DigitalOcean HoldingsXSWX:DOCN 68 EV-to-EBIT is 52.96 as of Jul. 03, 2026, which is 94% above its 10-year median of 27.24. GuruFocus rates XSWX:DOCN with a GF Score™ of 68/100 and a GF Value™ of CHF41.87. The stock has 6 warning signs investors should review. Among 1,757 Software companies, DigitalOcean Holdings ranks worse than 87.65% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
DigitalOcean Holdings's Enterprise Value for the quarter that ended in Mar. 2026 was CHF0.00 Mil.
DigitalOcean Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF216.06 Mil.
* 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 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 EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, DigitalOcean Holdings's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where DigitalOcean Holdings's EV-to-EBIT falls into.
DigitalOcean Holdings's current Enterprise Value is CHF11,442.34 Mil.
DigitalOcean Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF216.06 Mil.
* 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 EV-to-EBIT of 52.96 as of Jul. 03, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on DigitalOcean Holdings and its competitors. This is 94% above median its historical median of 27.24. According to the industry distribution chart, DigitalOcean Holdings ranks #1540 out of 1757 companies in the Software industry, placing it in the top 87.6%.
Is DigitalOcean Holdings' EV-to-EBIT too high?
DigitalOcean Holdings' current EV-to-EBIT of 52.96 is 94% above median its 10-year median of 27.24. The Software industry median EV-to-EBIT is 14.28. DigitalOcean Holdings' value of 52.96 is 270.9% above this industry median. Based on the distribution chart, DigitalOcean Holdings ranks #1540 out of 1757 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' EV-to-EBIT compare to ?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #1540 out of 1757 companies for EV-to-EBIT. This places DigitalOcean Holdings in the lower half of its industry. The industry median EV-to-EBIT is 14.28. DigitalOcean Holdings' value of 52.96 is 270.9% above this benchmark. While the company's 10-year median is 27.24 vs. the industry median of 14.28, 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.28, based on 1,757 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DigitalOcean Holdings's current EV-to-EBIT of 52.96 is 270.9% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on DigitalOcean Holdings and its competitors. For the Software industry, the median EV-to-EBIT is 14.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalOcean Holdings's current EV-to-EBIT is 52.96, which is 94% above median its own 10-year median of 27.24. 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 EV-to-EBIT of 52.96. 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 EV-to-EBIT is 52.96, which is 94% above median its 10-year median of 27.24 and 270.9% above the Software industry median of 14.28. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For DigitalOcean Holdings (XSWX:DOCN), the current EV-to-EBIT is 52.96 as of Jul. 03, 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:
EV-to-EBIT: 52.96 (94% above median its 10-year median of 27.24)
GF Value™: CHF41.87 vs. price of CHF118.84 (183.8% above fair value)
Industry Position: 270.9% above the Software median (#1540 of 1757)
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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