DocuSign, Inc. (DOCU), Discounted Cash Flow Valuation

Docusign, Inc. (DOCU) Compañía Profile

US | Technology | Software - Application | NASDAQ
76.39 -1.10 (-1.42%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
15.47B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
2.98B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
1.07B
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
214.51M
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
5.11
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
18.51
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
0.00%
Exchange Name of stock exchange where the trading item trades.
NASDAQ
Avg Volume The average number of shares traded each day over the past 30 days.
2.53M
Open The opening trade price over the trading day.
76.65
Previous Close The last closing price.
77.49
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
1.2
1 day delta The range between the high and low prices over the past day.
75.32-78.63
52 weeks The range between the high and low prices over the past 52 weeks.
48.7-107.86

Total Valuation

DocuSign, Inc. has a market cap or net worth of 15.47B. The enterprise value is 14.94B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
15.47B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
14.94B

Valuation Ratios

The trailing PE ratio is 14.54. DocuSign, Inc.'s PEG ratio is 2.57.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
14.54
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
5.2
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
7.75
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
16.81
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
2.57

Enterprise Valuation

The stock's EV/EBITDA ratio is 40.14, with a EV/FCF ratio of 16.24.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
5.02
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
40.14
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
14.69
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
16.24

Financial Efficiency

Return on equity (ROE) is 60.24% and return on invested capital (ROIC) is 44.84%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
60.24%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
26.61%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
44.84%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.74
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
0

Margins

Trailing 12 months gross margin is 79.03%, with operating and profit margins of 7.69% and 35.87%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
79.03%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
7.69%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
8.33%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
35.87%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
12.51%

Income Statement

In the last 12 months, DocuSign, Inc. had revenue of 2.98B and earned 1.07B in profits. Earnings per share (EPS) was 5.11.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
2.98B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
2.35B
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
229.05M
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
247.94M
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
1.07B
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
372.31M
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
264.51M
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
5.11

Financial Position

The company has a trailing 12 months (ttm) current ratio of 0.81, with a ttm Debt / Equity ratio of 0.06.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
0.81
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
0.81
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0.06
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
1.08

Dividends & Yields

This stock pays an annual dividend of 0, which amounts to a dividend yield of 0.00%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
0
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
0.00%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
6.88%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
5.95%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
0.00%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
0.00%

Balance Sheet

The company has 648.62M in cash and 124.43M in debt, giving a net cash position of 524.2M.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
648.62M
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
124.43M
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
524.2M
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
2B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
9.85
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
-342.65M

Cash Flow

In the last 12 months, operating cash flow of the company was 1.02B and capital expenditures -96.99M, giving a free cash flow of 920.28M.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
1.02B
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-96.99M
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
920.28M
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
4.53

