Stock AnalizDigitalOcean Holdings, Inc. DOCN
Computer Software: Programming Data Processing · IPO 2021 · data as of November 13, 2026
DigitalOcean Holdings, Inc. (DOCN) is a technology company listed in the US with a market value of about $10.2B. In the twelve months to September 30, 2026 it had revenue of $1.1B and net income of $34M, a net margin of 3.1%.
Its overall Stock Analiz score is 1.8 out of 5 (weak). The strongest part is future growth (5/5); the weakest is value (0/5).
Key numbers: a P/E of 308.3, a price to free cash flow of 41.7, 5-year revenue growth of 23% a year, a 5-year average ROIC of 2%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 47% below the current price.
Score: 1.8 / 5
Checks passed
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year revenue growth above 8% a year
- Positive free cash flow
- Interest covered more than 5 times
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- 5-year EPS growth above 10% a year
- 5-year average ROIC above 12%
- Profitable 5 years in a row
Valuation
Growth and quality
Financials, last 7 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.1B | $901M | $781M | $693M | $576M | $429M | $318M | $255M |
| Net income | $34M | $259M | $84M | $19M | -$28M | -$20M | -$44M | -$40M |
| Free cash flow | $244M | $181M | $105M | $116M | $89M | $36M | -$40M | -$14M |
| EPS (diluted) | $0.28 | $2.52 | $0.89 | $0.20 | $-0.28 | $-0.21 | $-1.05 | $-1.06 |
| Net margin | 3.1% | 28.8% | 10.8% | 2.8% | -4.8% | -4.5% | -13.7% | -15.8% |
| ROIC | — | 8.0% | 5.3% | 0.7% | -1.2% | -0.4% | -6.7% | — |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 15 analysts is $159.93, 85% above the current price; targets range from $100.00 to $220.00; the consensus rating is “Strong buy”; expected EPS is $1.63 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is DigitalOcean’s P/E ratio?
About 308.3, based on the last twelve months of diluted earnings per share (forward P/E about 51.8).
Is DigitalOcean stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 47% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does DigitalOcean pay a dividend?
Not currently.
Is DigitalOcean a good stock to buy?
We do not give buy or sell advice. DigitalOcean scores 1.8 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.