. Beats: 0
Revenue Revenue of DOCN over the last years for every Quarter: 2021-03: 93.661, 2021-06: 103.81, 2021-09: 111.428, 2021-12: 119.662, 2022-03: 127.327, 2022-06: 133.882, 2022-09: 152.115, 2022-12: 162.998, 2023-03: 165.134, 2023-06: 169.814, 2023-09: 177.062, 2023-12: 180.874, 2024-03: 184.73, 2024-06: 192.476, 2024-09: 198.484, 2024-12: 204.925, 2025-03: 210.703, 2025-06: 218.7, 2025-09: 229.634, 2025-12: 242.39, 2026-03: null,
Rev. CAGR: 18.73%
Rev. Trend: 97.9%
Last SUE: 3.38
Qual. Beats: 2

Warnings

Altman Z'' 0.06 < 1.0 - financial distress zone

Volatile

Tailwinds

No distinct edge detected

Description: DOCN DigitalOcean Holdings

DigitalOcean Holdings, Inc. (NYSE: DOCN) runs a developer-focused cloud platform across North America, Europe, Asia and other regions, delivering on-demand IaaS, PaaS and SaaS tools such as compute droplets, managed databases, Kubernetes, serverless Functions, and AI/ML services like GPU droplets and a GENAI platform.

In its most recent fiscal year (2025), DigitalOcean reported revenue of $610 million, up 14% year-over-year, with an annual recurring revenue (ARR) run-rate of $1.25 billion and a gross margin of 71%, while maintaining a cash balance of $340 million, underscoring strong liquidity for continued product expansion.

The company benefits from two macro trends: (1) the accelerating migration of small- and medium-size enterprises to cloud infrastructure, which is projected to grow at a 12% CAGR through 2028, and (2) surging demand for AI/ML compute resources, where GPU-enabled droplets and bare-metal GPU servers are seeing double-digit adoption rates among developers.

For a deeper dive into DigitalOcean’s valuation and risk profile, you might explore the analysis on ValueRay.

