DigitalOcean Holdings Inc (DOCN) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
DigitalOcean Holdings Inc stock (DOCN) is currently trading at $87.00. DigitalOcean Holdings Inc PE ratio is 33.70. DigitalOcean Holdings Inc PS ratio (Price-to-Sales) is 8.67. Analyst consensus price target for DOCN is $76.25. WallStSmart rates DOCN as Hold.
- DOCN PE ratio analysis and historical PE chart
- DOCN PS ratio (Price-to-Sales) history and trend
- DOCN intrinsic value — DCF, Graham Number, EPV models
- DOCN stock price prediction 2025 2026 2027 2028 2029 2030
- DOCN fair value vs current price
- DOCN insider transactions and insider buying
- Is DOCN undervalued or overvalued?
- DigitalOcean Holdings Inc financial analysis — revenue, earnings, cash flow
- DOCN Piotroski F-Score and Altman Z-Score
- DOCN analyst price target and Smart Rating
DigitalOcean Holdings Inc
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DOCN Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · DigitalOcean Holdings Inc (DOCN)
DOCN trades at a significant discount to its Graham intrinsic value of $117.94, offering a 47% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
DigitalOcean Holdings Inc (DOCN) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in eps growth, profit margin, institutional own.. Concerns around return on equity and price/sales. Fundamentals are solid but monitor weak areas for improvement.
DigitalOcean Holdings Inc (DOCN) Key Strengths (4)
Earnings per share surging 90.10% year-over-year
Keeps $29 of every $100 in revenue as net profit
77.73% of shares held by major funds and institutions
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
DigitalOcean Holdings Inc (DOCN) Areas to Watch (6)
Company is destroying shareholder value
Very expensive at 8.7x annual revenue
Very expensive at 67.9x book value
Growth is fairly priced, not cheap, not expensive
Decent operational efficiency, solid but not exceptional
Solid revenue growth at 18.30% per year
Supporting Valuation Data
DigitalOcean Holdings Inc (DOCN) Detailed Analysis Report
Overall Assessment
This company scores 56/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.3/10) while 6 fall into concern territory (avg 3.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on EPS Growth, Profit Margin, Institutional Own.. Profitability is solid with Profit Margin at 28.80%. Growth metrics are encouraging with EPS Growth at 90.10%.
The Bear Case
The primary concerns are Return on Equity, Price/Sales, Price/Book. Some valuation metrics including PEG Ratio (1.54), Price/Sales (8.67), Price/Book (67.92) suggest expensive pricing. Growth concerns include Revenue Growth at 18.30%, which may limit upside. Profitability pressure is visible in Return on Equity at -38.70%, Operating Margin at 16.00%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -38.70% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 18.30% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (EPS Growth, Profit Margin) and negatives (Return on Equity, Price/Sales). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
DOCN Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
DOCN's Price-to-Sales ratio of 8.67x sits near its historical average of 7.78x (74th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 70% below its historical high of 28.8x set in Nov 2021, and 166% above its historical low of 3.26x in Oct 2023. Over the past 12 months, the PS ratio has expanded from ~4.0x, reflecting growing market expectations outpacing revenue growth.
Compare DOCN with Competitors
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Data-driven financial summary for DigitalOcean Holdings Inc (DOCN) · TECHNOLOGY › SOFTWARE - INFRASTRUCTURE
The Big Picture
DigitalOcean Holdings Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 901M with 18% growth year-over-year. Profit margins are strong at 28.8%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 28.8% and operating margin of 16.0% demonstrate strong pricing power and operational efficiency.
Debt-to-equity ratio of -22.89 indicates a conservative balance sheet with 237M in cash.
Free cash flow is -108M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Volatility is elevated with a beta of 1.76, so expect amplified moves relative to the broader market.
Debt management: total debt of 1.6B is significantly higher than cash (237M). Monitor refinancing risk.
Sector dynamics: monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive moves, and regulatory changes that could impact DigitalOcean Holdings Inc.
Bottom Line
DigitalOcean Holdings Inc offers an attractive blend of growth (18% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About DigitalOcean Holdings Inc(DOCN)
NYSE
TECHNOLOGY
SOFTWARE - INFRASTRUCTURE
USA
DigitalOcean Holdings, Inc. operates a cloud computing platform that provides platform infrastructure and tools for developers, startups, and small and medium-sized businesses in North America, Europe, Asia, and internationally. The company is headquartered in New York, New York.