DigitalOcean Holdings, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $150M normalized annual FCF base (between FY2024's $104.6M and FY2023's $115.6M, reflecting medium-term normalization of currently elevated AI-infrastructure capex that has compressed TTM FCF to $16.1M); 15% FCF growth years 1-5, 8% years 6-10; 11% discount rate; 3% terminal growth; $1,211M net debt ($767.0M cash less $1,978M total debt); 117.58M shares outstanding.

Reasoning: DigitalOcean's near-term FCF is temporarily depressed by heavy AI-driven capital expenditure, so a normalized FCF base with above-average growth captures its improving revenue trajectory (29% YoY growth guided), while the higher discount rate reflects elevated capital intensity and competitive risk in cloud infrastructure.