Latest Ratios: P/E Ratio 242.7x · EV/EBITDA 25.6x · 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 | $8.5B | $5.1B | $3.2B | $3.5B | $2.6B | $8.6B | — | — | — |
| Enterprise Value | $8.9B | $5.5B | $4.5B | $4.9B | $4.1B | $8.4B | — | — | — |
| P/E Ratio → | 242.65 | 19.10 | 38.28 | 183.45 | — | — | — | — | — |
| P/S Ratio | 7.68 | 5.62 | 4.12 | 5.11 | 4.46 | 20.10 | — | — | — |
| P/B Ratio | — | — | — | — | 53.97 | 14.89 | — | — | — |
| P/FCF | 96.51 | 123.37 | 33.47 | 32.12 | 34.26 | 358.61 | — | — | — |
| P/OCF | 27.37 | 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 | 25.57 | 18.83 | 20.30 | 37.57 | 53.08 | 108.33 | — | — | — |
| EV / EBIT | 57.01 | 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 | 0.4% | 5.2% | 2.6% | 0.5% | — | — | — | — | — |
| FCF Yield | 1.0% | 0.8% | 3.0% | 3.1% | 2.9% | 0.3% | — | — | — |
| Buyback Yield | 1.0% | 1.6% | 1.9% | 13.8% | 23.4% | 4.1% | — | — | — |
| Total Shareholder Yield | 1.0% | 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 242.7x. The historical average is 80.3x. This places it at the 100th percentile of its historical range.
DigitalOcean Holdings, Inc.'s current EV/EBITDA is 25.6x. 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 242.7x. This is at the 100th 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
Rising leverage with thinning coverage
Metrics are mathematically derived from official filings.
Premium Multiples Price in AI Durability
According to the reported figures, DOCN trades at a trailing P/E of 28.06 and a forward P/E of 48.57, with forward earnings implied to compress against a 29% year-over-year revenue reacceleration, which merits scrutiny before accepting the premium.
A forward multiple well above the trailing multiple suggests analysts are modeling near-term earnings compression, plausibly tied to depreciation from GPU infrastructure rather than weaker demand. Against peers such as Akamai at 25.36 earnings and EV/EBITDA near 12.9, DOCN's EV/EBITDA of 29.69 carries a clear growth premium, and the 201.16 price-to-free-cash-flow multiple shows how sensitive valuation is to lumpy capital spending. The premium is therefore a bet on AI customer durability rather than a discount on growth, and investors should monitor whether that cohort holds.
Net Margin Overstates Operating Earning Power
As reported in financial statements, DOCN's net margin of 28.76% sits well above its operating margin of 17.42%, a gap that suggests non-operating tax benefits or valuation allowance releases are inflating headline profitability.
Gross margin has compressed from roughly 61% in early 2025 to about 50% in the latest quarter, a decline coinciding with the mix shift toward GPU-intensive workloads that implies weaker unit economics on newly added revenue. The most recent operating margin of 10.3% is the more reliable gauge of earning power, and stock-based compensation absorbs a meaningful share of operating profit, so adjusted figures would likely be lower still. Analysts should normalize for tax items before comparing profitability to the historical base.
Debt Expansion Outpaces Equity Recovery
Based on DOCN's reported figures, the debt-to-equity ratio of 1.45 and debt-to-EBITDA swinging from 1.01 to 18.97 point to a rapid step-up in leverage, with interest coverage turning negative in the latest quarter.
Total debt rising from roughly $900M to $2.1B within two quarters suggests acquisitions and infrastructure build-outs are being financed with borrowed capital faster than retained earnings, which remain negative, can support. Interest coverage of -1.22 in 2026Q3 indicates operating earnings did not cover interest expense that quarter, a signal that debt service comfort has deteriorated despite the revenue rebound. Refinancing terms and covenant headroom are not disclosed in the supplied data and warrant further investigation.
Current Ratio Recovers Yet Remains Thin
Based on DOCN's reported figures, the current ratio recovered from 0.69 to 1.15 while cash reached $666.1M, leaving near-term liquidity adequate on paper but with little cushion against a sharp working capital reversal.
The recovery above parity is encouraging, yet a current ratio of 1.15 remains well below the 2.2 to 3.1 range seen through 2024 and 2025, indicating short-term obligations have grown faster than liquid assets. Quick ratio equals current ratio in the reported data, so liquidity rests on cash and receivables rather than inventory. Under stress, where collections slow or AI consumption falls, the thin cushion could tighten quickly.
Thin Cushion Tested by Concentration
As reported in management commentary, nine-figure annual commitments from top customers suggest revenue concentration could magnify the impact of any single churn event on a balance sheet already carrying elevated leverage.
The growth and cash inflection rest on a small AI-native cohort, so a delayed renewal or consumption reduction by one large account could reverse the reported reacceleration quickly. Combined with interest coverage that briefly turned negative and a current ratio still below its prior range, the margin for error is narrower than headline growth implies. The bullish case depends on these commitments converting into durable, diversified demand, which the supplied data cannot yet confirm.