DigitalOcean Holdings, Inc. (DOCN) is a Software - Infrastructure company in the Technology sector, currently trading at $73.45. It has a SharesGrow Score of 65/100, indicating a above average investment profile with 2 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of DOCN = $35.22 (-52% from the current price, the stock appears overvalued). Analyst consensus target is DOCN = $66 (-10.4% upside).
Valuation: DOCN trades at a trailing Price-to-Earnings (P/E) of 32 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 0.44.
Financials: revenue is $901M, +16.1%/yr average growth. Net income is $259M, growing at +240.7%/yr. Net profit margin is 28.8% (strong). Gross margin is 59.9% (-3.3 pp trend).
Balance sheet: total debt is $731M with negative equity of -$29M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 0.69 (tight liquidity). Debt-to-assets is 39.8%. Total assets: $1.8B.
Analyst outlook: 12 / 19 analysts rate DOCN as buy (63%) — moderate consensus.
SharesGrow 7-Criteria breakdown: Value 54/100 (Partial), Growth 90/100 (Pass), Past 75/100 (Partial), Health 50/100 (Partial), Moat 61/100 (Partial), Future 37/100 (Fail), Income 85/100 (Pass).
