Discounted Cash Flow

Digitalocean Holdings, Inc.

DOCN · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2019 $254.8m $-40.4m $-13.6m -15.9% $-1.06
2020 $318.4m (24.9%) $-43.6m (-7.9%) $-40.1m (-194.8%) -13.7% (13.7%) $-1.05 (0.9%)
2021 $428.6m (34.6%) $-19.5m (55.2%) $36.0m (189.9%) -4.6% (66.7%) $-0.21 (80.0%)
2022 $576.3m (34.5%) $-24.3m (-24.5%) $88.8m (146.3%) -4.2% (7.4%) $-0.24 (-14.3%)
2023 $692.9m (20.2%) $19.4m (179.9%) $115.6m (30.3%) 2.8% (166.5%) $0.22 (189.7%)
2024 $780.6m (12.7%) $84.5m (335.3%) $104.6m (-9.6%) 10.8% (286.4%) $0.92 (328.2%)
2025 $901.4m (15.5%) $259.3m (206.8%) $180.5m (72.6%) 28.8% (165.7%) $2.83 (207.4%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model