DigitalOcean (DOCN)
What the price implies
A reverse DCF: instead of guessing a fair value, it asks what growth today's price already assumes. How it works.
At a market value of $13.3B, DigitalOcean's free cash flow of $170M (fiscal 2025) would need to grow about 23% a year for the stock to be worth today's price. That is slower than the company has grown its free cash flow over the last 4 years.
Assumes a 9% discount rate and 3% growth after year 10, on free cash flow (operating cash flow minus capital spending) from DigitalOcean's SEC filings. Change any assumption, or model revenue and margins instead, in the Modeling tab, or try your own numbers in the reverse DCF calculator.
Fundamental grade
Five factors scored 1 to 9 from DOCN's latest numbers, weighted into one grade. It describes the business, not whether the stock is a buy.
Key numbers
Results from SEC filings
Fiscal years, from DigitalOcean's 10-K filings. The deep dive has 15+ years, quarters and every line.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $429M | $576M | $693M | $781M | $901M |
| Net income | -$20M | -$28M | $19M | $84M | $259M |
| Free cash flow | $30M | $80M | $110M | $96M | $170M |
| EPS (diluted) | -$0.21 | -$0.28 | $0.20 | $0.89 | $2.52 |
| Operating margin | -2.6% | -4.5% | 1.7% | 11.7% | 17.4% |
Superinvestors who own DOCN
From each investor's latest 13F filing (what a 13F shows). 5 of the investors we track hold it.
| Investor | Last quarter | Value | % of portfolio | Quarter |
|---|---|---|---|---|
| Hersh Cohen ClearBridge Investments |
New position | $55M | 0.04% | Q2 2026 |
| Larry Robbins Glenview Capital Management |
Trimmed | $13M | 0.24% | Q2 2026 |
| Eric Marshall Hodges Capital Management |
Trimmed | $9M | 0.63% | Q2 2026 |
| Cliff Asness AQR Capital Management |
Added | $5M | 0.00% | Q2 2026 |
| Joel Greenblatt Gotham Asset Management |
Trimmed | $2M | 0.00% | Q2 2026 |
Insider buying
Open-market purchases by DigitalOcean's executives and directors in the last 12 months, from SEC Form 4 filings. What insider buying tells you.
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In the full deep dive
Questions
What growth does DigitalOcean's stock price imply?
At a market value of $13.3B, DigitalOcean would need its free cash flow to grow about 23% a year for 10 years (discounted at 9%, 3% growth after that) to be worth today's price. Over the last 4 years its free cash flow grew 55% a year.
Are DigitalOcean insiders buying the stock?
No open-market insider purchases of DOCN in the last 12 months, according to SEC Form 4 filings.
Which superinvestors own DigitalOcean?
5 of the superinvestors Investingly tracks hold DOCN in their latest 13F, including Hersh Cohen, Larry Robbins, Eric Marshall.
Prices and ratios as of Oct 7, 2026; statements from SEC filings. Information only, not investment advice. Superinvestor holdings come from 13F filings, which are filed up to 45 days after each quarter ends.