DigitalOcean HoldingsMEX:DOCN 50 Altman Z-Score is 6.41 as of Jun. 24, 2026, which is 232% above its 10-year median of 1.93. 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 2,763 Software companies, DigitalOcean Holdings ranks better than 80.2% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 6.62 is strong.
DigitalOcean Holdings has a Altman Z-Score of 6.41, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for DigitalOcean Holdings's Altman Z-Score or its related term are showing as below:
MEX:DOCN'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.09 Med: 1.93 Max: 86.33
Current: 6.62
During the past 8 years, DigitalOcean Holdings's highest Altman Z-Score was 86.33. The lowest was 1.09. And the median was 1.93.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
DigitalOcean Holdings Altman Z-Score Related Terms
DigitalOcean Holdings Altman Z-Score Historical Data
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The historical data trend for DigitalOcean Holdings's Altman Z-Score 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: Altman Z-Score Comparison
For the Software - Infrastructure subindustry, DigitalOcean Holdings's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score vs Software Industry
For the Software industry and Technology sector, DigitalOcean Holdings's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where DigitalOcean Holdings's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
DigitalOcean Holdings (MEX:DOCN) has a Altman Z-Score of 6.41 as of Jun. 24, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on DigitalOcean Holdings and its competitors. This is 232% above median its historical median of 1.93. Over the past decade, DigitalOcean Holdings' Altman Z-Score has ranged from 1.09 to 86.33. According to the industry distribution chart, DigitalOcean Holdings ranks #547 out of 2763 companies in the Software industry, placing it in the top 19.8%.
Is DigitalOcean Holdings' Altman Z-Score too high?
DigitalOcean Holdings' current Altman Z-Score of 6.41 is 232% above median its 10-year median of 1.93. Over the past 10 years, this metric has ranged from a low of 1.09 to a high of 86.33. The Software industry median Altman Z-Score is 3.13. DigitalOcean Holdings' value of 6.41 is 104.8% above this industry median. Based on the distribution chart, DigitalOcean Holdings ranks #547 out of 2763 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' Altman Z-Score compare to RBRK and GEN?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #547 out of 2763 companies for Altman Z-Score. This places DigitalOcean Holdings in the top 20% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.13. DigitalOcean Holdings' value of 6.41 is 104.8% above this benchmark. Historically, DigitalOcean Holdings' own Altman Z-Score has ranged from 1.09 to 86.33 over the past decade. While the company's 10-year median is 1.93 vs. the industry median of 3.13, 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 Altman Z-Score for a Software company?
The median Altman Z-Score among Software companies is 3.13, based on 2,763 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DigitalOcean Holdings's current Altman Z-Score of 6.41 is 104.8% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on DigitalOcean Holdings and its competitors. For the Software industry, the median Altman Z-Score is 3.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalOcean Holdings's current Altman Z-Score is 6.41, which is 232% above median its own 10-year median of 1.93. 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 Altman Z-Score is 6.41, which is 232% above median its 10-year median of 1.93 and 104.8% above the Software industry median of 3.13. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For DigitalOcean Holdings (MEX:DOCN), the current Altman Z-Score is 6.41 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:
Altman Z-Score: 6.41 (232% above median its 10-year median of 1.93)
GF Value™: MXN848.06 vs. price of MXN2,921.92 (244.5% above fair value)
Industry Position: 104.8% above the Software median (#547 of 2763)
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.
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