DOCN
DigitalOcean Holdings Inc
$135.42
▲ 4.1%Updated Today 12:11 PM ET
DOCN at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 47/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 361.3% over the last 12 months
Market Cap
$13.58B
P/E
57.34x
Forward P/E (est.)
40.96x
ROE
1.8%
Revenue Growth
17.6%
EPS Growth
104.1%
Profit Margin
25.0%
FCF Yield
0.6%
Debt / Equity
30.91x
ROIC
7.0%
Interest Coverage
17.55x
Current Ratio
1.46x
Dividend Yield
—
Implied Growth (rev. DCF)
7.6%
Rating Score
47/100
DigitalOcean Holdings Inc (DOCN) is a large-cap company in the Technology industry, part of the Information Technology sector of the S&P 500, with a market value around $13.58B.
In its latest reported year it generated about $901.43M in revenue and $259.26M in net profit.
Our model rates DOCN Neutral (47/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what DOCN's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. DOCN trades near $135.42, around its 50-day average ($150.12) and 200-day average ($79.10). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 34 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. DOCN's is $13.83 (~10.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month DOCN found buyers near $126.05 (support) and sellers near $187.50 (resistance); its 52-week range is $25.56–$187.50. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.3× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
20.4%
Revenue moved from $254.82M in 2019 to $901.43M in 2025, a 23.4% compound annual growth rate. The most recent year grew a strong 17.6% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
59.9%
Operating Margin
17.4%
Net Margin
28.8%
ROE
1.8%
DigitalOcean Holdings Inc keeps about 25.0% of each sales dollar as net profit, with a 59.9% gross margin and 17.4% operating margin. Return on equity is 1.8% and return on invested capital about 7.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$919.72M
Net Debt
$178.36M
Net Debt / EBITDA
1.14x
Debt / Equity
30.91x
Leverage: debt-to-equity is 30.9x, and operating profit covers interest about 17.6x, with a current ratio of 1.5x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $919.72M of total debt against $741.36M of cash.
Operating CF
$309.60M
Free Cash Flow
$180.52M
FCF Margin
20.0%
In the latest year DigitalOcean Holdings Inc produced about $309.60M of operating cash flow and $180.52M of free cash flow after capital spending. That is a free-cash-flow yield of about 0.6% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
57.34x
P/S
15.07x
P/B
51.56x
EV / EBITDA
46.73x
DOCN trades at 57.3x trailing earnings (about 41.0x on estimated forward earnings), 15.1x sales, and 51.6x book value. Reverse-engineering today's price implies the market expects roughly 7.6% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$63.02
Current price
$135.42
Starting FCF (latest 10-K)
$180.52M
Growth, years 1–5
17.6%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where DOCN sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 57 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How DOCN stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (137 S&P 500 companies), DOCN ranks #47 of 137 by our overall rating. It trades at a premium versus the sector on earnings (57.3x P/E vs. 44.5x median) with a lower return on equity (1.8% vs. 21.1%) and slower revenue growth (17.6% vs. 18.1%).
P/E vs sector
57.3x
median 44.5x
ROE vs sector
1.8%
median 21.1%
Growth vs sector
17.6%
median 18.1%
Sector rank
#47
of 137 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 137 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $135.42 today · expected CAGR 8% – 19%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $1.06B | $1.26B | $1.48B | $1.75B | $2.06B |
| Net income | $308.47M | $363.99M | $429.51M | $506.82M | $598.05M |
| EPS | $2.96 | $3.49 | $4.12 | $4.86 | $5.73 |
| Share price (low) | $100.49 | $118.58 | $139.93 | $165.11 | $194.83 |
| Share price (high) | $168.47 | $198.80 | $234.58 | $276.81 | $326.63 |
| CAGR (low–high) | -26% / 24% | -6% / 21% | 1% / 20% | 5% / 20% | 8% / 19% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for DOCN:
- Revenue is growing 17.6% a year, a sign of real demand.
- High net margins (25.0%) point to pricing power or efficiency.
The case against DOCN:
- Elevated leverage (debt/equity 30.9x) adds financial risk.
- A rich 57.3x earnings multiple prices in a lot of growth.
- Limited free cash flow at today's price.
Valuation risk — at 57.3x earnings, disappointing results could compress the multiple.
Balance-sheet risk — debt/equity of 30.9x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: DigitalOcean Holdings Inc is a large-cap information technology business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 57.3x earnings, which our model scores Neutral (47/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
DOCN — frequently asked questions
Is DOCN a good stock to buy?
We don't give buy or sell advice. Our model rates DigitalOcean Holdings Inc Neutral (47/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is DOCN's rating on The Stocks School?
DigitalOcean Holdings Inc currently scores 47/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does DOCN's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from DigitalOcean Holdings Inc's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for DOCN calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this DOCN analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell DOCN. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.