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 4.40 is considered Fairly compared with the five-year average of 49.56. The fair price of DigitalOcean Holdings Inc (DOCN) is between 39.52 to 125.69 according to relative valuation methord.
Relative Value
Fair Zone
39.52-125.69
Current Price：53.97
Fair
26.88
PE
1Y
3Y
5Y
14.89
EV/EBITDA
DigitalOcean Holdings Inc. (DOCN) has a current EV/EBITDA of 14.89. The 5-year average EV/EBITDA is 20.44. The thresholds are as follows: Strongly Undervalued below -4.38, Undervalued between -4.38 and 8.03, Fairly Valued between 32.85 and 8.03, Overvalued between 32.85 and 45.26, and Strongly Overvalued above 45.26. The current Forward EV/EBITDA of 14.89 falls within the Historic Trend Line -Fairly Valued range.
22.24
EV/EBIT
DigitalOcean Holdings Inc. (DOCN) has a current EV/EBIT of 22.24. The 5-year average EV/EBIT is 40.95. The thresholds are as follows: Strongly Undervalued below -28.71, Undervalued between -28.71 and 6.12, Fairly Valued between 75.78 and 6.12, Overvalued between 75.78 and 110.61, and Strongly Overvalued above 110.61. The current Forward EV/EBIT of 22.24 falls within the Historic Trend Line -Fairly Valued range.
4.40
PS
DigitalOcean Holdings Inc. (DOCN) has a current PS of 4.40. The 5-year average PS is 6.37. The thresholds are as follows: Strongly Undervalued below -2.41, Undervalued between -2.41 and 1.98, Fairly Valued between 10.76 and 1.98, Overvalued between 10.76 and 15.15, and Strongly Overvalued above 15.15. The current Forward PS of 4.40 falls within the Historic Trend Line -Fairly Valued range.
12.15
P/OCF
DigitalOcean Holdings Inc. (DOCN) has a current P/OCF of 12.15. The 5-year average P/OCF is 20.23. The thresholds are as follows: Strongly Undervalued below -13.59, Undervalued between -13.59 and 3.32, Fairly Valued between 37.14 and 3.32, Overvalued between 37.14 and 54.05, and Strongly Overvalued above 54.05. The current Forward P/OCF of 12.15 falls within the Historic Trend Line -Fairly Valued range.
24.23
P/FCF
DigitalOcean Holdings Inc. (DOCN) has a current P/FCF of 24.23. The 5-year average P/FCF is 77.01. The thresholds are as follows: Strongly Undervalued below -133.90, Undervalued between -133.90 and -28.45, Fairly Valued between 182.47 and -28.45, Overvalued between 182.47 and 287.92, and Strongly Overvalued above 287.92. The current Forward P/FCF of 24.23 falls within the Historic Trend Line -Fairly Valued range.
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 -11.21 , the current P/B ratio is approximately 473.96% 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 3.66%, the current FCF yield is approximately 7.08% lower. Relative to its 5-year average FCF yield of 2.52% , the current FCF yield is about 55.67% lower.
-64.34
P/B
Median3y
-11.21
Median5y
5.43
3.92
FCF Yield
Median3y
3.66
Median5y
2.52
Competitors Valuation Multiple
The average P/S ratio for DOCN's competitors is 7.13, providing a benchmark for relative valuation. DigitalOcean Holdings Inc Corp (DOCN) exhibits a P/S ratio of 4.40, which is -38.31% above the industry average. Given its robust revenue growth of 15.69%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DOCN increased by 30.21% 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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Frequently Asked Questions
Is DigitalOcean Holdings Inc (DOCN) currently overvalued or undervalued?
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 39.52 to 125.69 according to relative valuation methord.
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 39.52 to 125.69 according to relative valuation methord.
How does DOCN's valuation metrics compare to the industry average?
The average P/S ratio for DOCN's competitors is 7.13, providing a benchmark for relative valuation. DigitalOcean Holdings Inc Corp (DOCN) exhibits a P/S ratio of 4.40, which is -38.31% above the industry average. Given its robust revenue growth of 15.69%, this premium appears unsustainable.
What is the current P/B ratio for DigitalOcean Holdings Inc (DOCN) as of Jan 07 2026?
As of Jan 07 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 Jan 07 2026?
As of Jan 07 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 Jan 07 2026?
As of Jan 07 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 Jan 07 2026?
As of Jan 07 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.