DigitalOcean Holdings, Inc. (DOCN) Stock Analysis
Market Closed
Sector: Technology · Industry: Services-Computer Programming, Data Processing, Etc.
What's happening with DOCN
Price History
5-Year Weekly Candlestick Chart
Profile
Strong profitability and financial health; valuation and growth lag behind.
How is each axis scored?
- Valuation10/100 · Weak
- P/E vs own history (94th pct)0/25
- FCF yield (1.1%)5/25
- P/S (18.2x)5/25
- EV/EBIT (110.2x)0/25
- Growth25/100 · Weak
- Revenue CAGR (20.4%)25/25
- Net income CAGR (n/a)0/25
- EPS CAGR 5Y (n/a)0/25
- Fwd implied growth (-30.2%)0/25
- Profitability90/100 · Strong
- ROIC (16.3%)20/25
- ROE (26.7%)25/25
- Net margin (25.0%)25/25
- Operating margin (16.4%)20/25
- Financial Health87/100 · Strong
- Altman Z (6.18)25/25
- Current ratio (1.46)12/25
- Interest coverage (15.7x)25/25
- Net cash / debt (Net cash)25/25
- Quality74/100 · Moderate
- Piotroski F (7/9)22/25
- Beneish M (-2.57)25/25
- FCF conversion (78%)15/25
- Margin stability (σ 10.4%)12/25
About DigitalOcean Holdings, Inc.
DigitalOcean Holdings Inc is a cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups, and small and medium-sized businesses. Show more
The customers use the platform for a wide range of cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, and managed services, among many others. Geographically, the company generates maximum revenue from North America and also has a presence in Europe, Asia, and the Rest of the world.
Headquarters: BROOMFIELD, CO · Employees: 1,462 · Website ↗
Analyst Consensus
Strong BuyWall Street consensus estimates — not a PMP forecast · Updated Sep 21, 2026
Insider Transactions
Recent SEC Form 4 filings
- SellOpen market sale · filed 2026-08-11-4200 sh2026-08-07
- BuyGrant / award · filed 2026-07-01+93 sh2026-06-30
- BuyGrant / award · filed 2026-07-01+93 sh2026-06-30
- BuyGrant / award · filed 2026-07-01+142 sh2026-06-30
- BuyGrant / award · filed 2026-07-01+112 sh2026-06-30
+3 more recent filings
Key Metrics
Financial snapshot — pillar inputs plus per-share and market context
Valuation
10EP/E (TTM)69.6xD
Grade D: Exp.Price / TTM EPS (own statements) — vs own 5Y history: 14.0x–85.7x · 94th pct
P/FCF195.9xD
Grade D: Exp.Price / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield1.1%C
Grade C: LowTTM FCF / Market Cap — vs own 5Y history: 0.2%–6.4% · 18th pct
P/S (TTM)18.25xD
Grade D: Exp.Price / TTM Revenue (own statements) — vs own 5Y history: 2.9x–37.2x · 92nd pct
EV/EBIT110.2xD
Grade D: Exp.Enterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 28.5x–10069.8x · 94th pct
EV/Sales15.9xD
Grade D: V.Exp.Enterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E99.6xD
Grade D: Exp.Price / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio19.51xD
Grade D: V.Exp.Price to Book Value. Neg. equity = heavy buybacks
PEG Ratio0.82A
Grade A: CheapFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
90A+ROIC16.3%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE26.7%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA10.2%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin25.0%A
Grade A: HighNet Income / Revenue
Operating Margin16.4%C
Grade C: AvgTTM EBIT / TTM Revenue
Gross Margin58.5%A
Grade A: PremiumGross Profit / Revenue
FCF Margin19.5%A
Grade A: HighFCF / Revenue
True FCF Margin10.7%C
Grade C: AvgTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Financial Health
87AAltman Z-Score6.18A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.46xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio0.61xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage15.7xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.69xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt1.22xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Growth
25ERevenue CAGR20.4%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR—
Compound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)—
Compound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Forward Growth-30.2%D
Grade D: Decl.Implied 1Y EPS growth from forward P/E vs our TTM EPS. Sparse — only where forward estimates exist
Dilution (5Y)+126.4%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income35.2%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue8.8%D
Grade D: HighTTM stock-based comp / TTM Revenue
Quality
2/5 Loss Years74B+Piotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.57A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion78.3%C
Grade C: AvgFCF / Net Income
Margin Stability10.4%C
Grade C: AvgEBIT margin std deviation. Lower = stable
Capex / Revenue11.3%C
Grade C: AvgTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.49xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Per Share
EPS (TTM)$2.12
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$2.77
Cash & short-term investments per share (Finnhub)
Book Value / Share$0.49
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$608.47M
Total debt obligations (short + long term)
Cash & Equiv.$741.36M
Cash and short-term investments
Net Debt$-132.90MA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$887.38M
Shareholders' equity (book value)
Asset / Liability1.53xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$17.31B
Current Market Capitalization
Beta1.65C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
Takeaway
Excelentná ziskovosť a absolútna finančná stabilita DOCN sú momentálne zatienené extrémnym nadhodnotením s FCF výnosom na úrovni iba 1,1 %.
