DOCN PE Ratio & Valuation, Is DOCN Overvalued

Historical Valuation

DigitalOcean Holdings Inc (DOCN) is now in the Fair zone, suggesting that its current forward PS ratio of 4.40 is considered Fairly compared with the five-year average of 49.56. The fair price of DigitalOcean Holdings Inc (DOCN) is between 38.27 to 130.12 according to relative valuation method.

Relative Value

Fair Zone

38.27-130.12

Current Price：57.53

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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DigitalOcean Holdings Inc (DOCN) has a current Price-to-Book (P/B) ratio of -64.34. Compared to its 3-year average P/B ratio of -15.75, the current P/B ratio is approximately 308.62% higher. Relative to its 5-year average P/B ratio of 5.43, the current P/B ratio is about -1284.44% higher. DigitalOcean Holdings Inc (DOCN) has a Forward Free Cash Flow (FCF) yield of approximately 3.92%. Compared to its 3-year average FCF yield of 3.70%, the current FCF yield is approximately 5.94% lower. Relative to its 5-year average FCF yield of 2.52%, the current FCF yield is about 55.67% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for DOCN competitors is 5.85, providing a benchmark for relative valuation. DigitalOcean Holdings Inc Corp (DOCN.N) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 18.28%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of DOCN increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of DOCN in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is DOCN currently overvalued or undervalued?

What is DigitalOcean Holdings Inc (DOCN) fair value?

DOCN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of DigitalOcean Holdings Inc (DOCN) is between 38.27 to 130.12 according to relative valuation method.

How does DOCN's valuation metrics compare to the industry average?

The average P/S ratio for DOCN's competitors is 5.85, providing a benchmark for relative valuation. DigitalOcean Holdings Inc Corp (DOCN) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of 18.28%, this premium appears unsustainable.

What is the current P/B ratio for DigitalOcean Holdings Inc (DOCN) as of Mar 11 2026?

As of Mar 11 2026, DigitalOcean Holdings Inc (DOCN) has a P/B ratio of -64.34. This indicates that the market values DOCN at -64.34 times its book value.

What is the current FCF Yield for DigitalOcean Holdings Inc (DOCN) as of Mar 11 2026?

As of Mar 11 2026, DigitalOcean Holdings Inc (DOCN) has a FCF Yield of 3.92%. This means that for every dollar of DigitalOcean Holdings Inc's market capitalization, the company generates 3.92 cents in free cash flow.

What is the current Forward P/E ratio for DigitalOcean Holdings Inc (DOCN) as of Mar 11 2026?

As of Mar 11 2026, DigitalOcean Holdings Inc (DOCN) has a Forward P/E ratio of 26.88. This means the market is willing to pay $26.88 for every dollar of DigitalOcean Holdings Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for DigitalOcean Holdings Inc (DOCN) as of Mar 11 2026?

As of Mar 11 2026, DigitalOcean Holdings Inc (DOCN) has a Forward P/S ratio of 4.40. This means the market is valuing DOCN at $4.40 for every dollar of expected revenue over the next 12 months.

DOCN Valuation