DigitalOcean Holdings, Inc. cash flow to debt ratio of 42.38% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

DigitalOcean Holdings, Inc.'s free cash flow has decreased 57.29% from $96.20M last year to $41.09M, signaling decreasing performance

DigitalOcean Holdings, Inc.'s debt to equity ratio is 1.61, which means that the company's assets are unhealthy financed, signaling financial risk.

DigitalOcean Holdings, Inc.'s debt has increased relative to shareholder equity from -8.35 last year to 1.61 today, signaling weakened financials

DigitalOcean Holdings, Inc. has a net debt to EBITDA ratio of 1.31x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

DigitalOcean Holdings, Inc.'s interest coverage ratio of 5.36 indicates that earnings with good margin can cover interest payments on company debt

DigitalOcean Holdings, Inc.'s profit margin has increased (114.95%) in the last year from 10.82% to 23.27%, signaling increasing performance

DigitalOcean Holdings, Inc.'s short-term liabilities of $619.46M exceed its short-term assets of $426.98M, signaling financial risk

DigitalOcean Holdings, Inc.'s return on assets of 7.53% is higher than the 5.00% threshold, indicating efficient asset utilization

DigitalOcean Holdings, Inc.'s return on equity of 54.71%, is higher than 15.00%, indicating good performance

DigitalOcean Holdings, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

DigitalOcean Holdings, Inc. had positive net income in 3 out of 5 years, indicating stable and consistent earnings

DigitalOcean Holdings, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

DigitalOcean Holdings, Inc. has a free cash flow yield of 0.27%, which is below the 2.00% threshold, indicating limited cash return relative to market value

DigitalOcean Holdings, Inc.'s yearly earnings has increased 206.85% since last year from $84.49M to $259.26M, signaling increasing performance

DigitalOcean Holdings, Inc.'s yearly revenue has increased 15.48% since last year from $780.62M to $901.43M, signaling increasing performance

ROIC 5.37% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

DigitalOcean Holdings, Inc.'s 3-year revenue CAGR of 16.08% is positive, indicating growing revenue over the past 3 years

DigitalOcean Holdings, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

DigitalOcean Holdings, Inc. had positive ROE in only 0 out of 5 years, indicating inconsistent returns on equity

DigitalOcean Holdings, Inc. has insufficient data to evaluate this check.

DigitalOcean Holdings, Inc. has an earnings yield of 1.73%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

DigitalOcean Holdings, Inc. is overvalued relative to its fair value price of 20.11 based on EBITDA multiple model

DigitalOcean Holdings, Inc. has an EV/EBITDA ratio of 43.21x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

DigitalOcean Holdings, Inc. has insufficient data to evaluate this check.

DigitalOcean Holdings, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

DigitalOcean Holdings, Inc. has a price-to-book ratio of 14.58x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

DigitalOcean Holdings, Inc. has a price-to-sales ratio of 13.42x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue