DigitalOcean HoldingsMEX:DOCN 50 Debt-to-EBITDA is 4.04 as of Mar. 2026, which is 44% below its 10-year median of 7.16. GuruFocus rates MEX:DOCN with a GF Score™ of 50/100 and a GF Value™ of MXN848.06 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,699 Software companies, DigitalOcean Holdings ranks worse than 79.52% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for DigitalOcean Holdings's Debt-to-EBITDA or its related term are showing as below:
MEX:DOCN'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.52 Med: 7.16 Max: 19.79
Current: 3.52
During the past 8 years, the highest Debt-to-EBITDA Ratio of DigitalOcean Holdings was 19.79. The lowest was 3.52. And the median was 7.16.
MEX:DOCN's Debt-to-EBITDA is ranked worse than 79.52% of 1699
companies
in the Software industry
Industry Median: 1.08
vs MEX:DOCN: 3.52
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
DigitalOcean Holdings Debt-to-EBITDA Related Terms
DigitalOcean Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for DigitalOcean Holdings's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:DOCN vs RBRK, GEN, TOST: Debt-to-EBITDA Comparison
For the Software - Infrastructure subindustry, DigitalOcean Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DigitalOcean Holdings Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, DigitalOcean Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where DigitalOcean Holdings's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
DigitalOcean Holdings (MEX:DOCN) has a Debt-to-EBITDA of 4.04 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on DigitalOcean Holdings. This is 44% below median its historical median of 7.16. Over the past decade, DigitalOcean Holdings' Debt-to-EBITDA has ranged from 3.52 to 19.79. According to the industry distribution chart, DigitalOcean Holdings ranks #1351 out of 1699 companies in the Software industry, placing it in the top 79.5%.
Is DigitalOcean Holdings' Debt-to-EBITDA too high?
DigitalOcean Holdings' current Debt-to-EBITDA of 4.04 is 44% below median its 10-year median of 7.16. Over the past 10 years, this metric has ranged from a low of 3.52 to a high of 19.79. The Software industry median Debt-to-EBITDA is 1.08. DigitalOcean Holdings' value of 4.04 is 274.1% above this industry median. Based on the distribution chart, DigitalOcean Holdings ranks #1351 out of 1699 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, DigitalOcean Holdings has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does DigitalOcean Holdings' Debt-to-EBITDA compare to RBRK and GEN?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #1351 out of 1699 companies for Debt-to-EBITDA. This places DigitalOcean Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 1.08. DigitalOcean Holdings' value of 4.04 is 274.1% above this benchmark. Historically, DigitalOcean Holdings' own Debt-to-EBITDA has ranged from 3.52 to 19.79 over the past decade. While the company's 10-year median is 7.16 vs. the industry median of 1.08, DigitalOcean Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.08, based on 1,699 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DigitalOcean Holdings's current Debt-to-EBITDA of 4.04 is 274.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on DigitalOcean Holdings. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalOcean Holdings's current Debt-to-EBITDA is 4.04, which is 44% below median its own 10-year median of 7.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DigitalOcean Holdings stock overvalued right now?
Based on GuruFocus' analysis, DigitalOcean Holdings (MEX:DOCN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN848.06, compared to a current price of MXN2,921.92 — trading 244.5% above its estimated fair value. The current Debt-to-EBITDA is 4.04, which is 44% below median its 10-year median of 7.16 and 274.1% above the Software industry median of 1.08. DigitalOcean Holdings' overall GF Score™ is 50/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For DigitalOcean Holdings (MEX:DOCN), the current Debt-to-EBITDA is 4.04 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is DigitalOcean Holdings (MEX:DOCN) Overvalued in 2026?
Based on GuruFocus' analysis, DigitalOcean Holdings stock appears to be overvalued.
The current stock price of MXN2,921.92 is trading 244.5% above its estimated GF Value™ of MXN848.06.
GuruFocus considers DigitalOcean Holdings to be Significantly Overvalued.
Key valuation signals for MEX:DOCN:
Debt-to-EBITDA: 4.04 (44% below median its 10-year median of 7.16)
GF Value™: MXN848.06 vs. price of MXN2,921.92 (244.5% above fair value)
Industry Position: 274.1% above the Software median (#1351 of 1699)
No single metric tells the full story. See the MEX:DOCN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DigitalOcean Holdings Inc is a cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups, and small and medium-sized businesses. The customers use the platform for a wide range of cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, and managed services, among many others. Geographically, the company generates maximum revenue from North America and also has a presence in Europe, Asia, and the Rest of the world.
50GF Score
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