coteauBeta Get App
DOCN

DOCN

DigitalOcean Holdings, Inc.
$101.48
+2.01% Oct 21 close
Information TechnologyS&P 400 Compare
1M3M6M1Y2Y
-8%+80%+167%+254%+341%Oct 2025Oct 2026Apr 2026
DOCNSPY
1W
-7.1%
1M
-30.6%
3M
-28.9%
6M
+6.2%
YTD
+110.9%
1Y
+155.4%

Live chart

Loading live chart…

What they do

DigitalOcean Holdings, Inc. 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.

Technology · Software - Infrastructure

For information only · Important disclosures

Grades vs sector

Momentum
97th percentile in sector
A+
12-1 return: +228.1%
Percentile within its GICS sector across the S&P 1500.
Growth
73rd percentile in sector
B+
Revenue growth (YoY): +28.6%
Percentile within its GICS sector across the S&P 1500.
Value
12th percentile in sector
D-
Forward E/P: 1.9% · EBITDA/EV: 2.4%
Percentile within its GICS sector across the S&P 1500.
Profitability
85th percentile in sector
A-
Profit margin: +23.3% · Return on equity: +62.3%
Percentile within its GICS sector across the S&P 1500.
Revisions
Not enough data yet
–
EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Our models

Not held by any of our 5 live models right now.

Quality Growth
Outside this model's universe or screens
 Momentum Top 15
Outside this model's universe or screens
 Momentum Blend
Not in the current book
 New Highs Growth
Outside this model's universe or screens
 Coteau Long Book
Not in the current book

News

More news
Piper Sandler calls DigitalOcean pullback overdone, upgrades to Overweight
Investing.com · 17h ago
Why is DigitalOcean stock rallying today?
Investing.com · 20h ago
DigitalOcean Announces Date of Third Quarter 2026 Earnings Conference Call
Business Wire · Oct 20
AI makes website performance a boardroom priority as digital businesses lose an estimated £336,000 a year to downtime
Business Wire · Oct 20
Qualys, DigitalOcean, Twilio, CrowdStrike, and MongoDB Shares Are Falling, What You Need To Know
StockStory · Oct 16

Key stats

Market value$11.9B
P/E (last 12 months)46.8
P/E (next 12 months, estimated)54.9
52-week range$37.84 – $187.50
Revenue growth (latest quarter vs a year ago)+28.6%
Dividend yieldNo dividend
Analyst consensusBuy (15)
Average analyst price target$176.20 (+74%)
Valuation and fundamentals

Valuation & fundamentals

Bottom line
Leans expensive
Model read-out from the numbers below, not advice. Score -1 (DCF counts double).
▼DCF (base case)below the price by 57%
▼Forward P/E vs sector54.9x vs median 16.9x
▲Piotroski F-score7/9
▲Altman Z3.8 (safe)
▲Net debt / EBITDA0.5x
▲Analyst target+74% (15 analysts)

Discounted cash flow

Bear
$24
-76%
growth 13% · disc. 13.8% · term. 2.0%
Base
$44
-57%
growth 22% · disc. 12.8% · term. 2.5%
Bull
$70
-31%
growth 28% · disc. 11.8% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal
Today's price assumes free cash flow grows about 29% a year for 10 years.
Implied
+29%/yr
FCF, last 3 yrs
+27%/yr
FCF, last 5 yrs
n/a
Revenue, last 3 yrs
+16%/yr
Revenue, last 5 yrs
+23%/yr
Same inputs as the DCF above: trailing free cash flow 0.2B, 12.8% discount rate, 2.5% growth after year 10, net debt and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2025; "n/a" means too little history or a negative starting year.
Edit assumptions · recalculates instantly
Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-06-30). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 1.70 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Information Technology

P/E (trailing)
sector median 35.9× · 69th pct
 46.8×
pricier
Forward P/E
sector median 16.9× · 96th pct
 54.9×
pricier
EV / EBITDA
sector median 20.8× · 77th pct
 37.6×
pricier
Price / sales
sector median 4.6× · 83rd pct
 11.8×
pricier
Price / book
sector median 5.1× · 80th pct
 12.8×
pricier
FCF yield
sector median 3.5% · 24th pct
 1.6%
pricier

Forward EPS $1.85 vs trailing $2.17 (-15% expected growth). Forward P/E uses analysts' next-12-month estimate.

