DigitalOcean (DOCN)

Technology · Software - Infrastructure
$131.01 -4.53% on the day Market cap $13.3B 52-week range $37.09 to $187.50 Prices as of Oct 7, 2026

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.

Free cash flow growth the price needs
23% a year for 10 years

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.

Implied by the price23.0% a year
Free cash flow, last 4 years54.7% a year
Revenue, same period23.4% a year
Price to free cash flow78.4x

Fundamental grade

D

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.

Valuation2
Profitability7
Growth4
Financial health2
Cash efficiency7

Key numbers

P/E (trailing)55.9x
P/E (forward)130.6x
Price / free cash flow78.4x
EV / EBITDA39.2x
Price / sales13.2x
Price / book15.9x
Revenue growth+28.6%
Operating margin14.8%
Net margin23.3%
Return on equity25.3%
Dividend yield—
Debt / equity2.36x

Results from SEC filings

Fiscal years, from DigitalOcean's 10-K filings. The deep dive has 15+ years, quarters and every line.

Fiscal year20212022202320242025
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.

InvestorLast quarterValue% of portfolioQuarter
Hersh Cohen
ClearBridge Investments
New position $55M0.04%Q2 2026
Larry Robbins
Glenview Capital Management
Trimmed $13M0.24%Q2 2026
Eric Marshall
Hodges Capital Management
Trimmed $9M0.63%Q2 2026
Cliff Asness
AQR Capital Management
Added $5M0.00%Q2 2026
Joel Greenblatt
Gotham Asset Management
Trimmed $2M0.00%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.

No open-market insider purchases of DOCN in the last 12 months. Most insider activity is selling and option exercises, which aren't shown here.

Get an alert at your buy price

Pick the price you'd be interested at. We'll email you when DOCN trades at or below it.

$

Free accounts get 3 price alerts. No card needed.

In the full deep dive

DCF fair value per share
Yearly return (IRR) at today's price
Growth implied by revenue and margins
15+ years of statements and quarters

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.