D/E 1.70 — more levered than most Technology peers (≈90th pctile)
P/E61.8xC+
P/E 61.8 — above the Technology median (≈75th pctile)
PEG1.54C+
PEG 1.54 — modest premium; above fair value
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 45.8
Quality0.53
Growth0.63
Value0.28
Why this score
Diluting shareholders
Short track record
Entry · Margin of safety
52-week rangeNear 52-week high
25% off the 12-month high
vs DCF fair value1466% aboveest. fair value ~$9
Quality signals · context only
Gross profitability22% · Bgross profit ÷ total assets (Novy-Marx)
ROIC6.8% · C+return on invested capital — not score-weighted
Why now
Software - Infrastructure · market cap $14.7b. Down 25% from 52-week high of $187.50 — deep drawdown territory. Revenue growing +15%, comfortably above the S&P median. 13 sell-side analysts rate this a Buy with a mean 1-yr target of $178.85 (implying +27% upside).
Moat
Net margin 25% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 27% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Software economics — recurring revenue, embedded customer workflows, and high gross margin all compound the moat once a base account is won. Switching costs are the lever.
Risk
Trailing P/E 61.8x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Beta 1.57 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 15.5x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon
1-3 yr $178.85 (13-analyst consensus) — fundamentals + valuation re-rating. 5 yr $261.85 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $388.43 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · DOCN
$
%
%
Shares to buy
14
Position size
$1,972
3.9% of portfolio
Stop price
$105.63
25% below $140.84
$ at risk if stopped
$492.94
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
DigitalOcean Holdings, Inc. (DOCN): score, valuation & FAQ
DigitalOcean Holdings, Inc. (DOCN) is a Software - Infrastructure company that scores 45.8 out of 100 on the Bull Rankings quality-growth model — a below-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (B+), while FCF (C-) rate weaker. On valuation, DOCN sits about 1466% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich).
Is DOCN a good stock to buy?
Bull Rankings scores DOCN 45.8 out of 100 on its quality-growth model, which is a below-average reading. That is driven by Rev (B+). A score is a quantitative screen of DigitalOcean Holdings, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does DOCN score 45.8 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). DOCN earns its highest marks on Rev (B+), and is held back by FCF (C-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is DOCN overvalued or undervalued?
Based on $140.84, DOCN sits about 1466% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich). It trades at a 61.8x× P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in DOCN?
Trailing P/E 61.8x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Beta 1.57 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 15.5x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.