DigitalOcean HoldingsDOCN -5.47%68 Interest Coverage is 3.47 as of Mar. 2026, which is 60% below its 10-year median of 8.75. GuruFocus rates DOCN with a GF Score™ of 68/100 and a GF Value™ of $45.62 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,706 Software companies, DigitalOcean Holdings ranks worse than 74.68% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. DigitalOcean Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was $36.6 Mil. DigitalOcean Holdings's Interest Expense for the
three
months ended in Mar. 2026 was $-10.6 Mil.
DigitalOcean Holdings's interest coverage for the quarter that ended in Mar. 2026 was 3.47.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for DigitalOcean Holdings's Interest Coverage or its related term are showing as below:
DOCN'
s Interest Coverage Range Over the Past 10 Years
Min: 3.66 Med: 8.75 Max: 9.99
Current: 5.93
DOCN's Interest Coverage is ranked worse than 74.68% of 1706
companies
in the Software industry
Industry Median: 24.695
vs DOCN: 5.93
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
DigitalOcean Holdings Interest Coverage Related Terms
DigitalOcean Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for DigitalOcean Holdings's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
DOCN vs RBRK, GEN, TOST: Interest Coverage Comparison
For the Software - Infrastructure subindustry, DigitalOcean Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, DigitalOcean Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where DigitalOcean Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (DOCN) has a Interest Coverage of 3.47 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on DigitalOcean Holdings and its competitors. This is 60% below median its historical median of 8.75. Over the past decade, DigitalOcean Holdings' Interest Coverage has ranged from 3.66 to 9.99. According to the industry distribution chart, DigitalOcean Holdings ranks #1274 out of 1706 companies in the Software industry, placing it in the top 74.7%.
Is DigitalOcean Holdings' Interest Coverage too high?
DigitalOcean Holdings' current Interest Coverage of 3.47 is 60% below median its 10-year median of 8.75. Over the past 10 years, this metric has ranged from a low of 3.66 to a high of 9.99. The Software industry median Interest Coverage is 24.70. DigitalOcean Holdings' value of 3.47 is 85.9% below this industry median. Based on the distribution chart, DigitalOcean Holdings ranks #1274 out of 1706 companies in the Software industry, which is below the industry midpoint. Overall, DigitalOcean Holdings has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does DigitalOcean Holdings' Interest Coverage compare to RBRK and GEN?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #1274 out of 1706 companies for Interest Coverage. This places DigitalOcean Holdings in the lower half of its industry. The industry median Interest Coverage is 24.70. DigitalOcean Holdings' value of 3.47 is 85.9% below this benchmark. Historically, DigitalOcean Holdings' own Interest Coverage has ranged from 3.66 to 9.99 over the past decade. While the company's 10-year median is 8.75 vs. the industry median of 24.70, DigitalOcean Holdings has consistently been below 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.70, based on 1,706 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DigitalOcean Holdings's current Interest Coverage of 3.47 is 85.9% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on DigitalOcean Holdings and its competitors. For the Software industry, the median Interest Coverage is 24.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalOcean Holdings's current Interest Coverage is 3.47, which is 60% below median its own 10-year median of 8.75. 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 (DOCN) is currently considered Significantly Overvalued. The stock's GF Value™ is $45.62, compared to a current price of $148.59 — trading 225.7% above its estimated fair value. The current Interest Coverage is 3.47, which is 60% below median its 10-year median of 8.75 and 85.9% below the Software industry median of 24.70. DigitalOcean Holdings' overall GF Score™ is 68/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For DigitalOcean Holdings (DOCN), the current Interest Coverage is 3.47 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 (DOCN) Overvalued in 2026?
Based on GuruFocus' analysis, DigitalOcean Holdings stock appears to be overvalued.
The current stock price of $148.59 is trading 225.7% above its estimated GF Value™ of $45.62.
GuruFocus considers DigitalOcean Holdings to be Significantly Overvalued.
Key valuation signals for DOCN:
Interest Coverage: 3.47 (60% below median its 10-year median of 8.75)
GF Value™: $45.62 vs. price of $148.59 (225.7% above fair value)
Industry Position: 85.9% below the Software median (#1274 of 1706)
No single metric tells the full story. See the 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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