Headlines to Watch Out For
  • AI/ML product adoption drives cloud platform revenue growth
  • Small business cloud spending impacts IaaS and PaaS demand
  • Competition from hyperscale cloud providers pressures pricing
  • Developer community engagement influences platform stickiness
Piotroski VR‑10 (Strict) 7.0
Net Income: 259.3m TTM > 0 and > 6% of Revenue
FCF/TA: 0.02 > 0.02 and ΔFCF/TA -3.86 > 1.0
NWC/Revenue: -21.35% < 20% (prev 41.09%; Δ -62.44% < -1%)
CFO/TA 0.17 > 3% & CFO 313.7m > Net Income 259.3m
Net Debt (476.1m) to EBITDA (409.2m): 1.16 < 3
Current Ratio: 0.69 > 1.5 & < 3
Outstanding Shares: last quarter (105.3m) vs 12m ago 11.59% < -2%
Gross Margin: 59.86% > 18% (prev 0.59%; Δ 5.93k% > 0.5%)
Asset Turnover: 51.86% > 50% (prev 47.63%; Δ 4.23% > 0%)
Interest Coverage Ratio: 15.40 > 6 (EBITDA TTM 409.2m / Interest Expense TTM 14.3m)
Altman Z'' 0.06
A: -0.10 (Total Current Assets 427.0m - Total Current Liabilities 619.5m) / Total Assets 1.84b
B: -0.02 (Retained Earnings -43.7m / Total Assets 1.84b)
C: 0.13 (EBIT TTM 221.0m / Avg Total Assets 1.74b)
D: -0.02 (Book Value of Equity -44.7m / Total Liabilities 1.87b)
Altman-Z'' Score: 0.06 = B
Beneish M -3.05
DSRI: 0.86 (Receivables 90.9m/91.1m, Revenue 901.4m/780.6m)
GMI: 0.98 (GM 59.86% / 58.90%)
AQI: 1.03 (AQ_t 0.30 / AQ_t-1 0.29)
SGI: 1.15 (Revenue 901.4m / 780.6m)
TATA: -0.03 (NI 259.3m - CFO 313.7m) / TA 1.84b)
Beneish M-Score: -3.05 (Cap -4..+1) = AA
What is the price of DOCN shares? As of April 14, 2026, the stock is trading at USD 79.87 with a total of 5,701,640 shares traded.
Over the past week, the price has changed by -8.27%, over one month by +16.38%, over three months by +46.85% and over the past year by +189.49%.
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.
  • StrongBuy: 3
  • Buy: 4
  • Hold: 6
  • Sell: 1
  • StrongSell: 0
What are the forecasts/targets for the DOCN price?
Analysts Target Price 84 5.2%
DigitalOcean Holdings (DOCN) - Fundamental Data Overview as of 12 April 2026
P/E Trailing = 34.6743
P/E Forward = 78.7402
P/S = 8.7163
P/B = 67.9206
P/EG = 1.5379
Revenue TTM = 901.4m USD
EBIT TTM = 221.0m USD
EBITDA TTM = 409.2m USD
Long Term Debt = 970.7m USD (from longTermDebt, last quarter)
Short Term Debt = 464.6m USD (from shortTermDebt, last quarter)
Debt = 1.44b USD (corrected: LT Debt 970.7m + ST Debt 464.6m)
Net Debt = 476.1m USD (from netDebt column, last quarter)
Enterprise Value = 9.04b USD (7.86b + Debt 1.44b - CCE 254.5m)
Interest Coverage Ratio = 15.40 (Ebit TTM 221.0m / Interest Expense TTM 14.3m)
EV/FCF = 244.3x (Enterprise Value 9.04b / FCF TTM 37.0m)
FCF Yield = 0.41% (FCF TTM 37.0m / Enterprise Value 9.04b)
FCF Margin = 4.10% (FCF TTM 37.0m / Revenue TTM 901.4m)
Net Margin = 28.76% (Net Income TTM 259.3m / Revenue TTM 901.4m)
Gross Margin = 59.86% ((Revenue TTM 901.4m - Cost of Revenue TTM 361.8m) / Revenue TTM)
Gross Margin QoQ = 58.69% (prev 59.63%)
Tobins Q-Ratio = 4.92 (Enterprise Value 9.04b / Total Assets 1.84b)
Interest Expense / Debt = 0.34% (Interest Expense 4.86m / Debt 1.44b)
Taxrate = 21.09% (6.86m / 32.5m)
NOPAT = 174.4m (EBIT 221.0m * (1 - 21.09%))
Current Ratio = 0.69 (Total Current Assets 427.0m / Total Current Liabilities 619.5m)
 Debt / Equity = -50.02 (negative equity) (Debt 1.44b / totalStockholderEquity, last quarter -28.7m)
 Debt / EBITDA = 1.16 (Net Debt 476.1m / EBITDA 409.2m)
Debt / FCF = 12.87 (Net Debt 476.1m / FCF TTM 37.0m)
Total Stockholder Equity = -121.1m (last 4 quarters mean from totalStockholderEquity)
RoA = 14.91% (Net Income 259.3m / Total Assets 1.84b)
 RoE = -214.1% (negative equity) (Net Income TTM 259.3m / Total Stockholder Equity -121.1m)
 RoCE = 26.01% (EBIT 221.0m / Capital Employed (Equity -121.1m + L.T.Debt 970.7m))
RoIC = 13.73% (NOPAT 174.4m / Invested Capital 1.27b)
WACC = 10.13% (E(7.86b)/V(9.29b) * Re(11.93%) + D(1.44b)/V(9.29b) * Rd(0.34%) * (1-Tc(0.21)))
Discount Rate = 11.93% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 4.58%
[DCF] Terminal Value 74.97% ; FCFF base≈60.7m ; Y1≈74.9m ; Y5≈127.7m
[DCF] Fair Price = 10.04 (EV 1.52b - Net Debt 476.1m = Equity 1.04b / Shares 103.9m; r=10.13% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 20.32 | EPS CAGR: -36.67% | SUE: -4.0 | # QB: 0
Revenue Correlation: 97.89 | Revenue CAGR: 18.73% | SUE: 3.38 | # QB: 2
EPS next Quarter (2026-06-30): EPS=0.23 | Chg7d=-0.001 | Chg30d=-0.001 | Revisions Net=-13 | Analysts=14
EPS current Year (2026-12-31): EPS=0.98 | Chg7d=+0.036 | Chg30d=+0.038 | Revisions Net=+0 | Growth EPS=-53.7% | Growth Revenue=+21.4%
EPS next Year (2027-12-31): EPS=1.69 | Chg7d=-0.055 | Chg30d=-0.062 | Revisions Net=-1 | Growth EPS=+72.3% | Growth Revenue=+30.2%
[Analyst] Revisions Ratio: -1.00 (0 Up / 13 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 9.0% (Discount Rate 11.9% - Earnings Yield 2.9%)
[Growth] Growth Spread = +10.1% (Analyst 19.2% - Implied 9.0%)
External Resources
Dataroma Stockcircle