DigitalOcean Holdings, Inc. (DOCN) Stock Analysis
Last updated Oct 27, 2026
Health Check
Last analyzed Oct 23, 2026
- Financial Health 65
- Profitability 65
- Business Quality 75
- Balance Sheet 40
- Cash Flow 45
Why this rating?
Health 61/100 — Good Quality
Worth tracking, but timing is mixed — not a clear setup yet.
Company overview
DigitalOcean Holdings, Inc. (DOCN) is a Software - Infrastructure company in the Technology sector. Compound Radar rates DigitalOcean Holdings, Inc. 61/100 (Good Quality) due to high business quality, strong revenue growth, and elevated leverage.
Investment profile
- Quality High
- Growth Strong
- Balance Sheet Stretched
- Valuation Elevated
Financial highlights
Valuation
- P/E 49.03
- Forward P/E 58.12
- PEG 1.54
- EV/Revenue 12.77
Profitability
- Revenue Growth 28.6%
- Gross Margin 57.2%
- Operating Margin 10.4%
- Net Margin 23.3%
- ROE 62.3%
Financial strength
- Cash $767.03M
- Debt $1.98B
- Net Cash $-1.21B
- Free Cash Flow $41.09M
- Current Ratio 1.31
Similar companies
Peers in Software - Infrastructure, ranked by Financial Health.
Latest quoted price for the name. Helps anchor the setup in today’s market level.
Health Entry- Palantir Technologies Inc. Software - Infrastructure PLTR$198.73 91 Health 91 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Fortinet, Inc. Software - Infrastructure FTNT$185.00 86 Health 86 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Microsoft Corporation Software - Infrastructure MSFT$531.33 84 Health 84 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Zeta Global Holdings Corp. Software - Infrastructure ZETA$33.35 83 Health 83 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Remitly Global, Inc. Software - Infrastructure RELY$24.21 81 Health 81 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- NetApp, Inc. Software - Infrastructure NTAP$227.58 80 Health 80 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Nutanix, Inc. Software - Infrastructure NTNX$72.74 78 Health 78 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Qualys, Inc. Software - Infrastructure QLYS$227.90 78 Health 78 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
FAQ
How Compound Radar scores and tracks DigitalOcean Holdings, Inc. (DOCN).