Latest Ratios: P/E Ratio 57.9x · EV/EBITDA 59.6x · ROE N/A. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $17.1B | $5.1B | $3.2B | $3.5B | $2.6B | $8.6B | — | — | — |
| Enterprise Value | $17.5B | $5.5B | $4.5B | $4.9B | $4.1B | $8.4B | — | — | — |
| P/E Ratio → | 57.94 | 19.10 | 38.28 | 183.45 | — | — | — | — | — |
| P/S Ratio | 18.94 | 5.62 | 4.12 | 5.11 | 4.46 | 20.10 | — | — | — |
| P/B Ratio | — | — | — | — | 53.97 | 14.89 | — | — | — |
| P/FCF | 415.40 | 123.37 | 33.47 | 32.12 | 34.26 | 358.61 | — | — | — |
| P/OCF | 55.13 | 16.37 | 11.39 | 15.06 | 13.16 | 64.70 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.15 | 5.75 | 7.04 | 7.05 | 19.51 | — | — | — |
| EV / EBITDA | 59.59 | 18.83 | 20.30 | 37.57 | 53.08 | 108.33 | — | — | — |
| EV / EBIT | 111.76 | 24.69 | 42.00 | 136.49 | — | — | — | — | — |
| EV / FCF | — | 134.96 | 46.64 | 44.27 | 54.21 | 348.17 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.9% | 59.9% | 59.7% | 59.0% | 63.2% | 60.2% | 54.3% | 52.0% | 52.2% |
| Operating Margin | 17.4% | 17.4% | 11.7% | 1.7% | -4.5% | -2.6% | -5.0% | -11.7% | -13.4% |
| Net Profit Margin | 28.8% | 28.8% | 10.8% | 2.8% | -4.8% | -4.6% | -13.7% | -15.9% | -17.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | -8.9% | -7.7% | — | -79.2% | — |
| ROA | 14.9% | 14.9% | 5.5% | 1.2% | -1.4% | -1.5% | -11.9% | -14.8% | -14.7% |
| ROIC | 15.6% | 15.6% | 6.5% | 0.7% | -2.1% | -4.0% | -8.0% | -17.4% | -41.7% |
| ROCE | 11.9% | 11.9% | 6.8% | 0.8% | -1.4% | -0.9% | -5.5% | -14.5% | -15.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | 34.38 | 2.53 | — | 3.75 | — |
| Debt / EBITDA | 2.48 | 2.48 | 7.67 | 12.76 | 21.37 | 18.95 | 4.34 | 5.76 | 5.41 |
| Net Debt / Equity | — | — | — | — | 31.42 | -0.43 | — | 3.10 | — |
| Net Debt / EBITDA | 1.62 | 1.62 | 5.73 | 10.31 | 19.53 | -3.25 | 2.67 | 4.77 | 4.22 |
| Debt / FCF | — | 11.59 | 13.17 | 12.15 | 19.95 | -10.44 | — | — | — |
| Interest Coverage | 12.52 | 12.52 | 11.72 | 3.99 | -1.84 | -3.86 | -2.13 | -3.23 | -4.51 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.69 | 0.69 | 2.45 | 2.61 | 5.72 | 30.39 | 1.75 | 0.84 | 0.80 |
| Quick Ratio | 0.69 | 0.69 | 2.45 | 2.61 | 5.72 | 30.39 | 1.75 | 0.84 | 0.80 |
| Cash Ratio | 0.41 | 0.41 | 1.94 | 2.14 | 5.22 | 29.42 | 1.18 | 0.45 | 0.47 |
| Asset Turnover | — | 0.49 | 0.48 | 0.47 | 0.32 | 0.20 | 0.74 | 0.84 | 0.83 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 36.81 | 42.60 | 32.76 | 34.09 | 33.74 | 32.21 | 29.72 | 29.48 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.7% | 5.2% | 2.6% | 0.5% | — | — | — | — | — |
| FCF Yield | 0.2% | 0.8% | 3.0% | 3.1% | 2.9% | 0.3% | — | — | — |
| Buyback Yield | 0.5% | 1.6% | 1.9% | 13.8% | 23.4% | 4.1% | — | — | — |
| Total Shareholder Yield | 0.5% | 1.6% | 1.9% | 13.8% | 23.4% | 4.1% | — | — | — |
| Shares Outstanding | — | $105M | $95M | $96M | $101M | $107M | $105M | $105M | $87M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying DOCN stock.
