DigitalOcean Holdings (MEX:DOCN) 5-Year RORE % : 79.21% (As of Mar. 2026)


MEX:DOCN DigitalOcean Holdings Inc MEX:DOCN
50 GF Score
Price MXN2,921.92
GF Value MXN848.06
Valuation Significantly Overvalued
! 10 Warning Signs
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What is DigitalOcean Holdings 5-Year RORE %?

DigitalOcean Holdings MEX:DOCN 50 5-Year RORE % is 79.21 as of Mar. 2026. 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 2,204 Software companies, DigitalOcean Holdings ranks better than 91.02% on this metric.

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. DigitalOcean Holdings's 5-Year RORE % for the quarter that ended in Mar. 2026 was 79.21%.

The industry rank for DigitalOcean Holdings's 5-Year RORE % or its related term are showing as below:

MEX:DOCN's 5-Year RORE % is ranked better than
91.02% of 2204 companies
in the Software industry
Industry Median: 2.51 vs MEX:DOCN: 79.21

DigitalOcean Holdings  (MEX:DOCN) 5-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


DigitalOcean Holdings 5-Year RORE % Related Terms


DigitalOcean Holdings 5-Year RORE % Historical Data

* Premium members only.

The historical data trend for DigitalOcean Holdings's 5-Year RORE % 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.

DigitalOcean Holdings 5-Year RORE % Chart

DigitalOcean Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
5-Year RORE %
Get a 7-Day Free Trial 0.00 0.00 0.00 -35,522.67 90.39

DigitalOcean Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
5-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 239.43 161.28 102.48 90.39 79.21

MEX:DOCN vs RBRK, GEN, TOST: 5-Year RORE % Comparison

For the Software - Infrastructure subindustry, DigitalOcean Holdings's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Software Industry

For the Software industry and Technology sector, DigitalOcean Holdings's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where DigitalOcean Holdings's 5-Year RORE % falls into.


MEX:DOCN
50GF Score
DigitalOcean Holdings Inc MEX:DOCN
5-Year RORE % is just one metric. See GF Score™, valuation, warning signs, and more.
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DigitalOcean Holdings 5-Year RORE % Calculation

DigitalOcean Holdings's 5-Year RORE % for the quarter that ended in Mar. 2026 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( 42.069--6.451 )/( 61.939-0 )
=48.52/61.939
=78.34 %

* 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.

Frequently Asked Questions Learn more about 5-Year RORE % →
What does a 5-Year RORE % of 79.21 mean?
DigitalOcean Holdings (MEX:DOCN) has a 5-Year RORE % of 79.21 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on DigitalOcean Holdings and its competitors. According to the industry distribution chart, DigitalOcean Holdings ranks #198 out of 2204 companies in the Software industry, placing it in the top 9%.
Is DigitalOcean Holdings' 5-Year RORE % too high?
DigitalOcean Holdings' current 5-Year RORE % is 79.21. The Software industry median 5-Year RORE % is 2.51. DigitalOcean Holdings' value of 79.21 is 3055.8% above this industry median. Based on the distribution chart, DigitalOcean Holdings ranks #198 out of 2204 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' 5-Year RORE % compare to RBRK and GEN?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #198 out of 2204 companies for 5-Year RORE %. This places DigitalOcean Holdings in the top 9% of its industry — outperforming the majority of peers. The industry median 5-Year RORE % is 2.51. DigitalOcean Holdings' value of 79.21 is 3055.8% 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 5-Year RORE % for a Software company?
The median 5-Year RORE % among Software companies is 2.51, based on 2,204 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DigitalOcean Holdings's current 5-Year RORE % of 79.21 is 3055.8% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on DigitalOcean Holdings and its competitors. For the Software industry, the median 5-Year RORE % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalOcean Holdings's current 5-Year RORE % is 79.21. 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 5-Year RORE % is 79.21 and 3055.8% above the Software industry median of 2.51. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For DigitalOcean Holdings (MEX:DOCN), the current 5-Year RORE % is 79.21 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:

  • 5-Year RORE %: 79.21
  • GF Value™: MXN848.06 vs. price of MXN2,921.92 (244.5% above fair value)
  • GF Score™: 50/100 with 10 warning signs
  • Industry Position: 3055.8% above the Software median (#198 of 2204)

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 Business Description

Other Exchanges DOCN:USA0SU:Germany
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.
50GF Score

Get the complete analysis for MEX:DOCN

5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN2,921.92
Price
MXN848.06
GF Value