Quality & financial health

Gross margin
57.2%
Operating margin
14.8%
FCF margin
19.2%
Net margin
23.3%
Return on equity
25.3%
Return on invested capital
13.8%
Net debt / EBITDA
0.5×
Current ratio
1.3×
Interest cover
4.8×
Cash conversion (OCF/NI)
1.3×
Piotroski F-score 7/9 · last two fiscal years
✓ Positive net income✓ Positive operating cash flow✓ Return on assets improved✓ Cash flow above net income✓ Long-term debt / assets fell✗ Current ratio improved✗ No share dilution✓ Gross margin improved✓ Asset turnover improved

Altman Z-score 3.8 (safe zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target
$176
+74%
Analysts
15
Buy
Range
$125–$220
low – high
● price · ◆ mean target

Annual history

FYRevenueNet incomeFree cash flow
2025$901.4M$259.3M$180.5M
2024$780.6M$84.5M$104.6M
2023$692.9M$19.4M$115.6M
2022$576.3M$-27.8M$88.8M
2021$428.6M$-19.5M$36.0M
2020$318.4M$-43.6M$-39.9M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +16.1%.

Earnings

Next report: 2026-11-03 · before open · EPS est 0.32
24-1125-0225-0525-0825-1126-0226-0526-080.000.59
EstimateActual (beat)Actual (miss)
ReportEPS estActualSurprise
2026-08-040.260.45+72.9%
2026-05-050.260.44+67.7%
2026-02-240.380.44+15.5%
2025-11-050.490.54+9.5%
2025-08-050.470.59+26.2%
2025-05-060.440.56+26.4%
2025-02-250.340.49+43.7%
2024-11-040.400.52+28.7%

Quarterly revenue

QuarterRevenueYoY
2026-06-30$281.2M+28.6%
2026-03-31$257.9M–
2025-12-31$242.4M–
2025-09-30$229.6M–
2025-06-30$218.7M–
Analyst actions
Piper Sandler
2026-10-21 · up
Neutral → Overweight
PT $126
Oppenheimer
2026-10-14 · main
Outperform → Outperform
PT $220
Truist Securities
2026-08-27 · init
 → Buy
PT $175
UBS
2026-08-05 · main
Neutral → Neutral
PT $140
Citigroup
2026-08-05 · main
Buy → Buy
PT $190
Barclays
2026-08-05 · main
Overweight → Overweight
PT $161
Insider trades
Srinivasan Padmanabhan T
Director, Chief Executive Officer · 2026-09-21
Sell
$1.6M
Srinivasan Padmanabhan T
Director, Chief Executive Officer · 2026-09-03
Sell
$602.3K
Steinfort Matt
Chief Financial Officer · 2026-09-03
Sell
$1.1M
Barrett Cherie
SVP, Chief Accounting Officer · 2026-09-03
Sell
$421.3K
Srinivasan Padmanabhan T
Director, Chief Executive Officer · 2026-08-17
Sell
$735.5K
Barrett Cherie
SVP, Chief Accounting Officer · 2026-08-13
Sell
$589.8K
Adelman Warren J
Director · 2026-08-07
Sell
$520.9K
None
None · None
Sell
–
None
None · None
Sell
–
None
None · None
Sell
–
None
None · None
Sell
–
None
None · None
Sell
–

Stats refreshed 2026-10-21 18:06:36 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

Free. Not investment advice. Unsubscribe anytime.

coteau

Independent research · Not investment advice · Important disclosures · Contact desk@coteau.app

Coteau Systematic Strategies publishes stock research and model portfolios. Results are hypothetical unless marked Live. Data: Yahoo Finance (15-min delayed), SEC EDGAR and the House Clerk.

How it worksDisclaimerTermsPrivacyData statusSend feedback
Beta 0.9 · Oct 21, 2026