Docusign, Inc.

DOCU

Services-Prepackaged Software

Mkt Cap

$11.78B

PE

159.19

Debt

Cash

$801.5M

EV

$10.98B

FCF

$887.1M

Market Cap

$11.78B

P/E Ratio

159.19

Debt

Cash

$801.5M

EV

$10.98B

FCF

$887.1M

Charts data: {"Earnings":[{"time":"2017-01-30","value":-116868000},{"time":"2018-01-30","value":-53737000},{"time":"2019-01-30","value":-426811000},{"time":"2020-01-30","value":-208359000},{"time":"2021-01-30","value":-243267000},{"time":"2022-01-30","value":-69976000},{"time":"2023-01-30","value":-97454000},{"time":"2024-01-30","value":73980000}],"Sales":[{"time":"2017-01-30","value":381459000},{"time":"2018-01-30","value":518504000},{"time":"2019-01-30","value":700969000},{"time":"2020-01-30","value":973971000},{"time":"2021-01-30","value":1453047000},{"time":"2022-01-30","value":2107213000},{"time":"2023-01-30","value":2515915000},{"time":"2024-01-30","value":2761882000}],"Net Margins":[{"time":"2017-01-30","value":-0.3063710647802254},{"time":"2018-01-30","value":-0.10363854473639547},{"time":"2019-01-30","value":-0.6088871262495203},{"time":"2020-01-30","value":-0.2139273140576054},{"time":"2021-01-30","value":-0.1674185349820068},{"time":"2022-01-30","value":-0.033207843725337687},{"time":"2023-01-30","value":-0.03873501290782876},{"time":"2024-01-30","value":0.026786082823234303}],"Assets":[{"time":"2018-01-30","value":619973000},{"time":"2019-01-30","value":1615417000},{"time":"2020-01-30","value":1891138000},{"time":"2021-01-30","value":2336507000},{"time":"2022-01-30","value":2541265000},{"time":"2023-01-30","value":3012720000},{"time":"2024-01-30","value":2971290000}],"Stockholders Equity":[{"time":"2017-01-30","value":-347355000},{"time":"2018-01-30","value":-338648000},{"time":"2019-01-30","value":614362000},{"time":"2020-01-30","value":546327000},{"time":"2021-01-30","value":325737000},{"time":"2022-01-30","value":275503000},{"time":"2023-01-30","value":617287000},{"time":"2024-01-30","value":1129739000}],"ROE":[{"time":"2017-01-30","value":0.3364511810683595},{"time":"2018-01-30","value":0.15868099029080343},{"time":"2019-01-30","value":-0.6947223298315977},{"time":"2020-01-30","value":-0.3813814803222246},{"time":"2021-01-30","value":-0.74682028753258},{"time":"2022-01-30","value":-0.2539936044253602},{"time":"2023-01-30","value":-0.15787470009898152},{"time":"2024-01-30","value":0.06548415164918622}],"ROA":[{"time":"2018-01-30","value":-0.07926474217425597},{"time":"2019-01-30","value":-0.2639089473491984},{"time":"2020-01-30","value":-0.10232410326480669},{"time":"2021-01-30","value":-0.07440808009562994},{"time":"2022-01-30","value":-0.024351651638062147},{"time":"2023-01-30","value":-0.02921977482142383},{"time":"2024-01-30","value":0.03152805683726597}]}

DocuSign, Inc. provides electronic signature solution in the United States and internationally. The company provides DocuSign e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce. It also provides Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; and Monitor that uses advanced analytics to track DocuSign eSignature web, mobile, and API account. In addition, the company offers Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally; DocuSign Federal and DocuSign CLM are 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 and partner-assisted sales, and web-based self-service purchasing. The company was incorporated in 2003 and is headquartered in San Francisco, California.

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DCF

Discounted Cash Flow Valuation of Docusign, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$887.1M	$1.153B	$1.467B	$1.826B	$2.221B	$2.641B	$3.067B	$3.475B	$3.842B	$4.141B	$4.348B	$43.48B
DCF		$1.003B	$1.109B	$1.201B	$1.27B	$1.313B	$1.326B	$1.307B	$1.256B	$1.177B	$1.075B	$10.75B
Value	$22.78B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 320%

Earnings Stability -28%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	01-2017	01-2018	01-2019	01-2020	01-2021	01-2022	01-2023	01-2024	TTM
Net Margin	-31%	-10%	-61%	-21%	-17%	-3.3%	-3.9%	2.7%	2.7%
ROA	-	-7.9%	-26%	-10%	-7.4%	-2.4%	-2.9%	3.2%	3.2%
ROE	34%	16%	-69%	-38%	-75%	-25%	-16%	6.5%	6.5%

What is the average Net Margin?

The average Net Margin over the past 5 years is -17.26%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +10.97%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -7.71%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +4.99%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -36.16%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +14.18%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

Data are missing

Years	01-2017	01-2018	01-2019	01-2020	01-2021	01-2022	01-2023	01-2024	TTM
Debt FCF	-	0.00	9.61	10.66	3.33	1.61	1.68	0.00	0.00
Debt Equity	-	0.00	0.71	0.85	2.19	2.61	1.17	0.00	0.00
MIN
Graham Stability	-	-	-	-	-	-	-	-	-

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.00.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -2.19.

What is the Graham’s Stability?

Graham’s Stability measure stands at -.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	01-2017	01-2019	01-2021	01-2023	Trend
Revenue	33%	32%	24%	9.8%	-3.7%
Net Income	-	-	-	-	-
Stockholders Equity	-	13%	51%	83%	35%
FCF	-	81%	61%	110%	3.4%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +31.55%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -3.71%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +12.96%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +35.26%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +80.99%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +3.39%.