DigitalOcean HoldingsMEX:DOCN 50 Gross Margin % is 56.11% as of Mar. 2026, which is 4% below its 10-year median of 58.53. 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 2,683 Software companies, DigitalOcean Holdings ranks better than 69.06% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
DigitalOcean Holdings had a gross margin of 56.11% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
DigitalOcean Holdings Gross Margin % Related Terms
DigitalOcean Holdings Gross Margin % Historical Data
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The historical data trend for DigitalOcean Holdings's Gross Margin % 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: Gross Margin % Comparison
For the Software - Infrastructure subindustry, DigitalOcean Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Software Industry
For the Software industry and Technology sector, DigitalOcean Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DigitalOcean Holdings's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
DigitalOcean Holdings (MEX:DOCN) has a Gross Margin % of 56.11% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on DigitalOcean Holdings and its competitors. This is near median its historical median of 58.53. Over the past decade, DigitalOcean Holdings' Gross Margin % has ranged from 52.02 to 63.23. According to the industry distribution chart, DigitalOcean Holdings ranks #830 out of 2683 companies in the Software industry, placing it in the top 30.9%.
Is DigitalOcean Holdings' Gross Margin % too high?
DigitalOcean Holdings' current Gross Margin % of 56.11% is near median its 10-year median of 58.53. Over the past 10 years, this metric has ranged from a low of 52.02 to a high of 63.23. The Software industry median Gross Margin % is 40.45. DigitalOcean Holdings' value of 56.11% is 38.7% above this industry median. Based on the distribution chart, DigitalOcean Holdings ranks #830 out of 2683 companies in the Software industry, which is above the industry midpoint. 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' Gross Margin % compare to RBRK and GEN?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #830 out of 2683 companies for Gross Margin %. This puts DigitalOcean Holdings in the upper half of its industry. The industry median Gross Margin % is 40.45. DigitalOcean Holdings' value of 56.11% is 38.7% above this benchmark. Historically, DigitalOcean Holdings' own Gross Margin % has ranged from 52.02 to 63.23 over the past decade. While the company's 10-year median is 58.53 vs. the industry median of 40.45, 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 Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DigitalOcean Holdings's current Gross Margin % of 56.11% is 38.7% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on DigitalOcean Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalOcean Holdings's current Gross Margin % is 56.11%, which is near median its own 10-year median of 58.53. 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 Gross Margin % is 56.11%, which is near median its 10-year median of 58.53 and 38.7% above the Software industry median of 40.45. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For DigitalOcean Holdings (MEX:DOCN), the current Gross Margin % is 56.11% 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:
Gross Margin %: 56.11% (near median its 10-year median of 58.53)
GF Value™: MXN848.06 vs. price of MXN2,921.92 (244.5% above fair value)
Industry Position: 38.7% above the Software median (#830 of 2683)
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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