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DCF valuation

What is DigitalOcean Holdings, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on DigitalOcean Holdings, Inc.'s reported free cash flow gives $55.15 per share. The share price was $139.75 on September 25, 2026, 153% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$180.5M
Average free cash flow, last 5 years
$105.1M
Cash
$767M
balance sheet of June 30, 2026
Debt
$921.1M
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
105,343,000
Revenue growth per year, last 4 years
29.7%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear10.0%6.0%2.0%10.0%$32.94-76%
Base15.0%9.0%2.5%9.0%$55.15-61%
Bull20.0%11.5%3.0%8.0%$96.52-31%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$71.98$77.22$83.63$91.64$101.94
8.0%$59.34$62.74$66.76$71.58$77.48
9.0%$50.15$52.47$55.15$58.29$61.98
10.0%$43.17$44.83$46.70$48.84$51.32
11.0%$37.72$38.93$40.29$41.81$43.54

Where the presets come from

Base: years 1 to 5 grow at DigitalOcean Holdings, Inc.'s revenue growth rate over the last 4 fiscal years (29.7% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

DigitalOcean Holdings, Inc. company page