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DigitalOcean Holdings, Inc. (DOCN) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

DigitalOcean Holdings, Inc.

DOCNMarket cap $15BPrice $131.1

Country🇺🇸United States

SectorTechnology

IndustryIT Services

Provides cloud computing infrastructure built specifically for developers and startups, not enterprise giants. DigitalOcean makes AWS-level power simple and affordable, powering over 600,000 businesses without the complexity or price tag of the big three cloud providers.

In Bastion Portfolios?

52W Return+217%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+16%8

Revenue Forecast

Rev CAGR (1y)+31%9

Rev CAGR (3y)+41%10

Rev CAGR (5y)+55%10

Earnings Forecast

EPS Growth Y+1-48%2

EPS Growth Y+2+47%9

EPS Growth Y+3+65%10

Quality

Margins

EBIT Margin15%6

Net Income Margin23%8

Free Cash Flow Margin2%3

Debt

Net Debt/EBITDA2.73

Efficiency

ROE51%10

ROA10%8

Earnings Stability66

GEAR+AVERAGE56

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)881

P/E Ratio (Forward 3y)371

P/BV16.61

EV Multiples

EV/EBITDA Fwd361

EV/EBIT Fwd681

Yield

Free Cash Flow Yield0.1%3

Dividend Yieldna–

Momentum

Short term

1 month return+16%10

3 month return-4%5

YTD return+172%10

Mid term

Price vs 52wHigh70%3

1 year return+242%10

Long term

3 year return+470%10

5 year return+54%6

Risk Shield

Price Risk

Beta1.52

Volatility82%1

Free Cash Flow

Free Cash Flow Margin2%3

Free Cash Flow Yield0.1%3

Quality

ROCE8%5

Earnings Stability66

Net Debt/EBITDA2.73

02Growth

Is it actually growing, and how fast?

DOCNDigitalOcean Holdings

Revenue FY25$901M

GROWTH RATING↗

VERY STRONG95 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+16%8

Revenue, next 1Y+31%9

Revenue, next 3Y, CAGR+41%10

Revenue, next 5Y, CAGR+55%10

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-48%2

EPS growth, FY27E+47%9

EPS growth, FY28E+65%10

GROWTH ASSESSMENT

STRENGTHS

It out-grows 95% of companies worldwide.

Revenue grew 16%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Revenue is set to grow 41%/yr over the next 3 years, ahead of most of the market.10/10

Revenue grew 16%/yr over the last 3 years and is set to grow 41%/yr from here.

The runway holds up: revenue is set to grow 55%/yr over five years.10/10

WATCH

Earnings are set to grow faster than sales (EPS about 47%/yr vs revenue 41%/yr), so margins should widen. One year dips: EPS falls 48% next year.

WEAKNESSES

None flagged.

BOTTOM LINE

Hyper Compounder

A top-tier grower that's speeding up. The one thing to watch: the earnings path has a down year.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG73 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+16%10

3-month return-4%5

YTD return+172%10

MID & LONG-TERM▾SCORE

% of 52-week high70%3

1-year return+242%10

3-year return+470%10

5-year return+54%6

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +470% over three years and +54% over five, ahead of 70% of the market.

It's up 242% over the past year, but 30% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+16%) and so far this year (+172%).

WATCH

Returns sit at the market level over three months (-4%).

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on DigitalOcean Holdings, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

DOCNDigitalOcean Holdings

Revenue FY25$901M

GROWTH RATING↗

VERY STRONG95 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+16%8

Revenue, next 1Y+31%9

Revenue, next 3Y, CAGR+41%10

Revenue, next 5Y, CAGR+55%10

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-48%2

EPS growth, FY27E+47%9

EPS growth, FY28E+65%10

GROWTH ASSESSMENT

STRENGTHS

It out-grows 95% of companies worldwide.

Revenue grew 16%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Revenue is set to grow 41%/yr over the next 3 years, ahead of most of the market.10/10

Revenue grew 16%/yr over the last 3 years and is set to grow 41%/yr from here.

The runway holds up: revenue is set to grow 55%/yr over five years.10/10

WATCH

Earnings are set to grow faster than sales (EPS about 47%/yr vs revenue 41%/yr), so margins should widen. One year dips: EPS falls 48% next year.

WEAKNESSES

None flagged.

BOTTOM LINE

Hyper Compounder

A top-tier grower that's speeding up. The one thing to watch: the earnings path has a down year.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG73 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+16%10

3-month return-4%5

YTD return+172%10

MID & LONG-TERM▾SCORE

% of 52-week high70%3

1-year return+242%10

3-year return+470%10

5-year return+54%6

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +470% over three years and +54% over five, ahead of 70% of the market.

It's up 242% over the past year, but 30% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+16%) and so far this year (+172%).

WATCH

Returns sit at the market level over three months (-4%).

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on DigitalOcean Holdings, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community