DigitalOcean Holdings Valuation
| DOCN Stock | USD 36.89 0.34 0.93% |
At this time, the firm appears to be undervalued. DigitalOcean Holdings shows a prevailing Real Value of $38.66 per share. The current price of the firm is $36.89. Our model computes the value of DigitalOcean Holdings from reviewing the firm fundamentals such as Current Valuation of 4.66 B, profit margin of 0.11 %, and Shares Outstanding of 92.07 M as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting DigitalOcean Holdings' valuation include:
Price Book 67.9206 | Enterprise Value | Enterprise Value Ebitda 19.6867 | Price Sales 4.3509 | Forward PE 19.305 |
Undervalued
Today
Please note that DigitalOcean Holdings' price fluctuation is very steady at this time. Calculation of the real value of DigitalOcean Holdings is based on 3 months time horizon. Increasing DigitalOcean Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since DigitalOcean Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of DigitalOcean Stock. However, DigitalOcean Holdings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 36.89 | Real 38.66 | Target 40.73 | Hype 37.0 | Naive 38.5 |
The intrinsic value of DigitalOcean Holdings' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence DigitalOcean Holdings' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of DigitalOcean Holdings helps investors to forecast how DigitalOcean stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of DigitalOcean Holdings more accurately as focusing exclusively on DigitalOcean Holdings' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use DigitalOcean Holdings' intrinsic value based on its ongoing forecasts of DigitalOcean Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against DigitalOcean Holdings' closest peers.
DigitalOcean Holdings Cash |
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DigitalOcean Valuation Trend
Knowing DigitalOcean Holdings' actual value is paramount for traders when making sound investment determinations. Using both DigitalOcean Holdings' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
DigitalOcean Holdings Total Value Analysis
DigitalOcean Holdings is currently forecasted to have valuation of 4.66 B with market capitalization of 3.4 B, debt of 1.7 B, and cash on hands of 1.17 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the DigitalOcean Holdings fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
4.66 B | 3.4 B | 1.7 B | 1.17 B |
DigitalOcean Holdings Investor Information
About 32.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.87. DigitalOcean Holdings had not issued any dividends in recent years. Based on the key indicators related to DigitalOcean Holdings' liquidity, profitability, solvency, and operating efficiency, DigitalOcean Holdings is doing better financially today then in previous quarter. It has a moderate chance of reporting better financial numbers in April.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 154.3 M | 282.7 M |
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DigitalOcean Holdings Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. DigitalOcean Holdings has an asset utilization ratio of 47.63 percent. This suggests that the Company is making $0.48 for each dollar of assets. An increasing asset utilization means that DigitalOcean Holdings is more efficient with each dollar of assets it utilizes for everyday operations.DigitalOcean Holdings Ownership Allocation
DigitalOcean Holdings holds a total of 92.07 Million outstanding shares. Over half of DigitalOcean Holdings' outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that obtain positions in a given instrument to benefit from reduced trade commissions. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.DigitalOcean Holdings Profitability Analysis
The company reported the previous year's revenue of 780.62 M. Net Income was 84.49 M with profit before overhead, payroll, taxes, and interest of 465.94 M.About DigitalOcean Holdings Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of DigitalOcean Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of DigitalOcean Holdings based exclusively on its fundamental and basic technical indicators. By analyzing DigitalOcean Holdings's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of DigitalOcean Holdings's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of DigitalOcean Holdings. We calculate exposure to DigitalOcean Holdings's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of DigitalOcean Holdings's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 465.9 M | 299.9 M | |
| Pretax Profit Margin | 0.13 | 0.13 | |
| Operating Profit Margin | 0.12 | 0.12 | |
| Net Profit Margin | 0.11 | 0.11 | |
| Gross Profit Margin | 0.60 | 0.46 |
DigitalOcean Holdings Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 94.5 M | |
| Quarterly Earnings Growth Y O Y | -0.239 | |
| Forward Price Earnings | 19.305 |
DigitalOcean Holdings Current Valuation Indicators
DigitalOcean Holdings' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final DigitalOcean Holdings' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as DigitalOcean Holdings, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use DigitalOcean Holdings' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes DigitalOcean Holdings' worth.When determining whether DigitalOcean Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of DigitalOcean Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Digitalocean Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Digitalocean Holdings Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DigitalOcean Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Is Internet Services & Infrastructure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DigitalOcean Holdings. If investors know DigitalOcean will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DigitalOcean Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.24) | Earnings Share 0.89 | Revenue Per Share | Quarterly Revenue Growth 0.133 | Return On Assets |
The market value of DigitalOcean Holdings is measured differently than its book value, which is the value of DigitalOcean that is recorded on the company's balance sheet. Investors also form their own opinion of DigitalOcean Holdings' value that differs from its market value or its book value, called intrinsic value, which is DigitalOcean Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DigitalOcean Holdings' market value can be influenced by many factors that don't directly affect DigitalOcean Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between DigitalOcean Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if DigitalOcean Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DigitalOcean Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.