DigitalOcean HoldingsXSWX:DOCN 68 EV-to-FCF is 353.64 as of Jul. 03, 2026, which is 579% above its 10-year median of 52.11. 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 1,589 Software companies, DigitalOcean Holdings ranks worse than 97.86% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, DigitalOcean Holdings's Enterprise Value is CHF11,442.34 Mil.
DigitalOcean Holdings's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was CHF32.36 Mil. Therefore, DigitalOcean Holdings's EV-to-FCF for today is 353.64.
The historical rank and industry rank for DigitalOcean Holdings's EV-to-FCF or its related term are showing as below:
XSWX:DOCN'
s EV-to-FCF Range Over the Past 10 Years
Min: -1726.45 Med: 52.11 Max: 1150.08
Current: 437
During the past 8 years, the highest EV-to-FCF of DigitalOcean Holdings was 1150.08. The lowest was -1726.45. And the median was 52.11.
XSWX:DOCN's EV-to-FCF is ranked worse than 97.86% of 1589
companies
in the Software industry
Industry Median: 14.3
vs XSWX:DOCN: 437.00
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
DigitalOcean Holdings's PE Ratio (TTM) for today is calculated as:
DigitalOcean Holdings's share price for today is CHF118.84.
DigitalOcean Holdings's Earnings per Share (Diluted) 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 CHF0.000.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
* 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, DigitalOcean Holdings's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where DigitalOcean Holdings's EV-to-FCF falls into.
DigitalOcean Holdings's current Enterprise Value is CHF11,442.34 Mil.
DigitalOcean Holdings's Free Cash Flow 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 CHF32.36 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-FCF of 353.64 as of Jul. 03, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on DigitalOcean Holdings and its competitors. This is 579% above median its historical median of 52.11. According to the industry distribution chart, DigitalOcean Holdings ranks #1555 out of 1589 companies in the Software industry, placing it in the top 97.9%.
Is DigitalOcean Holdings' EV-to-FCF too high?
DigitalOcean Holdings' current EV-to-FCF of 353.64 is 579% above median its 10-year median of 52.11. The Software industry median EV-to-FCF is 14.30. DigitalOcean Holdings' value of 353.64 is 2373% above this industry median. Based on the distribution chart, DigitalOcean Holdings ranks #1555 out of 1589 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-FCF compare to ?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #1555 out of 1589 companies for EV-to-FCF. This places DigitalOcean Holdings in the lower half of its industry. The industry median EV-to-FCF is 14.30. DigitalOcean Holdings' value of 353.64 is 2373% above this benchmark. While the company's 10-year median is 52.11 vs. the industry median of 14.30, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.30, based on 1,589 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DigitalOcean Holdings's current EV-to-FCF of 353.64 is 2373% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on DigitalOcean Holdings and its competitors. For the Software industry, the median EV-to-FCF is 14.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalOcean Holdings's current EV-to-FCF is 353.64, which is 579% above median its own 10-year median of 52.11. 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-FCF of 353.64. 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-FCF is 353.64, which is 579% above median its 10-year median of 52.11 and 2373% above the Software industry median of 14.30. 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For DigitalOcean Holdings (XSWX:DOCN), the current EV-to-FCF is 353.64 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-FCF: 353.64 (579% above median its 10-year median of 52.11)
GF Value™: CHF41.87 vs. price of CHF118.84 (183.8% above fair value)
Industry Position: 2373% above the Software median (#1555 of 1589)
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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