DocuSign, Inc. News

Apr 17, 2025 - seekingalpha.com
DocuSign: Rule Of 40 In Sight And $130 On The Horizon, I'm Long
DocuSign's rule of 40% status, with 6–8% growth and a 33% free cash flow margin, makes it attractive to institutional investors and less volatile. Trading at 12x forward free cash flow, DOCU's valuation is compelling, especially with billings growth set to accelerate for the first time in five years. The company's zero-debt balance sheet and nearly $1 billion in cash reserves provide significant financial flexibility and reduce risk....[read more]
Apr 16, 2025 - seekingalpha.com
DocuSign, Inc. (DOCU) Momentum Investor Session Conference (Transcript)
DocuSign, Inc. (NASDAQ:DOCU ) Momentum Investor Session Conference April 16, 2025 11:30 AM ET Company Participants Matthew Sonefeldt - Head of Investor Relations Allan Thygesen - Chief Executive Officer Paula Hansen - President and Chief Revenue Officer Conference Call Participants Darren Baker - Primecap Management Company Rishi Jaluria - RBC Capital Markets Alex Zukin - Wolfe Research Patrick Walravens - Citizens Capital Markets Peter Burkly - Evercore Operator Please welcome Chief Executive O...[read more]
Apr 16, 2025 - prnewswire.com
Docusign Ushers in a New Era of AI Contract Agents to Transform Business
According to Deloitte, 77% of high-performing organizations cite agreement management as vital to their success SAN FRANCISCO , April 16, 2025 /PRNewswire/ -- Docusign (NASDAQ: DOCU ) today introduced the industry's first purpose-built AI contract agent designed to accelerate workflows, reduce risk, and achieve better outcomes across the entire agreement lifecycle. Instead of contracts sitting in a queue waiting for manual review, Docusign AI contract agents can analyze agreements in seconds, fl...[read more]
Apr 15, 2025 - prnewswire.com
New Docusign Partner Program to Drive Business Success in the Era of Intelligent Agreement Management
Redesigned with specializations and tracks to accelerate partner growth and customer value   SAN FRANCISCO , April 15, 2025 /PRNewswire/ -- Docusign (NASDAQ:  DOCU ) today introduced the new Docusign Partner Program, a bold evolution that supports partners no matter where they are on their journey - from eSignature to CLM and beyond – while accelerating growth and expanding opportunities with Docusign Intelligent Agreement Management (IAM). IAM is the AI-powered platform that underpins all Docus...[read more]
Apr 15, 2025 - seekingalpha.com
DocuSign: Growth Should Start To Accelerate
I am positive on DocuSign due to early signs of growth reacceleration driven by strong IAM platform adoption and enterprise expansion. DOCU's IAM platform, launched in April 2024, is gaining solid traction, contributing significantly to direct sales and expected to drive substantial revenue growth. Enterprise expansion is rebounding, with significant increases in large-deal volume and improved billings growth, indicating a positive momentum shift....[read more]
Apr 14, 2025 - prnewswire.com
Docusign tops Newsweek's list of the Most Trustworthy Software and Telecommunications Companies in America 2025
SAN FRANCISCO , April 14, 2025 /PRNewswire/ -- For the second year in a row, Docusign (DOCU) has been honored as the #1 Most Trustworthy Software and Telecommunications company in Newsweek's list of the Most Trustworthy Companies in America . Docusign, an honoree in 2023, 2024, and 2025 is trusted by nearly 1.7 million global customers to securely and safely manage the mission-critical agreements they need to run their business every day....[read more]
Apr 11, 2025 - zacks.com
Here's Why DocuSign (DOCU) Gained But Lagged the Market Today
In the closing of the recent trading day, DocuSign (DOCU) stood at $74.35, denoting a +1.54% change from the preceding trading day....[read more]
Apr 11, 2025 - zacks.com
DocuSign Stock Appreciates 24% in a Year: What's Driving the Upside?
DocuSign's performance is being driven by significant progress across three pillars of its strategic vision....[read more]
Apr 10, 2025 - zacks.com
Docusign Benefits From eSignature Demand, Low Liquidity Ails
DOCU stock is improving on the back of a subscription-based revenue model and partnerships, allowing it to tap into a larger market....[read more]
Apr 8, 2025 - fool.com
1 Undervalued Growth Stock You Can Buy Now During the Tariff-Induced Nasdaq Bear Market
This company is unlikely to be directly impacted by the worldwide tariffs implemented by President Donald Trump....[read more]

DocuSign, Inc. Details

Country US
City San Francisco
Address 221 Main Street
Ticker Symbol DOCU
Exchange NASDAQ Global Select
IPO Date Apr 27, 2018
CEO Mr. Allan C. Thygesen
Sector Technology
Industry Software - Application
Employees 6.84K

DocuSign, Inc. Company Description

DocuSign, Inc. provides electronic signature software in the United States and internationally. The company provides e-signature solution that enables businesses to digitally prepare, sign, act on, and manage agreements. It also offers CLM, which automates workflows across the entire agreement process; Insights that use artificial intelligence (AI) to search and analyze agreements by legal concepts and clauses; Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce; Negotiate for Salesforce that supports for approvals, document comparisons, and version control; Analyzer, which helps customers understand what they're signing before they sign it; and CLM+ that provide AI-driven contract lifecycle management. The company provides Guided Forms, which enable complex forms to be filled via an interactive and step-by-step process; Click that supports no-signature-required agreements for standard terms and consents; Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Payments that enables customers to collect signatures and payment; Remote Online Notary is a solution using audio-visual and identify verification technologies to enable notarization; and Monitor using advanced analytics to track DocuSign eSignature web, mobile, and API account. It offers industry-specific cloud offerings, including Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally; Rooms for Mortgage, which offers digital workspace to create and close mortgages; FedRAMP, an authorized version of DocuSign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct, partner-assisted, and Web-based sales. It serves enterprise, commercial, and small businesses. The company was incorporated in 2003 and is headquartered in San Francisco, California.

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