DigitalOcean Holdings Inc (DOCN) fair value: what the stock is really worth
We calculate from audited financials what DigitalOcean Holdings Inc is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
- Fair value above price? No
- Good quality? Yes
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DigitalOcean Holdings Inc
DOCN · USStretched ValuationQuality growthStrong overvaluation with only moderate quality.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 18, 2026.
How to read this chart
60‑month range $19.82 – $181.29 · fair‑value band $33.07 – $88.26 · the $130.14 price screens above the $64.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 18, 2026.
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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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. 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 $130.14, while our model-based Fair Value estimate is $64.09, implying the stock looks roughly 103.0% overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $71.57 per share, and 0 of the 23 models we run sit above the $130.14 price.
Bear case: the Economic Profit group reads lowest at $15.50, and 23 of the 23 models stay below the price. Evidence for this calculation is medium.
Scenario range: $33.07 (bear) to $88.26 (bull), the price of $130.14 sits above 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 68/100 (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 $13.7B · P/E ratio 57.1 · P/S ratio 16.4 · EPS (TTM) $2.28 · Dividend yield 0.2% · Net margin 28.8% · Return on equity 70.0% · Return on assets (EBIT) 2.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 47 out of 100 (low confidence).
What moves the price
Analysts expect earnings well below the last reported figure (earnings in transition, for example expiring patents or contracts); a fair value that looks fair on trailing earnings may then be too optimistic.
The share trades about 29% below its 52-week high, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −16% fair-value upside, at −51%, DOCN screens richer than that median.
Fair Value models
All 23 models by family
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Set up alert →Quality Score breakdown
Of which business quality 67 · Market factors (momentum, volatility) 56
Revenue & earnings trend
Growth Forecast
DOCN screens 103% overvalued. Compare with Microsoft Corporation →
Recent news
- DigitalOcean (DOCN) Stock Is Up, What You Need To Know
- Stocks making big moves this week: Solaris Energy Infrastructure, Revolve, AeroVironment, DigitalOcean, and SoFi
- DigitalOcean Secures $725 Million in Equipment Financing Facility to Fund Capacity Expansion
- Why Is DigitalOcean (DOCN) Stock Soaring Today
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 · 377 stocks
Valuation Multiplesvs Software - Infrastructure median · lower = cheaper
Strength profile in five axes (Snowflake)
VALUE 0: the price sits above our fair-value range.
Context: sector, industry, market
- Is the Information Technology sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- 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 |
|---|---|---|---|
| Microsoft Corporation MSFT | $493.48 | $542.83 | +10% |
| Oracle Corporation ORCL | $140.35 | $117.84 | −16% |
| Palantir Technologies Inc PLTR | $172.56 | $42.96 | −75% |
| Palo Alto Networks, Inc PANW | $375.09 | $114.50 | −69% |
| CrowdStrike Holdings CRWD | $242.49 | $34.64 | −86% |
| Fortinet, Inc FTNT | $172.37 | $164.92 | −4% |
| Synopsys, Inc SNPS | $378.47 | $177.06 | −53% |
| Block, Inc XYZ | A$109.44 | A$141.48 | +29% |
| CoreWeave, Inc CRWV | $83.35 | $71.79 | −14% |
| Twilio Inc TWLO | $238.88 | $59.44 | −75% |
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Key figures of DigitalOcean Holdings Inc
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