NYSE · DOCN

DigitalOcean Holdings, Inc.

Technology · Software - Infrastructure

$138.01▲ 6.05% ($7.87)today

As of 9:55 AM ET

52-week

$33.69$187.50

Market cap

$16.13B

What the market price implies · Reverse DCF

To support a price of $138.01, this model requires revenue to grow by 47.87%/yr over the next 10 years, compounded annually.

Historical revenue grew by 20.43%/yr over the past 4 years. The required annual growth rate is 27.44 percentage points higher.

Selected forecast · Base scenario

13.69%/yr · actual 10-year annualized revenue growth

Year 1 growth: 21.49%

Market-implied · Base operating assumptions + edited margins

47.87%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$138.01

Estimated value / share

$13.53

Base scenario

This estimate is 90.19% below the price used.

USD · TTM ending 2026-06-30

Year 1 growth 21.49% · Ending margin 14.8% · Discount rate 13.05%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 21, 2026, 1:55 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 21, 2026, 1:55 PM UTC · provider

Why this method?

There is not a stable run of positive FCFF to anchor a direct cash-flow CAGR, so the model should start from revenue and margin assumptions instead.

Is FCFF positive and has it been for 3+ consecutive years? Latest FCFF is not positive.

Price vs Fundamentals

Why The Stock Is Moving

Mixed / unclearLow confidence

1Y Price: 261.02%Revenue (TTM): 21.41%FCF (TTM): -84.52%P/E: 82nd pct

What changed

The stock rose 261.02% over the last year. Revenue grew 21.41% over the trailing twelve months. Operating margin moved from 15.66% to 14.8%. Free cash flow declined 84.52% over the trailing twelve months.

What the market seems to be pricing

The stock has moved higher against modestly weakening underlying metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.

What would invalidate this read

Operating margin currently stands at 14.8%. A decisive move in revenue — currently up 21.41% — would be the clearest signal to resolve the ambiguity.

Performance

Return analysis

Company profile

DigitalOcean Holdings, Inc., through its various operating entities, provides a global cloud computing environment with reach across North America, Europe, Asia, and beyond.

CEOPadmanabhan T. Srinivasan

SectorTechnology

IndustrySoftware - Infrastructure

Employees1,462

IPO dateMar 24, 2021

https://www.digitalocean.com

Market multiples

Forward P/E—

EV/EBITDA13.47

Enterprise value$4.88B

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth28.57%

Gross margin (FY2025)59.86%▲0.2ppvs FY2024

Operating margin (FY2025)17.42%▲5.8ppvs FY2024

ROEN/A

Analyst consensus

RatingBuy

Target price$172.73▲25.16%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 4, 2026

Q4 FY26 · EPS est $0.33 · Revenue est $306.66M

View