(DOCN) DigitalOcean Holdings - Overview
Stock: Cloud, Compute, Storage, Kubernetes, Database
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 67.5% |
| Relative Tail Risk | -7.60% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.79 |
| Alpha | 18.55 |
| Character TTM | |
|---|---|
| Beta | 2.066 |
| Beta Downside | 1.860 |
| Drawdowns 3y | |
|---|---|
| Max DD | 60.28% |
| CAGR/Max DD | 0.53 |
Description: DOCN DigitalOcean Holdings January 12, 2026
DigitalOcean Holdings, Inc. (NYSE: DOCN) runs a developer-focused cloud platform spanning North America, Europe, Asia and other regions. It delivers on-demand infrastructure-as-a-service (compute, storage, networking) and platform-as-a-service tools such as managed databases, Kubernetes, serverless Functions, and a marketplace of pre-configured applications. The firm has recently expanded into AI/ML with GPU-powered droplets, a GENAI deployment platform, bare-metal GPUs, and Jupyter Notebook workspaces, targeting verticals like gaming, fintech and cybersecurity.
Key performance indicators that analysts watch include: (1) annual recurring revenue (ARR) growth, which accelerated to ~ 38 % YoY in FY 2024, outpacing the broader cloud-IaaS market’s ~ 20 % rate; (2) gross margin, hovering around 70 % after recent pricing adjustments for premium GPU offerings; and (3) customer churn, which has remained below 4 % quarterly, indicating strong developer stickiness. Macro drivers such as the continued shift to cloud-native development, the surge in AI-enabled workloads, and the high-growth “small-business cloud” segment (estimated at $45 bn globally) underpin DigitalOcean’s growth outlook.
For a deeper quantitative dive into DigitalOcean’s valuation dynamics, you may find the analytics on ValueRay worth exploring.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 251.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 3.33 > 1.0 |
| NWC/Revenue: 4.93% < 20% (prev 49.70%; Δ -44.76% < -1%) |
| CFO/TA 0.19 > 3% & CFO 327.7m > Net Income 251.9m |
| Net Debt (1.36b) to EBITDA (341.1m): 3.98 < 3 |
| Current Ratio: 1.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (103.0m) vs 12m ago 0.43% < -2% |
| Gross Margin: 59.54% > 18% (prev 0.59%; Δ 5895 % > 0.5%) |
| Asset Turnover: 53.13% > 50% (prev 49.56%; Δ 3.57% > 0%) |
| Interest Coverage Ratio: 18.34 > 6 (EBITDA TTM 341.1m / Interest Expense TTM 11.7m) |
Altman Z'' 0.88
| A: 0.02 (Total Current Assets 367.6m - Total Current Liabilities 325.0m) / Total Assets 1.73b |
| B: -0.04 (Retained Earnings -69.4m / Total Assets 1.73b) |
| C: 0.13 (EBIT TTM 214.9m / Avg Total Assets 1.63b) |
| D: -0.04 (Book Value of Equity -70.3m / Total Liabilities 1.80b) |
| Altman-Z'' Score: 0.88 = B |
Beneish M -3.09
| DSRI: 0.84 (Receivables 84.4m/88.3m, Revenue 864.0m/756.6m) |
| GMI: 1.00 (GM 59.54% / 59.37%) |
| AQI: 1.02 (AQ_t 0.32 / AQ_t-1 0.32) |
| SGI: 1.14 (Revenue 864.0m / 756.6m) |
| TATA: -0.04 (NI 251.9m - CFO 327.7m) / TA 1.73b) |
| Beneish M-Score: -3.09 (Cap -4..+1) = AA |
What is the price of DOCN shares?
Over the past week, the price has changed by +13.88%, over one month by +16.50%, over three months by +33.64% and over the past year by +43.03%.
Is DOCN a buy, sell or hold?
- StrongBuy: 3
- Buy: 4
- Hold: 6
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the DOCN price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 56.2 | -10.7% |
| Analysts Target Price | 56.2 | -10.7% |
| ValueRay Target Price | 66.1 | 5% |
DOCN Fundamental Data Overview February 04, 2026
P/E Forward = 27.5482
P/S = 6.3338
P/B = 67.9206
P/EG = 1.8713
Revenue TTM = 864.0m USD
EBIT TTM = 214.9m USD
EBITDA TTM = 341.1m USD
Long Term Debt = 1.28b USD (from longTermDebt, last quarter)
Short Term Debt = 148.9m USD (from shortTermDebt, last quarter)
Debt = 1.59b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.36b USD (from netDebt column, last quarter)
Enterprise Value = 6.83b USD (5.47b + Debt 1.59b - CCE 236.6m)
Interest Coverage Ratio = 18.34 (Ebit TTM 214.9m / Interest Expense TTM 11.7m)
EV/FCF = 40.34x (Enterprise Value 6.83b / FCF TTM 169.3m)
FCF Yield = 2.48% (FCF TTM 169.3m / Enterprise Value 6.83b)
FCF Margin = 19.59% (FCF TTM 169.3m / Revenue TTM 864.0m)
Net Margin = 29.15% (Net Income TTM 251.9m / Revenue TTM 864.0m)
Gross Margin = 59.54% ((Revenue TTM 864.0m - Cost of Revenue TTM 349.6m) / Revenue TTM)
Gross Margin QoQ = 59.63% (prev 59.87%)
Tobins Q-Ratio = 3.96 (Enterprise Value 6.83b / Total Assets 1.73b)
Interest Expense / Debt = 0.32% (Interest Expense 5.04m / Debt 1.59b)
Taxrate = 13.52% (13.2m / 97.7m)
NOPAT = 185.8m (EBIT 214.9m * (1 - 13.52%))
Current Ratio = 1.13 (Total Current Assets 367.6m / Total Current Liabilities 325.0m)
Debt / Equity = -22.89 (negative equity) (Debt 1.59b / totalStockholderEquity, last quarter -69.6m)
Debt / EBITDA = 3.98 (Net Debt 1.36b / EBITDA 341.1m)
Debt / FCF = 8.02 (Net Debt 1.36b / FCF TTM 169.3m)
Total Stockholder Equity = -164.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 15.49% (Net Income 251.9m / Total Assets 1.73b)
RoE = -153.0% (negative equity) (Net Income TTM 251.9m / Total Stockholder Equity -164.6m)
RoCE = 19.19% (EBIT 214.9m / Capital Employed (Equity -164.6m + L.T.Debt 1.28b))
RoIC = 14.58% (NOPAT 185.8m / Invested Capital 1.27b)
WACC = 10.54% (E(5.47b)/V(7.07b) * Re(13.53%) + D(1.59b)/V(7.07b) * Rd(0.32%) * (1-Tc(0.14)))
Discount Rate = 13.53% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 5.81%
[DCF Debug] Terminal Value 73.46% ; FCFF base≈141.1m ; Y1≈174.1m ; Y5≈296.5m
Fair Price DCF = 21.16 (EV 3.29b - Net Debt 1.36b = Equity 1.94b / Shares 91.5m; r=10.54% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 32.78 | EPS CAGR: -22.57% | SUE: -4.0 | # QB: 0
Revenue Correlation: 97.31 | Revenue CAGR: 18.98% | SUE: 2.11 | # QB: 1
EPS next Quarter (2026-03-31): EPS=0.45 | Chg30d=-0.002 | Revisions Net=-2 | Analysts=13
EPS next Year (2026-12-31): EPS=1.95 | Chg30d=-0.007 | Revisions Net=-2 | Growth EPS=-4.9% | Growth Revenue=+18.9%