DigitalOcean Holdings, Inc.'s current P/E ratio is 57.9x. The historical average is 80.3x. This places it at the 67th percentile of its historical range.
DigitalOcean Holdings, Inc.'s current EV/EBITDA is 59.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 32.4x.
Based on historical data, DigitalOcean Holdings, Inc. is trading at a P/E of 57.9x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
DigitalOcean Holdings, Inc. has 59.9% gross margin and 17.4% operating margin. Operating margin between 10-20% is typical for established companies.
DigitalOcean Holdings, Inc.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
AI customer concentration
Metrics are mathematically derived from official filings.
AI Mix Pressures Gross Margin
Gross margin fell to 55.0% in 2026Q2 from 59.9% a year earlier, per the latest quarterly report, reflecting the higher cost structure of GPU-intensive AI workloads. Operating margin also contracted to 10.4% from 16.3%.
The margin compression is directly tied to the AI infrastructure buildout, as the cost of specialized hardware and associated depreciation runs higher than traditional compute. This suggests that the reported net margin of 12.6% is flattered by non-operating tax benefits, masking the underlying operational strain. Investors should monitor whether the AI-driven revenue growth can eventually offset these margin headwinds through improved utilization and pricing.
Capital Efficiency Decays with AI Capex
ROIC fell to 1.6% in 2026Q2 from 2.5% a year earlier, as reported in financial statements, despite a surge in invested capital. The asset-heavy pivot to AI infrastructure has yet to generate commensurate returns.
The sharp increase in PPE to $1.6B, up from $859.9M in 2025Q4, has expanded the capital base faster than operating income, diluting returns. This suggests that the company is in a period of heavy investment where returns are temporarily suppressed, but the success of the AI strategy hinges on whether these assets can be utilized at scale. The trend warrants close monitoring, as continued sub-2% ROIC would indicate capital misallocation.
Working Capital Drag Persists
The cash conversion cycle remains negative due to negative DPO, with DPO at 15 days in 2026Q2 versus 5 days in 2024Q1, per the latest data. This indicates the company is paying suppliers faster than it collects from customers, a persistent cash drain.
The negative CCC, driven by DPO being shorter than DSO, suggests that DigitalOcean is not leveraging supplier financing to fund its operations. This is unusual for an infrastructure provider and may reflect the need to secure hardware supply in a competitive market. The working capital drag, combined with heavy capex, explains the volatile free cash flow and underscores the importance of operational efficiency as the company scales.
Debt-Fueled AI Buildout Stretches Balance Sheet
Debt-to-equity jumped to 1.61 in 2026Q2 from 1.01 in 2026Q1, while D/EBITDA spiked to 43.31 from 10.96, per the latest balance sheet. Interest coverage fell to 4.64 from 3.32, indicating rising leverage and thinner coverage.
The near-doubling of total debt to $1.5B to fund AI infrastructure has significantly increased financial risk. The D/EBITDA of 43.31 is alarming, though it may be distorted by depressed EBITDA due to margin compression; still, it signals that debt service is becoming less comfortable. The interest coverage of 4.64, while above 1, is declining and could become a constraint if operating margins do not recover. This leverage increase appears deliberate to capture AI demand, but it leaves little room for error.
Liquidity Masked by Debt Overhang
The current ratio improved to 1.31 in 2026Q2 from 0.69 in 2025Q4, per the latest balance sheet, but cash of $767.0M is offset by $1.5B in total debt. This suggests apparent liquidity strength is misleading.
While the current ratio is above 1, the company's net debt position is substantial, and the quick ratio of 1.31 is entirely dependent on cash and receivables, with no inventory. Under stress, the company would need to refinance or draw on credit lines, which may be costly given the elevated leverage. The liquidity buffer is adequate for near-term obligations but does not provide a fortress-like cushion against a prolonged downturn or further AI capex needs.
Net Margin Misleads on AI Economics
The most misapplied ratio is net margin, which at 12.6% in 2026Q2 appears healthy but is inflated by tax benefits, as operating margin is only 10.4%. Investors should focus on operating margin and cash flow metrics to gauge true profitability.
Net margin is commonly used to compare profitability across software companies, but for DigitalOcean, it is distorted by non-recurring tax items and stock-based compensation. The operating margin of 10.4% better reflects the underlying economics of the AI-heavy business, and even that is under pressure. A more appropriate metric is EBITDA margin or unlevered free cash flow margin, which exclude financing and tax effects and better capture the cash-generating ability of the infrastructure assets.