A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for DigitalOcean Holdings's Debt-to-Equity or its related term are showing as below:
XSWX:DOCN'
s Debt-to-Equity Range Over the Past 10 Years
Min: -55.84 Med: -5.53 Max: 48.62
Current: 1.47
During the past 8 years, the highest Debt-to-Equity Ratio of DigitalOcean Holdings was 48.62. The lowest was -55.84. And the median was -5.53.
XSWX:DOCN's Debt-to-Equity is ranked worse than 91.33% of 2238
companies
in the Software industry
Industry Median: 0.19
vs XSWX:DOCN: 1.47
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
DigitalOcean Holdings Debt-to-Equity Related Terms
DigitalOcean Holdings Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for DigitalOcean Holdings's Debt-to-Equity 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.
For the Software - Infrastructure subindustry, DigitalOcean Holdings's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Software Industry
For the Software industry and Technology sector, DigitalOcean Holdings's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where DigitalOcean Holdings's Debt-to-Equity 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.
DigitalOcean Holdings (XSWX:DOCN) has a Debt-to-Equity of 1.47 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on DigitalOcean Holdings and its competitors. According to the industry distribution chart, DigitalOcean Holdings ranks #2044 out of 2238 companies in the Software industry, placing it in the top 91.3%.
Is DigitalOcean Holdings' Debt-to-Equity too high?
DigitalOcean Holdings' current Debt-to-Equity is 1.47. The Software industry median Debt-to-Equity is 0.19. DigitalOcean Holdings' value of 1.47 is 673.7% above this industry median. Based on the distribution chart, DigitalOcean Holdings ranks #2044 out of 2238 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, DigitalOcean Holdings has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does DigitalOcean Holdings' Debt-to-Equity compare to ?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #2044 out of 2238 companies for Debt-to-Equity. This places DigitalOcean Holdings in the lower half of its industry. The industry median Debt-to-Equity is 0.19. DigitalOcean Holdings' value of 1.47 is 673.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.19, based on 2,238 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DigitalOcean Holdings's current Debt-to-Equity of 1.47 is 673.7% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on DigitalOcean Holdings and its competitors. For the Software industry, the median Debt-to-Equity is 0.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalOcean Holdings's current Debt-to-Equity is 1.47. 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?
DigitalOcean Holdings (XSWX:DOCN) has a current Debt-to-Equity of 1.47. The stock's GF Value™ is CHF41.87, compared to a current price of CHF118.84 — trading 183.8% above its estimated fair value. The current Debt-to-Equity is 1.47 and 673.7% above the Software industry median of 0.19. DigitalOcean Holdings' overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For DigitalOcean Holdings (XSWX:DOCN), the current Debt-to-Equity is 1.47 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 (XSWX:DOCN) Overvalued in 2026?
Based on GuruFocus' analysis, DigitalOcean Holdings stock appears to be overvalued.
The current stock price of CHF118.84 is trading 183.8% above its estimated GF Value™ of CHF41.87.
Key valuation signals for XSWX:DOCN:
Debt-to-Equity: 1.47
GF Value™: CHF41.87 vs. price of CHF118.84 (183.8% above fair value)
Industry Position: 673.7% above the Software median (#2044 of 2238)
No single metric tells the full story. See the XSWX: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.
68GF Score
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