# DigitalOcean Holdings Inc. (DOCN) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Technology / Software. Price $90.50, market value $10.6 billion.

## Valuation
- **P/E (trailing): 312.1×** (5-yr avg 80.3×, 3-yr avg 80.3×). DigitalOcean Holdings Inc. trades at 312.1× trailing earnings, well above its own five-year average of 80.3×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 46.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.25**. A PEG of 0.25 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 10.5×**. Each dollar of revenue is priced at 10.5×, a level that requires very high margins or very fast growth to justify.
- **EV / EBITDA: 36.3×**. Enterprise value is 36.3× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 1.8%** (5-yr avg 2.8%). Free cash flow equals 1.8% of the market value, below its five-year average of 2.8%, so the shares are pricier on cash than usual.
- **Earnings yield: 0.3%**. The inverse of the P/E: 0.3% of the price is earned each year.

## Profitability
- **Gross margin: 57.2%**. DigitalOcean Holdings Inc. keeps 57.2% of revenue after the direct cost of what it sells.
- **Operating margin: 14.8%**. 14.8% of revenue is left after running the business.
- **Net margin: 28.8%**. 28.8% of each dollar of sales reaches the bottom line.
- **Return on equity: -903.7%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 11.7%**. Return on all capital, debt included, is 11.7%.
- **Return on assets: 12.8%**. Each dollar of assets produces 12.8% of profit.

## Growth
- **Revenue growth (1 yr): 15.5%** (3-yr 16.1%/yr, 5-yr 23.1%/yr). Revenue grew 15.5% over the last year, against 23.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 183.1%**. Earnings per share rose 183.1%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 26.7%/yr**. Free cash flow has compounded at 26.7% a year over three years.

## Financial health
- **Net debt / EBITDA: 3.2×**. It would take 3.2 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Current ratio: 0.69** (quick 0.69). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 4.05**. A Z-score of 4.05 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend: none**. DigitalOcean Holdings Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (15 analysts). 15 analysts cover DigitalOcean Holdings Inc.; the consensus is strong_buy, with an average price target of $173.80 (+92% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 120.8%** (YTD 86.6%, 3-mo -29.4%). The shares are up 120.8% over twelve months including dividends.
- **From 52-week high: -51.7%** (135.4% above the low). Trading 52% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 34**. An RSI of 34 is neutral.
- **Beta (1 yr): 2.75** (volatility 89%). Beta of 2.75 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DOCN · Page: https://foliofundamentals.com/stocks/docn

Not investment advice.