DigitalOcean Holdings, Inc. (DOCN) P/E Ratio History
Historical price-to-earnings valuation from 2023 to 2025
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Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of February 28, 2026, DigitalOcean Holdings, Inc. (DOCN) trades at a price-to-earnings ratio of 22.2x, with a stock price of $56.06 and trailing twelve-month earnings per share of $2.46.
The current P/E is 86% below its 5-year average of 162.3x. Over the past five years, DOCN's P/E has ranged from a low of 13.9x to a high of 1168.5x, placing the current valuation at the 22th percentile of its historical range.
Compared to the Technology sector median P/E of 25.2x, DOCN is roughly in line with its sector peers. The sector includes 345 companies with P/E ratios ranging from 0.0x to 199.1x.
Relative to the broader market, DOCN trades roughly in line with the S&P 500 median P/E of 26.2x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our DOCN DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
Peer Comparison
P/E metrics vs. Cloud infrastructure and hosting peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
MSFTMicrosoft Corporation | $2.9T | 28.8 | 1.53Best | +16% |
ORCLOracle Corporation | $408B | 33.5 | 4.72 | +17% |
NTNXNutanix, Inc. | $10B | 58.9 | - | +227%Best |
DOCNDigitalOcean Holdings, Inc. | $5B | 22.2Lowest | - | +183% |
TUYATuya Inc. | $179M | 300.0 | - | +108% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
Historical P/E Data
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2025 Q4 | Wed Dec 31 2025 00:00:00 GM | $48.12 | $2.52 | 19.1x | -88% |
| FY2025 Q3 | $34.16 | $2.46 | 13.9x | -91% | |
| FY2025 Q2 | Mon Jun 30 2025 00:00:00 GM | $28.56 | $1.27 | 22.5x | -86% |
| FY2025 Q1 | Mon Mar 31 2025 00:00:00 GM | $33.39 | $1.08 | 30.9x | -81% |
| FY2024 Q4 | $34.07 | $0.86 | 39.6x | -76% | |
| FY2024 Q3 | Mon Sep 30 2024 00:00:00 GM | $40.39 | $0.84 | 48.1x | -70% |
| FY2024 Q2 | Sun Jun 30 2024 00:00:00 GM | $34.75 | $0.71 | 48.9x | -70% |
| FY2024 Q1 | Sun Mar 31 2024 00:00:00 GM | $38.18 | $0.55 | 69.2x | -57% |
| FY2023 Q4 | Sun Dec 31 2023 00:00:00 GM | $36.69 | $0.03 | 1168.5x | +620% |
Average P/E for displayed period: 162.3x
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Start ComparisonFrequently Asked Questions
Is DOCN stock overvalued or undervalued?
DOCN trades at 22.2x P/E, below its 5-year average of 162.3x. At the 22th percentile of historical range, the stock is priced at a discount to its own history.
How does DOCN's valuation compare to peers?
DigitalOcean Holdings, Inc. P/E of 22.2x compares to sector median of 25.2x. The discount suggests lower growth expectations or higher risk.
What is DOCN's PEG ratio?
DOCN PEG ratio is N/A. Above 2.0 indicates premium valuation relative to growth rate. Historical P/E data spans 2023-2025.