DigitalOcean Holdings, Inc. (DOCN) Valuation
Historical valuation analysis based on 500 data points (2024-09-23 to 2026-09-21)
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. The customers use the...
DigitalOcean Holdings, Inc. (DOCN) currently trades at a P/E ratio of 69.07 (historical range: 13.97–85.67, median: 35.81), placing it at the 92th percentile — expensive relative to its history, P/S ratio of 17.24 (range: 3.14–21.39, 92th percentile — expensive relative to its history), EV/EBITDA of 104.06 (range: 28.49–129.27, 92th percentile).
DigitalOcean Holdings, Inc. appears overvalued relative to its own historical valuation range, trading at elevated multiples across most metrics.
Historical Valuation Metrics
| Metric | Current | Min | Median | Max | Percentile | Assessment |
|---|---|---|---|---|---|---|
| P/E Ratio | 69.07 | 13.97 | 35.81 | 85.67 | 92th | expensive relative to its history |
| P/S Ratio | 17.24 | 3.14 | 5.35 | 21.39 | 92th | expensive relative to its history |
| EV/EBITDA | 104.06 | 28.49 | 60.77 | 129.27 | 92th | expensive relative to its history |
| FCF Yield | 0.01 | 0.01 | 0.03 | 0.05 | 7th | expensive relative to its history |
DigitalOcean Holdings, Inc. (DOCN) Valuation & P/E History
DigitalOcean Holdings, Inc. (DOCN) is a US-listed stock operating in the Technology sector, specifically the Services-Computer Programming, Data Processing, Etc. industry currently trading at $147.20 with a market capitalization of $17.3 billion. This page provides historical valuation analysis for DOCN based on 500 data points covering 2024-09-23 to 2026-09-21. The P/E ratio of 69.07 is above the historical median of 35.81, placing DOCN at the 92th percentile of its valuation range. The P/S ratio of 17.24 compares to a median of 5.35.
DOCN Valuation Metrics & Historical Range
The valuation table above shows DigitalOcean Holdings, Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether DOCN is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests DOCN is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for DigitalOcean Holdings, Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is DOCN Overvalued or Undervalued?
DigitalOcean Holdings, Inc. appears overvalued relative to its own historical valuation range, trading at elevated multiples across most metrics. The overall valuation percentile of 92 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive DOCN is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full DOCN analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.DOCN trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.