Stock Analysis
DigitalOcean Holdings, Inc.DOCN
P/E 49.33×· 5Y range 13.97–85.67×· 66th percentile of history
Sector: Technology · Industry: Services-Computer Programming, Data Processing, Etc.
AnalystsStrong Buy24 analystsP/E 49.3× sits at the 66th percentile of its 5.065023956194388-year history.
Cash covers 39% of debt · Q2 2026.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Quality74
- Profitability67
Risks
- Growth25
Mixed picture — no clear quality or value edge.
Market context
-9.8% today· Z 2.2σ· RVOL 1.6×
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
- ✓Altman Z 3.1 — safe-zone balance sheet
- ✓ROE 25.3% — efficient capital deployment
- ✓Revenue CAGR 20.4% — durable top-line growth
What's happening with DOCN
Profile
valuation and growth lag behind.
How is each axis scored?
- Valuation15/100 · Weak
- P/E vs own history (66th pct)5/25
- FCF yield (1.3%)5/25
- P/S (11.3x)5/25
- EV/EBIT (84.1x)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 (-28.3%)0/25
- Profitability67/100 · Moderate
- ROIC (5.5%)5/25
- ROE (25.3%)25/25
- Net margin (23.3%)25/25
- Operating margin (14.8%)12/25
- Financial Health60/100 · Moderate
- Altman Z (3.12)25/25
- Current ratio (1.31)12/25
- Interest coverage (5.0x)18/25
- Net cash / debt (D/A 39%)5/25
- Quality74/100 · Moderate
- Piotroski F (7/9)22/25
- Beneish M (-2.57)25/25
- FCF conversion (61%)15/25
- Margin stability (σ 8.5%)12/25
- Moat55/100 · Moderate
- ROIC >12% years (1/5 yrs)0/25
- Median gross margin (59.9%)25/25
- FCF-positive years (5/5 yrs)25/25
- Worst-year net margin (worst -4.6%)5/25
Risk Flags
- ⚠SBC 9.4% of revenue — real dilution cost
- ⚠2 loss-making years in recent history
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 ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
15EP/E (TTM)48.4xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 14.0x–85.7x · 66th pct
P/FCF164.8xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative · Elevated investment — CapEx = 54% of operating cash flow, weighing on reported FCF
FCF Yield1.3%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 0.2%–6.4% · 27th pct · Elevated investment — CapEx = 54% of operating cash flow, weighing on reported FCF
P/S (TTM)11.25xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 2.9x–37.2x · 81st pct
EV/EBIT84.1xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 28.5x–10069.8x · 82nd pct
EV/Sales13.5xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E67.5xD
Grade D: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio12.23xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio0.69A
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
Elevated investment: Elevated investment — CapEx = 54% of operating cash flow, weighing on reported FCF
Profitability
67BROIC5.5%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE25.3%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 Margin23.3%A
Grade A: HighNet Income / Revenue
Operating Margin14.8%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin57.2%A
Grade A: PremiumGross Profit / Revenue
FCF Margin14.1%C
Grade C: AverageFCF / Revenue · Elevated investment — CapEx = 54% of operating cash flow, weighing on reported FCF
True FCF Margin4.7%D
Grade D: LowTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost · Elevated investment — CapEx = 54% of operating cash flow, weighing on reported FCF
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
Implied EPS Growth-28.3%D
Grade D: Decl.Analyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+50.2%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income40.4%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue9.4%D
Grade D: HighTTM stock-based comp / TTM Revenue
Financial Health
60BAltman Z-Score3.12A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.31xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.14xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage5.0xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment8.5yC
Grade C: AverageYears to repay net debt via FCF · Elevated investment — CapEx = 54% of operating cash flow, weighing on reported FCF
Net Debt/EBIT8.1xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity2.13xD
Grade D: HighDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.39xC
Grade C: PartialCash covers how much of total debt. >1 = could repay all debt from cash
Quality
74B+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 Conversion60.8%C
Grade C: AverageFCF / Net Income · Elevated investment — CapEx = 54% of operating cash flow, weighing on reported FCF
Margin Stability8.5%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue16.5%D
Grade D: HeavyTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.44xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Kumar Vinay S. Filed | Kumar Vinay S. | Tax withholding | -40022 | |
Arora Pratima Filed | Arora Pratima | Grant / award | +122 | |
Keffer Pueo Filed | Keffer Pueo | Grant / award | +122 | |
Adelman Warren J Filed | Adelman Warren J | Grant / award | +186 | |
SCHNEIDER HILARY Filed | SCHNEIDER HILARY | Grant / award | +147 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
JENSON WARREN Filed | JENSON WARREN | Grant / award | +152 | |
Srinivasan Padmanabhan T Filed | Srinivasan Padmanabhan T | SellOpen market sale | -11394 | |
Barrett Cherie Filed | Barrett Cherie | SellOpen market sale | -3985 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
55CROIC >12% Years1/5 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)59.9%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years5/5 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor-4.6%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$2.00
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$7.30
Cash & short-term investments per share (Finnhub)
Book Value / Share$8.86
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$1.98B
Total debt obligations (short + long term)
Cash & Equiv.$767.03M
Cash and short-term investments
Net Debt$1.21B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$930.73M
Shareholders' equity (book value)
Asset / Liability1.42xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$11.38B
Current Market Capitalization
Beta1.65C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
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 Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: DigitalOcean Holdings, Inc. (DOCN)
DOCN is down 9.85% at the last close. 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 3.12 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.
- Takes ~8.5 years to repay net debt from free cash flow.
- DigitalOcean Holdings, Inc. posted a net loss in 2 of 5 available completed fiscal years (2021–2025).
- At a valuation score of 15/100, DOCN trades at a premium to its historical multiples (P/E 48.4).
- Return on equity of 25.3% 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 |
|---|---|---|---|---|
| Oct 16 | Regular | 97.48 | -10.95% | -2.05 |
| Oct 16 | After-hours | 96.80 | -11.57% | -2.18 |
| Oct 14 | Regular | 109.47 | -14.62% | -3.58 |
| Oct 14 | After-hours | 108.00 | -15.76% | -3.88 |
| Oct 9 | After-hours | 135.19 | +9.11% | 2.07 |
Frequently Asked Questions about DOCN
What is the current DigitalOcean Holdings, Inc. (DOCN) stock price?
DOCN is trading at $98.69 at the last market close, down 9.85% on the session. PreMarketPrice tracks DOCN pre-market, intraday and after-hours prices.
Is DOCN stock a buy right now?
PreMarketPrice's quantitative model rates DigitalOcean Holdings, Inc.'s financial health at 60/100. 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 48.4 and our valuation score rates it 15/100 (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. As of the latest update, DigitalOcean Holdings, Inc. is trading at $98.69, down 9.85% on the day with a market capitalization of $11.4 billion. The financial health score for DOCN is 60/100, which indicates good 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 60/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for DOCN.
- Sector peers: Compare DOCN against 6 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 60/100 suggests good 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.