DigitalOcean Holdings (DOCN) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

DigitalOcean Holdings

NYSE•Technology•Software - Infrastructure

$123.76+5.91(0.05%)Pre-market

Market Cap

$13.91B

P/E

59.1x

P/S

13.8x

P/B

14.9x

DigitalOcean Holdings, Inc., through its subsidiaries, operates an agentic inference cloud platform in North America, Europe, Asia, and internationally. The company provides AI and Digital Native Enterprises build, run, and scale intelligent applications for growing technology companies. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute, storage, and networking products, including cloud firewalls, managed load balancers, NAT gateways, and virtual private cloud software, as well as IP address management and domain name system management. In addition, the company provides platform-as-a-service (PaaS) and software-as-a-service (SaaS) solutions, such as managed databases; managed Kubernetes and container registry; application platform to build, deploy, and scale applications; Functions, a serverless compute solution; and Uptime for real-time uptime and latency alerts, as well as managed hosting and DigitalOcean Marketplace, a platform where developers can find pre-configured applications and solutions. Further, it offers artificial intelligence (AI)/machine learning (ML) applications comprising GPU droplets; bare metal GPUS, which provides access to a GPU server without any virtualization layer and gives developers with customizable server for their use case; and Jupyter Notebooks that provides cloud workspace and managed interactive development environment for exploring data and training, and building machine learning models. Its customers use its platform in various industry verticals, such as online gaming, fintech, and cybersecurity, as well as for a range of use cases, including building and hosting websites, web and mobile applications development, AI integration, and building AI products and applications. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in Broomfield, Colorado.

How this company scores

ExcellentMetricSide Score: 82/100

Strongest: Cash & Earnings Quality (23/25); weakest: Balance Sheet & Red Flags (17/25).

Profitability20/25

Growth22/25

Balance Sheet & Red Flags17/25

Cash & Earnings Quality23/25

Strengths

Growing revenueRising free cash flowHigh ROERising earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 59.1x5y range 12.8x – 167.0x

Currently above its 11-quarter median.

P/S · 13.8x5y range 3.1x – 17.9x

Currently above its 19-quarter median.

P/B · 14.9x5y range 8.2x – 115.9x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Share Dilution

Red Flag

Shares outstanding increased 13.5% — significant dilution, likely from stock compensation or capital raises.

Price & Volume

Market Cap $13.91B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.01B
Q. Revenue: $281.18M
TTM EBITDA: $321.77M
TTM Op. Income: $149.67M
Q. Op. Income: $29.37M
TTM Net Income: $235.24M
Q. Net Income: $35.44M
EPS: $0.34
Shares Out.: $104.61M

$1.01B in TTM revenue grew 21.4% YoY, reaching $281.18M last quarter. TTM EBITDA of $321.77M and TTM operating income of $149.67M show growth is flowing through to the bottom line. TTM net income of $235.24M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 55.0%
EBITDA Margin: 28.6%
Op. Margin: 10.4%
Net Margin: 12.6%

Op. margin of 10.4% is down 5.8% YoY — costs are rising relative to revenue. Net margin at 12.6% and gross margin of 55.0% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 3 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 59.1x
P/S Ratio: 13.8x
P/B Ratio: 14.9x

At 59.1x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 13.8x and P/B of 14.9x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 3 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $3.12B
Cash: $767.03M
Long-Term Debt: $609.40M
Book Value: $930.73M
D/E Ratio: 0.7
Debt/EBITDA: 7.6

With $3.12B in assets and $609.40M in long-term debt, D/E is 0.7and book value is $930.73M — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 0% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $109.97M
TTM Free Cash Flow: $194.45M
FCF Margin: 19.2%
FCF / Net Income: 0.8

TTM FCF of $194.45M on $109.97M in operating cash flow. The FCF / Net Income ratio of 0.8x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 5 consecutive quarters — an improving trend.