Company is effectively debt-free after netting cash. · Current P/E of 69.9x sits at the 94th percentile of its historical range.
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Mar 2026 · Ratio snapshot Sep 22, 2026
Key Insights: DigitalOcean Holdings, Inc. (DOCN)
Composite verdict for DigitalOcean Holdings, Inc.: Excelentná ziskovosť a absolútna finančná stabilita DOCN sú momentálne zatienené extrémnym nadhodnotením s FCF výnosom na úrovni iba 1,1 %.. DigitalOcean Holdings, Inc. meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 6.18 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.57 suggests a low likelihood of earnings manipulation. Revenue has compounded at roughly 20% annually — a strong growth profile.
- DigitalOcean Holdings, Inc. converts about 20% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- DigitalOcean Holdings, Inc. posted a net loss in 2 of 5 available completed fiscal years (2021–2025).
- At a valuation score of 10/100, DOCN trades at a premium to its historical multiples (P/E 69.6).
- Return on equity of 26.7% is well above the market average.
See how DOCN ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all DOCN moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Sep 21 | Regular | 147.08 | +13.01% | 8.68 |
| Sep 21 | After-hours | 147.20 | +13.11% | 8.74 |
Frequently Asked Questions about DOCN
Is DOCN stock a buy right now?
PreMarketPrice's quantitative model rates DigitalOcean Holdings, Inc.'s financial health at 87/100 — Excelentná ziskovosť a absolútna finančná stabilita DOCN sú momentálne zatienené extrémnym nadhodnotením s FCF výnosom na úrovni iba 1,1 %.. This is a data-driven snapshot of fundamentals, not investment advice.
Is DOCN stock overvalued?
DigitalOcean Holdings, Inc. trades at a trailing P/E of 69.6 and our valuation score rates it 10/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does DigitalOcean Holdings, Inc. report earnings?
No confirmed earnings date is currently scheduled for DOCN. The Earnings section lists recent reports and updates as dates are announced.
What sector does DigitalOcean Holdings, Inc. operate in?
DigitalOcean Holdings, Inc. operates in the Technology sector, within the Services-Computer Programming, Data Processing, Etc. industry. The Related Stocks section lists sector peers for comparison.
What does DigitalOcean Holdings, Inc. do?
DigitalOcean Holdings Inc is a cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups, and small and medium-sized businesses.
About DigitalOcean Holdings, Inc. (DOCN) Stock
DigitalOcean Holdings, Inc. (DOCN) is a US-listed stock operating in the Technology sector, specifically the Services-Computer Programming, Data Processing, Etc. industry. Real-time pricing data for DigitalOcean Holdings, Inc. is available on this page with a market capitalization of $17.3 billion. The financial health score for DOCN is 87/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for DOCN stock.
DOCN Stock Analysis & Key Metrics
On PreMarketPrice, you can track DigitalOcean Holdings, Inc. (DOCN) across multiple dimensions:
- Pre-market price & movement: Real-time DOCN stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for DOCN with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for DigitalOcean Holdings, Inc. across multiple reporting periods.
- Financial health score: A composite score of 87/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for DOCN.
- Sector peers: Compare DOCN against 10 other technology stocks on key financial metrics.
Is DOCN a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate DigitalOcean Holdings, Inc. (DOCN) as an investment. The financial health score of 87/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.DigitalOcean Holdings, Inc. (DOCN) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.