DigitalOcean HoldingsMEX:DOCN 50 PEG Ratio is 1.57 as of Jun. 24, 2026, which is 185% above its 10-year median of 0.55. 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 821 Software companies, DigitalOcean Holdings ranks worse than 58.47% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for DigitalOcean Holdings's PEG Ratio or its related term are showing as below:
MEX:DOCN'
s PEG Ratio Range Over the Past 10 Years
Min: 0.38 Med: 0.55 Max: 1.93
Current: 1.55
During the past 8 years, DigitalOcean Holdings's highest PEG Ratio was 1.93. The lowest was 0.38. And the median was 0.55.
MEX:DOCN's PEG Ratio is ranked worse than 58.47% of 821
companies
in the Software industry
Industry Median: 1.28
vs MEX:DOCN: 1.55
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
DigitalOcean Holdings (MEX:DOCN) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
* 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 PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Software Industry
For the Software industry and Technology sector, DigitalOcean Holdings's PEG Ratio distribution charts can be found below:
* The bar in red indicates where DigitalOcean Holdings's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
DigitalOcean Holdings (MEX:DOCN) has a PEG Ratio of 1.57 as of Jun. 24, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on DigitalOcean Holdings and its competitors. This is 185% above median its historical median of 0.55. Over the past decade, DigitalOcean Holdings' PEG Ratio has ranged from 0.38 to 1.93. According to the industry distribution chart, DigitalOcean Holdings ranks #480 out of 821 companies in the Software industry, placing it in the top 58.5%.
Is DigitalOcean Holdings' PEG Ratio too high?
DigitalOcean Holdings' current PEG Ratio of 1.57 is 185% above median its 10-year median of 0.55. Over the past 10 years, this metric has ranged from a low of 0.38 to a high of 1.93. The Software industry median PEG Ratio is 1.28. DigitalOcean Holdings' value of 1.57 is 22.7% above this industry median. Based on the distribution chart, DigitalOcean Holdings ranks #480 out of 821 companies in the Software industry, which is below 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' PEG Ratio compare to RBRK and GEN?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #480 out of 821 companies for PEG Ratio. This places DigitalOcean Holdings in the lower half of its industry. The industry median PEG Ratio is 1.28. DigitalOcean Holdings' value of 1.57 is 22.7% above this benchmark. Historically, DigitalOcean Holdings' own PEG Ratio has ranged from 0.38 to 1.93 over the past decade. While the company's 10-year median is 0.55 vs. the industry median of 1.28, 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 PEG Ratio for a Software company?
The median PEG Ratio among Software companies is 1.28, based on 821 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DigitalOcean Holdings's current PEG Ratio of 1.57 is 22.7% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on DigitalOcean Holdings and its competitors. For the Software industry, the median PEG Ratio is 1.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalOcean Holdings's current PEG Ratio is 1.57, which is 185% above median its own 10-year median of 0.55. 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 PEG Ratio is 1.57, which is 185% above median its 10-year median of 0.55 and 22.7% above the Software industry median of 1.28. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For DigitalOcean Holdings (MEX:DOCN), the current PEG Ratio is 1.57 as of Jun. 24, 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:
PEG Ratio: 1.57 (185% above median its 10-year median of 0.55)
GF Value™: MXN848.06 vs. price of MXN2,921.92 (244.5% above fair value)
Industry Position: 22.7% above the Software median (#480 of 821)
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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