DOCN Relative Valuation
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. If the market price exceeds this fair value range, DOCN is overvalued; if below, it's undervalued.
Historical Valuation
DigitalOcean Holdings Inc (DOCN) is now in the Fair zone, suggesting that its current forward PS ratio of 0.00 is considered Fairly compared with the five-year average of 49.93. The fair price of DigitalOcean Holdings Inc (DOCN) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：45.89
Fair
25.23
PE
1Y
3Y
5Y
Trailing
Forward
14.10
EV/EBITDA
DigitalOcean Holdings Inc. (DOCN) has a current EV/EBITDA of 14.10. The 5-year average EV/EBITDA is 20.54. The thresholds are as follows: Strongly Undervalued below -4.45, Undervalued between -4.45 and 8.04, Fairly Valued between 33.03 and 8.04, Overvalued between 33.03 and 45.52, and Strongly Overvalued above 45.52. The current Forward EV/EBITDA of 14.10 falls within the Historic Trend Line -Fairly Valued range.
21.02
EV/EBIT
DigitalOcean Holdings Inc. (DOCN) has a current EV/EBIT of 21.02. The 5-year average EV/EBIT is 41.27. The thresholds are as follows: Strongly Undervalued below -28.80, Undervalued between -28.80 and 6.24, Fairly Valued between 76.31 and 6.24, Overvalued between 76.31 and 111.35, and Strongly Overvalued above 111.35. The current Forward EV/EBIT of 21.02 falls within the Historic Trend Line -Fairly Valued range.
4.12
PS
DigitalOcean Holdings Inc. (DOCN) has a current PS of 4.12. The 5-year average PS is 6.40. The thresholds are as follows: Strongly Undervalued below -2.44, Undervalued between -2.44 and 1.98, Fairly Valued between 10.82 and 1.98, Overvalued between 10.82 and 15.24, and Strongly Overvalued above 15.24. The current Forward PS of 4.12 falls within the Historic Trend Line -Fairly Valued range.
11.38
P/OCF
DigitalOcean Holdings Inc. (DOCN) has a current P/OCF of 11.38. The 5-year average P/OCF is 20.37. The thresholds are as follows: Strongly Undervalued below -13.66, Undervalued between -13.66 and 3.36, Fairly Valued between 37.39 and 3.36, Overvalued between 37.39 and 54.41, and Strongly Overvalued above 54.41. The current Forward P/OCF of 11.38 falls within the Historic Trend Line -Fairly Valued range.
22.71
P/FCF
DigitalOcean Holdings Inc. (DOCN) has a current P/FCF of 22.71. The 5-year average P/FCF is 77.92. The thresholds are as follows: Strongly Undervalued below -134.32, Undervalued between -134.32 and -28.20, Fairly Valued between 184.04 and -28.20, Overvalued between 184.04 and 290.16, and Strongly Overvalued above 290.16. The current Forward P/FCF of 22.71 falls within the Historic Trend Line -Fairly Valued range.
DigitalOcean Holdings Inc (DOCN) has a current Price-to-Book (P/B) ratio of -60.29. Compared to its 3-year average P/B ratio of -6.99 , the current P/B ratio is approximately 762.60% higher. Relative to its 5-year average P/B ratio of 6.60, the current P/B ratio is about -1013.54% higher. DigitalOcean Holdings Inc (DOCN) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.61%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.49% , the current FCF yield is about -100.00% lower.
-60.76
P/B
Median3y
-6.99
Median5y
6.60
4.18
FCF Yield
Median3y
3.61
Median5y
2.49
Competitors Valuation Multiple
The average P/S ratio for DOCN's competitors is 5.33, 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 15.69%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DOCN increased by 35.75% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 16.60 to 68.97.
The secondary factor is the Revenue Growth, contributed 15.69%to the performance.
Overall, the performance of DOCN in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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