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The 1-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past year. As of today (2026-08-03), DigitalOcean Holdings's 1-Year Sortino Ratio is 69.55.
DigitalOcean Holdings (NYSE:DOCN) 1-Year Sortino Ratio Explanation
The 1-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by the standard deviation of negative returns over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
DigitalOcean Holdings 1-Year Sortino Ratio Related Terms
DOCN vs NTNX, RBRK, CHKP: 1-Year Sortino Ratio Comparison
For the Software - Infrastructure subindustry, DigitalOcean Holdings's 1-Year Sortino Ratio, along with its competitors' market caps and 1-Year Sortino 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 1-Year Sortino Ratio vs Software Industry
For the Software industry and Technology sector, DigitalOcean Holdings's 1-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where DigitalOcean Holdings's 1-Year Sortino Ratio falls into.
DigitalOcean Holdings 1-Year Sortino Ratio Calculation
The 1-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio over the past year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 1-Year Sortino Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the downside risks over one year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
DigitalOcean Holdings (DOCN) has a 1-Year Sortino Ratio of 69.55 as of Aug. 03, 2026. 1-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk. View historical data for DigitalOcean Holdings and its competitors.
Is DigitalOcean Holdings' 1-Year Sortino Ratio too high?
DigitalOcean Holdings' current 1-Year Sortino Ratio is 69.55. 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' 1-Year Sortino Ratio compare to NTNX and RBRK?
DigitalOcean Holdings' 1-Year Sortino Ratio of 69.55 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sortino Ratio for a Software company?
A good 1-Year Sortino Ratio depends on the Software industry context. However, 1-Year Sortino Ratio 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 1-Year Sortino Ratio mean?
A high 1-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk. View historical data for DigitalOcean Holdings and its competitors. DigitalOcean Holdings's current 1-Year Sortino Ratio is 69.55. 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 (DOCN) is currently considered Significantly Overvalued. The stock's GF Value™ is $46.95, compared to a current price of $127.17 — trading 170.9% above its estimated fair value. The current 1-Year Sortino Ratio is 69.55. 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 1-Year Sortino Ratio calculated?
1-Year Sortino Ratio is calculated from a company's financial statements. For DigitalOcean Holdings (DOCN), the current 1-Year Sortino Ratio is 69.55 as of Aug. 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 (DOCN) Overvalued in 2026?
Based on GuruFocus' analysis, DigitalOcean Holdings stock appears to be overvalued.
The current stock price of $127.17 is trading 170.9% above its estimated GF Value™ of $46.95.
GuruFocus considers DigitalOcean Holdings to be Significantly Overvalued.
Key valuation signals for DOCN:
1-Year Sortino Ratio: 69.55
GF Value™: $46.95 vs. price of $127.17 (170.9% above fair value)
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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