Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. DigitalOcean Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN1,138 Mil. DigitalOcean Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was MXN31,643 Mil. Therefore, DigitalOcean Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 3.60%.
The historical rank and industry rank for DigitalOcean Holdings's Return-on-Tangible-Asset or its related term are showing as below:
MEX:DOCN'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -14.96 Med: -1.61 Max: 20.24
Current: 16.39
During the past 8 years, DigitalOcean Holdings's highest Return-on-Tangible-Asset was 20.24%. The lowest was -14.96%. And the median was -1.61%.
MEX:DOCN's Return-on-Tangible-Asset is ranked better than 88.14% of 2883
companies
in the Software industry
Industry Median: 2.04
vs MEX:DOCN: 16.39
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
DigitalOcean Holdings Return-on-Tangible-Asset Related Terms
DigitalOcean Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for DigitalOcean Holdings's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Software - Infrastructure subindustry, DigitalOcean Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, DigitalOcean Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where DigitalOcean Holdings's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 3.60% mean?
DigitalOcean Holdings (MEX:DOCN) has a Return-on-Tangible-Asset of 3.60% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on DigitalOcean Holdings and its competitors. According to the industry distribution chart, DigitalOcean Holdings ranks #342 out of 2883 companies in the Software industry, placing it in the top 11.9%.
Is DigitalOcean Holdings' Return-on-Tangible-Asset too high?
DigitalOcean Holdings' current Return-on-Tangible-Asset is 3.60%. The Software industry median Return-on-Tangible-Asset is 2.04. DigitalOcean Holdings' value of 3.60% is 76.5% above this industry median. Based on the distribution chart, DigitalOcean Holdings ranks #342 out of 2883 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 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does DigitalOcean Holdings' Return-on-Tangible-Asset compare to RBRK and GEN?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #342 out of 2883 companies for Return-on-Tangible-Asset. This places DigitalOcean Holdings in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.04. DigitalOcean Holdings' value of 3.60% is 76.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.04, based on 2,883 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DigitalOcean Holdings's current Return-on-Tangible-Asset of 3.60% is 76.5% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on DigitalOcean Holdings and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalOcean Holdings's current Return-on-Tangible-Asset is 3.60%. 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 Return-on-Tangible-Asset is 3.60% and 76.5% above the Software industry median of 2.04. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For DigitalOcean Holdings (MEX:DOCN), the current Return-on-Tangible-Asset is 3.60% 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:
Return-on-Tangible-Asset: 3.60%
GF Value™: MXN848.06 vs. price of MXN2,921.92 (244.5% above fair value)
Industry Position: 76.5% above the Software median (#342 of 2883)
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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