DigitalOcean Holdings Valuation
| DOCN Stock | USD 55.40 2.84 4.88% |
At this time, the firm appears to be undervalued. DigitalOcean Holdings shows a prevailing Real Value of $65.69 per share. The current price of the firm is $55.4. Our model computes the value of DigitalOcean Holdings from reviewing the firm fundamentals such as Shares Outstanding of 91.49 M, profit margin of 0.29 %, and Current Valuation of 6.69 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting DigitalOcean Holdings' valuation include:
Price Book 67.9206 | Enterprise Value | Enterprise Value Ebitda 19.0142 | Price Sales 5.9112 | Forward PE 57.8035 |
Undervalued
Today
Please note that DigitalOcean Holdings' price fluctuation is very steady at this time. Calculation of the real value of DigitalOcean Holdings is based on 3 months time horizon. Increasing DigitalOcean Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since DigitalOcean Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of DigitalOcean Stock. However, DigitalOcean Holdings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 55.4 | Real 65.69 | Target 75.5 | Hype 55.38 | Naive 49.2 |
The intrinsic value of DigitalOcean Holdings' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence DigitalOcean Holdings' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of DigitalOcean Holdings helps investors to forecast how DigitalOcean stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of DigitalOcean Holdings more accurately as focusing exclusively on DigitalOcean Holdings' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use DigitalOcean Holdings' intrinsic value based on its ongoing forecasts of DigitalOcean Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against DigitalOcean Holdings' closest peers.
DigitalOcean Holdings Cash |
|
DigitalOcean Holdings Total Value Analysis
DigitalOcean Holdings is currently forecasted to have valuation of 6.69 B with market capitalization of 5.33 B, debt of 730.55 M, and cash on hands of 1.17 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the DigitalOcean Holdings fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
6.69 B | 5.33 B | 730.55 M | 1.17 B |
DigitalOcean Holdings Investor Information
About 25.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.87. DigitalOcean Holdings had not issued any dividends in recent years. Based on the key indicators related to DigitalOcean Holdings' liquidity, profitability, solvency, and operating efficiency, DigitalOcean Holdings is doing better financially today then in previous quarter. It has a moderate chance of reporting better financial numbers in April.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Total Cash From Operating Activities | 177.6 M | 309.6 M |
|
|
DigitalOcean Holdings Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. DigitalOcean Holdings has an asset utilization ratio of 49.05 percent. This suggests that the Company is making $0.49 for each dollar of assets. An increasing asset utilization means that DigitalOcean Holdings is more efficient with each dollar of assets it utilizes for everyday operations.DigitalOcean Holdings Profitability Analysis
Based on DigitalOcean Holdings' profitability indicators, DigitalOcean Holdings is yielding more profit at the present time then in previous quarter. It has a moderate chance of reporting better profitability numbers in April. Profitability indicators assess DigitalOcean Holdings' ability to earn profits and add value for shareholders.Net Income | First Reported 2017-12-31 | Previous Quarter 158.4 M | Current Value 25.7 M | Quarterly Volatility 32.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.46 | 0.5986 |
|
|
For DigitalOcean Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DigitalOcean Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DigitalOcean Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DigitalOcean Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DigitalOcean Holdings over time as well as its relative position and ranking within its peers.
DigitalOcean Holdings Earnings per Share Projection vs Actual
The next projected EPS of DigitalOcean Holdings is estimated to be 0.2293 with future projections ranging from a low of 0.17 to a high of 0.37. DigitalOcean Holdings' most recent 12-month trailing earnings per share (EPS TTM) is at 2.5. Please be aware that the consensus of earnings estimates for DigitalOcean Holdings is based on EPS before non-recurring items and includes expenses related to employee stock options.DigitalOcean Holdings Earnings Estimation Breakdown
The calculation of DigitalOcean Holdings' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of DigitalOcean Holdings is estimated to be 0.2293 with the future projection ranging from a low of 0.17 to a high of 0.37. Please be aware that this consensus of annual earnings estimates for DigitalOcean Holdings is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.17 Lowest | Expected EPS | 0.37 Highest |
DigitalOcean Holdings Earnings Projection Consensus
Suppose the current estimates of DigitalOcean Holdings' value are higher than the current market price of the DigitalOcean Holdings stock. In this case, investors may conclude that DigitalOcean Holdings is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and DigitalOcean Holdings' stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 30th of June 2026 | Current EPS (TTM) | |
| 14 | 50.0% | 0.0 | 0.2293 | 2.5 |
DigitalOcean Holdings Ownership Allocation
DigitalOcean Holdings holds a total of 91.49 Million outstanding shares. The majority of DigitalOcean Holdings outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in DigitalOcean Holdings to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in DigitalOcean Holdings. Please pay attention to any change in the institutional holdings of DigitalOcean Holdings as this could imply that something significant has changed or is about to change at the company. Also note that almost two million seven hundred twenty-six thousand four hundred sixty-six invesors are currently shorting DigitalOcean Holdings expressing very little confidence in its future performance.DigitalOcean Holdings Profitability Analysis
The company reported the previous year's revenue of 901.43 M. Net Income was 259.26 M with profit before overhead, payroll, taxes, and interest of 539.59 M.About DigitalOcean Holdings Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of DigitalOcean Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of DigitalOcean Holdings based exclusively on its fundamental and basic technical indicators. By analyzing DigitalOcean Holdings's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of DigitalOcean Holdings's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of DigitalOcean Holdings. We calculate exposure to DigitalOcean Holdings's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of DigitalOcean Holdings's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 539.6 M | 336.6 M | |
| Pretax Profit Margin | 0.23 | 0.24 | |
| Operating Profit Margin | 0.17 | 0.18 | |
| Net Profit Margin | 0.29 | 0.30 | |
| Gross Profit Margin | 0.60 | 0.46 |
DigitalOcean Holdings Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 105.3 M | |
| Quarterly Earnings Growth Y O Y | 0.901 | |
| Forward Price Earnings | 57.8035 |
DigitalOcean Holdings Current Valuation Indicators
DigitalOcean Holdings' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final DigitalOcean Holdings' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as DigitalOcean Holdings, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use DigitalOcean Holdings' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes DigitalOcean Holdings' worth.When determining whether DigitalOcean Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of DigitalOcean Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Digitalocean Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Digitalocean Holdings Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DigitalOcean Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Will Internet Services & Infrastructure sector continue expanding? Could DigitalOcean diversify its offerings? Factors like these will boost the valuation of DigitalOcean Holdings. Projected growth potential of DigitalOcean fundamentally drives upward valuation adjustments. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every DigitalOcean Holdings data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.901 | Earnings Share 2.5 | Revenue Per Share | Quarterly Revenue Growth 0.183 | Return On Assets |
Understanding DigitalOcean Holdings requires distinguishing between market price and book value, where the latter reflects DigitalOcean's accounting equity. The concept of intrinsic value - what DigitalOcean Holdings' is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push DigitalOcean Holdings' price substantially above or below its fundamental value.
It's important to distinguish between DigitalOcean Holdings' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding DigitalOcean Holdings should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, DigitalOcean Holdings' trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.