DigitalOcean Holdings, Inc.

NYSE:DOCN Stock Report

Market Cap: US$4.4b

DigitalOcean Holdings Valuation

Is DOCN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DOCN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DOCN ($48.12) is trading below our estimate of fair value ($55.01)

Significantly Below Fair Value: DOCN is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DOCN?

Key metric: As DOCN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DOCN. This is calculated by dividing DOCN's market cap by their current earnings.
What is DOCN's PE Ratio?
PE Ratio17.5x
EarningsUS$251.87m
Market CapUS$4.40b

Price to Earnings Ratio vs Peers

How does DOCN's PE Ratio compare to its peers?

The above table shows the PE ratio for DOCN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average46.6x
WIX Wix.com
40.9x24.79%US$5.7b
GDS GDS Holdings
42x-12.18%US$7.0b
AKAM Akamai Technologies
24.8x15.78%US$12.6b
OKTA Okta
78.6x18.96%US$15.3b
DOCN DigitalOcean Holdings
17.5x-27.00%US$4.4b

Price-To-Earnings vs Peers: DOCN is good value based on its Price-To-Earnings Ratio (17.5x) compared to the peer average (46.6x).

Price to Earnings Ratio vs Industry

How does DOCN's PE Ratio compare vs other companies in the US IT Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MASK 3 E Network Technology Group
3.7xn/aUS$5.44m
GTCH GBT Technologies
0.3xn/aUS$1.85m
GMTH GMTech
2.7xn/aUS$1.19m
MCOM Micromobility.com
0.4xn/aUS$986.70k
DOCN 17.5xIndustry Avg. 29.9xNo. of Companies6PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DOCN is good value based on its Price-To-Earnings Ratio (17.5x) compared to the US IT industry average (29.9x).

Price to Earnings Ratio vs Fair Ratio

What is DOCN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DOCN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.5x
Fair PE Ratio17.3x

Price-To-Earnings vs Fair Ratio: DOCN is expensive based on its Price-To-Earnings Ratio (17.5x) compared to the estimated Fair Price-To-Earnings Ratio (17.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DOCN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$48.12
US$53.75
+11.70%
11.32%US$65.00US$47.00n/a12
Dec ’26US$44.37
US$53.33
+20.20%
10.19%US$60.00US$47.00n/a12
Nov ’26US$40.66
US$42.00
+3.30%
17.41%US$55.00US$32.00n/a11
Oct ’26US$35.87
US$41.60
+15.97%
16.35%US$55.00US$32.00n/a10
Sep ’26US$32.62
US$41.60
+27.53%
16.35%US$55.00US$32.00n/a10
Aug ’26US$25.74
US$38.82
+50.81%
17.01%US$55.00US$31.00n/a11
Jul ’26US$28.02
US$38.50
+37.40%
16.65%US$55.00US$31.00n/a12
Jun ’26US$28.30
US$38.00
+34.28%
16.83%US$55.00US$31.00n/a13
May ’26US$31.48
US$41.85
+32.93%
16.53%US$55.00US$31.00n/a13
Apr ’26US$33.79
US$45.46
+34.54%
12.93%US$55.00US$31.00n/a13
Mar ’26US$42.85
US$45.46
+6.09%
12.93%US$55.00US$31.00n/a13
Feb ’26US$41.48
US$41.92
+1.07%
15.70%US$55.00US$28.00n/a13
Jan ’26US$34.07
US$40.73
+19.54%
14.55%US$48.00US$28.00US$48.1211
Dec ’25US$38.08
US$40.73
+6.95%
14.55%US$48.00US$28.00US$44.3711
Nov ’25US$40.83
US$40.09
-1.81%
17.52%US$48.00US$25.00US$40.6611
Oct ’25US$38.63
US$37.64
-2.57%
16.47%US$47.00US$25.00US$35.8711
Sep ’25US$37.43
US$37.64
+0.55%
16.47%US$47.00US$25.00US$32.6211
Aug ’25US$30.85
US$38.82
+25.83%
16.47%US$47.00US$25.00US$25.7411
Jul ’25US$34.67
US$39.18
+13.01%
15.88%US$47.00US$25.00US$28.0211
Jun ’25US$37.05
US$39.18
+5.75%
15.88%US$47.00US$25.00US$28.3011
May ’25US$35.53
US$38.87
+9.41%
15.59%US$47.00US$25.00US$31.4811
Apr ’25US$38.17
US$38.87
+1.84%
15.59%US$47.00US$25.00US$33.7911
Mar ’25US$38.40
US$38.80
+1.04%
16.37%US$47.00US$25.00US$42.8510
Feb ’25US$34.64
US$35.20
+1.62%
20.71%US$47.00US$25.00US$41.4810
Jan ’25US$36.69
US$32.80
-10.60%
21.38%US$47.00US$25.00US$34.0710
US$53.75
Fair Value
8.9% undervalued intrinsic discount
12
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/02 17:05
End of Day Share Price 2025/12/31 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

DigitalOcean Holdings, Inc. is covered by 18 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Raimo LenschowBarclays
Wamsi MohanBofA Global Research
William Kingsley CraneCanaccord Genuity