DigitalOcean Holdings Inc (DOCN) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of DigitalOcean Holdings Inc stock $64.09, price $70.70, that is 9.3% below the price, quality 63 out of 100. Rating: overvalued. Calculated from audited financials with 21 of our 26 valuation models and 37 quality factors, updated daily.
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DigitalOcean Holdings Inc
DOCN · USOur calculation puts a fair price 9% below what the stock costs today.
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What runs behind every stock
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $19.82 – $181.29 · fair‑value band $33.90 – $91.87 · the $70.70 price screens above the $64.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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Company profile
DigitalOcean Holdings, Inc., through its subsidiaries, operates an agentic inference cloud platform in North America, Europe, Asia, and internationally. The company provides AI and Digital Native Enterprises build, run, and scale intelligent applications for growing technology companies.
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It also offers infrastructure-as-a-service (IaaS) solutions comprising compute, storage, and networking products, including cloud firewalls, managed load balancers, NAT gateways, and virtual private cloud software, as well as IP address management and domain name system management.
In addition, the company provides platform-as-a-service (PaaS) and software-as-a-service (SaaS) solutions, such as managed databases; managed Kubernetes and container registry; application platform to build, deploy, and scale applications; Functions, a serverless compute solution; and Uptime for real-time uptime and latency alerts, as well as managed hosting and DigitalOcean Marketplace, a platform where developers can find pre-configured applications and solutions.
Further, it offers artificial intelligence (AI)/machine learning (ML) applications comprising GPU droplets; bare metal GPUS, which provides access to a GPU server without any virtualization layer and gives developers with customizable server for their use case; and Jupyter Notebooks that provides cloud workspace and managed interactive development environment for exploring data and training, and building machine learning models.
Its customers use its platform in various industry verticals, such as online gaming, fintech, and cybersecurity, as well as for a range of use cases, including building and hosting websites, web and mobile applications development, AI integration, and building AI products and applications.
DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in Broomfield, Colorado.
Stock analysis
DigitalOcean Holdings Inc (DOCN) currently trades at $70.70, while our model-based Fair Value estimate is $64.09, 9% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $71.57 per share, and 3 of the 21 models we run sit above the $70.70 price.
Bear case: the Economic Profit group reads lowest at $10.22, and 18 of the 21 models stay below the price. Data coverage for this calculation is low.
Scenario range: $33.90 (bear) to $91.87 (bull), the price of $70.70 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 63/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
DigitalOcean Holdings Inc reported revenue of $901M in FY2025 versus $429M in FY2021, a compound +20.4%/yr. Reported net income was $259M in FY2025.
Key figures
Market cap $10.6B Large · P/E ratio 243.8 · P/S ratio 70.1 · EPS (TTM) $0.2900 · Net margin 28.8% · Return on equity 62.3% · Return on assets (EBIT) 2.6% · Operating margin 10.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 67 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 61% below its 52-week high and 64% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −8% fair-value upside, at −9%, DOCN screens richer than that median.
Fair Value models
All 21 models by family
The fair value above starts from this blend and is adjusted for dilution from new shares.
Quality Score breakdown
It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.
Insider trades
In the last 6 months, 6 officers or directors sold shares worth $14.7M and none bought.
- SalePadmanabhan T SrinivasanChief Executive Officer, Director3× since Aug 17, 2026: 22,788 shares, avg. $128.71$2.9MSep 21, 202610b5-1 plan
- SaleMatt SteinfortChief Financial Officer4× since Mar 3, 2026: 65,000 shares, avg. $118.13$7.7MSep 3, 2026
- SaleCherie BarrettSVP, Chief Accounting Officer3× since Mar 2, 2026: 30,441 shares, avg. $72.80$2.2MSep 3, 202610b5-1 plan
- SaleWarren J AdelmanDirector4,200 shares at $124.01$520,842Aug 7, 2026
- SaleWarren JensonDirector20,000 shares at $147.62$3.0MMay 19, 2026
- SaleHilary SchneiderDirector4,338 shares at $156.38$678,376May 15, 2026
- SaleLen BlavatnikAffiliate of 10% Owner3,300,000 shares at $150.30$496.0MMay 13, 2026
- SaleAccess Industries Holdings LLCAffiliate of 10% Owner391,806 shares at $155.13$60.8MMay 11, 2026
Plus 26 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Source: SEC Form 4, as of Nov 5, 2026. All filings at the SEC ↗
Revenue & earnings trend
Growth Forecast
DOCN screens overvalued: fair value 9% below the price. Compare with Microsoft Corporation →
Recent news
- DigitalOcean Holdings Inc (DOCN) (Q3 2026) Earnings Call Highlights: Record 40% Revenue Growth, ...
- DigitalOcean Holdings, Inc. (DOCN) Q3 Earnings and Revenues Top Estimates
- DigitalOcean (NYSE:DOCN) delivers strong Q3 2026 numbers, full-year outlook exceeds expectations
- DigitalOcean Announces Third Quarter 2026 Financial Results
Compare DigitalOcean Holdings Inc with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Infrastructure · 341 stocks
Valuation Multiplesvs Software - Infrastructure median · lower = cheaper
Strength profile in five axes (Snowflake)
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
Context: sector, industry, market
- Is the Information Technology sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Revenue growth by industry
- PEG ratio by industry
- Stock screener with 62 metrics
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value | Compare |
|---|---|---|---|---|
| Microsoft Corporation MSFT | $535.93 | $611.38 | +14% | vs DOCN |
| Fortinet, Inc FTNT | $122.51 | $138.83 | +13% | vs DOCN |
| Oracle Corporation ORCL | $115.16 | $111.97 | −3% | vs DOCN |
| NetApp, Inc NTAP | $169.38 | $156.80 | −7% | vs DOCN |
| Block, Inc XYZ | $84.04 | $76.95 | −8% | vs DOCN |
| Synopsys, Inc SNPS | $440.31 | $288.23 | −35% | vs DOCN |
| Zscaler, Inc ZS | $203.88 | $101.45 | −50% | vs DOCN |
| Palantir Technologies Inc PLTR | $154.99 | $42.30 | −73% | vs DOCN |
| CrowdStrike Holdings CRWD | $217.20 | $37.97 | −83% | vs DOCN |
| Palo Alto Networks, Inc PANW | $314.67 | $39.54 | −87% | vs DOCN |
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Key figures of DigitalOcean Holdings Inc
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