DigitalOcean Holdings (XSWX:DOCN) Moat Score: 4/10 (As of Jul. 03, 2026)


XSWX:DOCN DigitalOcean Holdings Inc XSWX:DOCN
68 GF Score
Price CHF107.86
GF Value CHF41.87
! 6 Warning Signs
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What is DigitalOcean Holdings Moat Score?

DigitalOcean Holdings XSWX:DOCN 68 Moat Score is 4 as of Jul. 03, 2026. 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 2,844 Software companies, DigitalOcean Holdings ranks better than 90.15% on this metric.

DigitalOcean Holdings has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

DigitalOcean Holdings has Narrow Moat: DigitalOcean has a discernible but modest moat with a niche market leadership in cloud services for small businesses. Its network effects and customer switching costs are present but not strong enough for a higher score.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes DigitalOcean Holdings might have Narrow Moat - Discernible but modest moat.

DigitalOcean Holdings  (XSWX:DOCN) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

DigitalOcean Holdings Moat Score Related Terms

XSWX:DOCN vs : Moat Score Comparison

For the Software - Infrastructure subindustry, DigitalOcean Holdings's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Software Industry

For the Software industry and Technology sector, DigitalOcean Holdings's Moat Score distribution charts can be found below:

* The bar in red indicates where DigitalOcean Holdings's Moat Score falls into.


XSWX:DOCN
68GF Score
DigitalOcean Holdings Inc XSWX:DOCN
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
DigitalOcean Holdings (XSWX:DOCN) has a Moat Score of 4 as of Jul. 03, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, DigitalOcean Holdings ranks #280 out of 2844 companies in the Software industry, placing it in the top 9.8%.
Is DigitalOcean Holdings' Moat Score too high?
DigitalOcean Holdings' current Moat Score is 4. Based on the distribution chart, DigitalOcean Holdings ranks #280 out of 2844 companies in the Software industry, which is in the top quartile — a strong position 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' Moat Score compare to ?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #280 out of 2844 companies for Moat Score. This places DigitalOcean Holdings in the top 10% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. DigitalOcean Holdings's current Moat Score is 4. 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 Moat Score of 4. The stock's GF Value™ is CHF41.87, compared to a current price of CHF107.86 — trading 157.6% above its estimated fair value. The current Moat Score is 4. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For DigitalOcean Holdings (XSWX:DOCN), the current Moat Score is 4 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 CHF107.86 is trading 157.6% above its estimated GF Value™ of CHF41.87.

Key valuation signals for XSWX:DOCN:

  • Moat Score: 4
  • GF Value™: CHF41.87 vs. price of CHF107.86 (157.6% above fair value)
  • GF Score™: 68/100 with 6 warning signs

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 Business Description

Comparable Companies
Address 105 Edgeview Drive, Suite 425, Broomfield, CO, USA, 80021
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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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF107.86
Price
CHF41.87
GF Value