DigitalOcean Holdings, Inc. (DOCN) P/E Ratio History
UndervaluedTrading at 54.4x vs 5Y avg 149.8x · 80th percentile · Below historical baseline · Data 2023–2026
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P/E Ratio Analysis
As of July 8, 2026, DigitalOcean Holdings, Inc. (DOCN) trades at a price-to-earnings ratio of 54.4x, with a stock price of $137.12 and trailing twelve-month earnings per share of $2.27.
The current P/E is 64% below its 5-year average of 149.8x. 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 80th percentile of its historical range.
Compared to the Technology sector median P/E of 29.6x, DOCN trades at a 84% premium to its sector peers. The sector includes 359 companies with P/E ratios ranging from 0.0x to 197.0x.
Relative to the broader market, DOCN commands a significant premium over the S&P 500 median P/E of 25.9x. 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.
DOCN Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
DOCN P/E vs Peers
Cloud infrastructure and hosting peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $17B | 37.3 | - | -6% | |
| $2.6T | 34.3 | 1.23 | +30% | |
| $2.9T | 28.5 | 1.51 | +16% | |
| $4.4T | 34.0 | 1.14Best | +34% | |
| $287B | 27.4 | 2.21 | +74%Best | |
| $407B | 24.3Lowest | 4.78 | +34% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
DOCN Historical P/E Data (2023–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q1 | - | $85.78 | $2.30 | 37.3x | -75% |
| FY2025 Q4 | Dec 31 2025 | $48.12 | $2.52 | 19.1x | -87% |
| FY2025 Q3 | - | $34.16 | $2.46 | 13.9x | -91% |
| FY2025 Q2 | Jun 30 2025 | $28.56 | $1.27 | 22.5x | -85% |
| FY2025 Q1 | Mar 31 2025 | $33.39 | $1.08 | 30.9x | -79% |
| FY2024 Q4 | - | $34.07 | $0.86 | 39.6x | -74% |
| FY2024 Q3 | Sep 30 2024 | $40.39 | $0.84 | 48.1x | -68% |
| FY2024 Q2 | Jun 30 2024 | $34.75 | $0.71 | 48.9x | -67% |
| FY2024 Q1 | Mar 31 2024 | $38.18 | $0.55 | 69.2x | -54% |
| FY2023 Q4 | Dec 31 2023 | $36.69 | $0.03 | 1168.5x | +680% |
Average P/E for displayed period: 149.8x
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
3+ years return with dividends reinvested.
DCA Calculator
See how regular investing compounds over time.
Peer Comparison
Compare growth, multiples, and margins vs sector.
DOCN — Frequently Asked Questions
Quick answers to the most common questions about buying DOCN stock.
What is DOCN's P/E ratio?
DigitalOcean Holdings, Inc. (DOCN) trailing twelve-month P/E ratio is 54.4x, based on TTM diluted EPS of $2.27. The 5-year average P/E is 149.8x and the historical range spans 13.9x to 1168.5x.
Is DOCN stock overvalued or undervalued?
DOCN trades at 54.4x P/E, below its 5-year average of 149.8x. At the 80th percentile of its historical range (13.9x–1168.5x), the stock is priced at a discount to its own history.
Is DOCN stock expensive?
No, DOCN is not expensive on a historical basis. The current P/E of 54.4x is below the 5-year average of 149.8x and sits at the 80th percentile of its valuation range.
What is DOCN's historical P/E range?
Over the past 5 years, DOCN's P/E ratio has ranged from 13.9x to 1168.5x, with a median of 39.6x and an average of 149.8x. The current P/E of 54.4x places the stock at the 80th percentile of this range. Full historical data spans 2023–2026.
How does DOCN's P/E compare to the S&P 500?
DOCN trades at 54.4x P/E versus the S&P 500 median of 25.9x. The 110% premium to the market typically reflects higher expected earnings growth or quality.
How does DOCN's valuation compare to Technology peers?
DigitalOcean Holdings, Inc. P/E of 54.4x compares to the Technology sector median of 29.6x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is DOCN's PEG ratio?
DOCN PEG ratio is N/A, based on a P/E of 54.4x and EPS growth of 183.1%. PEG normalises P/E by growth and helps compare stocks with different earnings trajectories.
What is DOCN's earnings yield?
DOCN earnings yield is 1.84%, the inverse of its 54.4x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.