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DigitalOcean Holdings (DigitalOcean Holdings) PEG Ratio : 0.64 (As of May. 03, 2024)


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What is DigitalOcean Holdings PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, DigitalOcean Holdings's PE Ratio without NRI is 25.88. DigitalOcean Holdings's 5-Year EBITDA growth rate is 40.30%. Therefore, DigitalOcean Holdings's PEG Ratio for today is 0.64.

* 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:

DOCN' s PEG Ratio Range Over the Past 10 Years
Min: 0.61   Med: 0.69   Max: 0.76
Current: 0.64


During the past 6 years, DigitalOcean Holdings's highest PEG Ratio was 0.76. The lowest was 0.61. And the median was 0.69.


DOCN's PEG Ratio is ranked better than
82.31% of 769 companies
in the Software industry
Industry Median: 1.59 vs DOCN: 0.64

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


DigitalOcean Holdings PEG Ratio Historical Data

The historical data trend for DigitalOcean Holdings's PEG Ratio 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.

* Premium members only.

DigitalOcean Holdings PEG Ratio Chart

DigitalOcean Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Get a 7-Day Free Trial - - - - 0.57

DigitalOcean Holdings Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PEG Ratio 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 - - - - 0.57

Competitive Comparison of DigitalOcean Holdings's PEG Ratio

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's PEG Ratio Distribution in the 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.



DigitalOcean Holdings PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

DigitalOcean Holdings's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=25.880574452003/40.30
=0.64

* 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  (NYSE: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.


DigitalOcean Holdings PEG Ratio Related Terms

Thank you for viewing the detailed overview of DigitalOcean Holdings's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


DigitalOcean Holdings (DigitalOcean Holdings) Business Description

Traded in Other Exchanges
Address
101 6th Avenue, New York, NY, USA, 10013
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. The group has a business presence in North America, Europe, Asia and Other countries.
Executives
Yancey L. Spruill director, officer: Chief Executive Officer 1601 DRY CREEK DRIVE, SUITE 260, LONGMONT CO 80503
Megan Wood officer: Chief Strategy Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Jeffrey Scott Guy officer: Chief Operating Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Warren Jenson director 30 FREDRICK AVE, ATHERTON CA 94027
Harold Matthew Norman officer: Chief People Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Christopher Merritt director C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Carly D Brantz officer: Chief Marketing Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Alan Shapiro officer: General Counsel
Amy S Butte director C/O L CATTERTON MANAGEMENT, 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
Matt Steinfort officer: Chief Financial Officer 1805 29TH STREET SUITE 2050, BOULDER CO 80301
Muhammad Aaqib Gadit officer: Chief Revenue Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Gabriel Monroy officer: Chief Product Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Adrienne Elizabeth Calderone officer: SVP, Chief Accounting Officer 101 6TH AVENUE, NEW YORK NY 10013
Andreessen Horowitz Fund Iii, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Ah Capital Management, L.l.c. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025

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