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DOCN Valuation

DigitalOcean Holdings Inc
$
31.700
+0.66(2.126%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

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.
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Historical Valuation

DigitalOcean Holdings Inc (DOCN) is now in the Undervalued zone, suggesting that its current forward PS ratio of 2.97 is considered Undervalued compared with the five-year average of 51.95. The fair price of DigitalOcean Holdings Inc (DOCN) is between 34.93 to 111.60 according to relative valuation methord. Compared to the current price of 31.56 USD , DigitalOcean Holdings Inc is Undervalued By 9.64%.
Relative Value
Fair Zone
34.93-111.60
Current Price:31.56
9.64%
Undervalued
16.11
PE
1Y
3Y
5Y
Trailing
Forward
11.14
EV/EBITDA
DigitalOcean Holdings Inc. (DOCN) has a current EV/EBITDA of 11.14. The 5-year average EV/EBITDA is 21.07. The thresholds are as follows: Strongly Undervalued below -4.38, Undervalued between -4.38 and 8.34, Fairly Valued between 33.80 and 8.34, Overvalued between 33.80 and 46.52, and Strongly Overvalued above 46.52. The current Forward EV/EBITDA of 11.14 falls within the Historic Trend Line -Fairly Valued range.
16.55
EV/EBIT
DigitalOcean Holdings Inc. (DOCN) has a current EV/EBIT of 16.55. The 5-year average EV/EBIT is 42.79. The thresholds are as follows: Strongly Undervalued below -28.59, Undervalued between -28.59 and 7.10, Fairly Valued between 78.48 and 7.10, Overvalued between 78.48 and 114.17, and Strongly Overvalued above 114.17. The current Forward EV/EBIT of 16.55 falls within the Historic Trend Line -Fairly Valued range.
2.97
PS
DigitalOcean Holdings Inc. (DOCN) has a current PS of 2.97. The 5-year average PS is 6.59. The thresholds are as follows: Strongly Undervalued below -2.41, Undervalued between -2.41 and 2.09, Fairly Valued between 11.10 and 2.09, Overvalued between 11.10 and 15.60, and Strongly Overvalued above 15.60. The current Forward PS of 2.97 falls within the Historic Trend Line -Fairly Valued range.
8.58
P/OCF
DigitalOcean Holdings Inc. (DOCN) has a current P/OCF of 8.58. The 5-year average P/OCF is 21.08. The thresholds are as follows: Strongly Undervalued below -13.63, Undervalued between -13.63 and 3.73, Fairly Valued between 38.43 and 3.73, Overvalued between 38.43 and 55.78, and Strongly Overvalued above 55.78. The current Forward P/OCF of 8.58 falls within the Historic Trend Line -Fairly Valued range.
16.35
P/FCF
DigitalOcean Holdings Inc. (DOCN) has a current P/FCF of 16.35. The 5-year average P/FCF is 81.85. The thresholds are as follows: Strongly Undervalued below -135.17, Undervalued between -135.17 and -26.66, Fairly Valued between 190.36 and -26.66, Overvalued between 190.36 and 298.87, and Strongly Overvalued above 298.87. The current Forward P/FCF of 16.35 falls within the Historic Trend Line -Fairly Valued range.
DigitalOcean Holdings Inc (DOCN) has a current Price-to-Book (P/B) ratio of -16.14. Compared to its 3-year average P/B ratio of 6.68 , the current P/B ratio is approximately -341.75% higher. Relative to its 5-year average P/B ratio of 9.86, the current P/B ratio is about -263.64% higher. DigitalOcean Holdings Inc (DOCN) has a Forward Free Cash Flow (FCF) yield of approximately 3.66%. Compared to its 3-year average FCF yield of 3.34%, the current FCF yield is approximately 9.46% lower. Relative to its 5-year average FCF yield of 2.37% , the current FCF yield is about 54.29% lower.
-16.48
P/B
Median3y
6.68
Median5y
9.86
3.66
FCF Yield
Median3y
3.34
Median5y
2.37
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Competitors Valuation Multiple

The average P/S ratio for DOCN's competitors is 7.97, providing a benchmark for relative valuation. DigitalOcean Holdings Inc Corp (DOCN) exhibits a P/S ratio of 2.97, which is -62.81% above the industry average. Given its robust revenue growth of 13.62%, this premium appears unsustainable.
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Performance Decomposition

1Y
3Y
5Y
Market capitalization of DOCN decreased by 15.31% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.94 to 16.93.
The secondary factor is the Revenue Growth, contributed 13.62%to the performance.
Overall, the performance of DOCN in the past 1 year is driven by Margin Expansion. Which is more sustainable.
13.62%
192.48M → 218.70M
Revenue Growth
+
70.32%
9.94 → 16.93
Margin Expansion
+
-99.25%
3.21K → 24.10
P/E Change
=
-15.31%
37.43 → 31.70
Mkt Cap Growth

FAQ

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Is DigitalOcean Holdings Inc (DOCN) currently overvalued or undervalued?

DigitalOcean Holdings Inc (DOCN) is now in the Undervalued zone, suggesting that its current forward PS ratio of 2.97 is considered Undervalued compared with the five-year average of 51.95. The fair price of DigitalOcean Holdings Inc (DOCN) is between 34.93 to 111.60 according to relative valuation methord. Compared to the current price of 31.56 USD , DigitalOcean Holdings Inc is Undervalued By 9.64% .
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What is DigitalOcean Holdings Inc (DOCN) fair value?

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

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What is the current P/B ratio for DigitalOcean Holdings Inc (DOCN) as of Aug 19 2025?

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What is the current FCF Yield for DigitalOcean Holdings Inc (DOCN) as of Aug 19 2025?

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What is the current Forward P/E ratio for DigitalOcean Holdings Inc (DOCN) as of Aug 19 2025?

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What is the current Forward P/S ratio for DigitalOcean Holdings Inc (DOCN) as of Aug 19 2025?