QualityDipStocks / Technology · Software
DocuSign DOCU
Outside our quality screen, so we don’t track its dips. It’s 4% below its 52-week high.
Outside our quality screen, trading well below our fair value estimate, 14% over its Market Value.
- Fair value est.
- $134.39+64%
- Market Value
- $72.06price +14%
- Off 52-wk high
- −4%
- Risk vs market
- Lowbeta 0.42
5 bullish · 4 bearish See why
Key levels
Every level vs today’s $82.17
- 52-wk lowlowest close, 1 year$41.75−49.2%
- Market Valueavg paid since Sep 3$72.06−12.3%
- PriceFri Oct 30 close$82.17you are here
- 52-wk highhighest close, 1 year$85.27+3.8%
- Fair value est.base case$134.39+63.6%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 8.6% ±2 points. Bear = 10.5% and 6.6%; bull = 8.5% and 10.6% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is below even the bear case.
What the price implies To be worth today’s price, DOCU’s free cash flow would need to stay flat for five years; our estimate uses 9%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much DOCU moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 3.8× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.42
- Volatility
- 48% vs 13% SPY
- Correlation SPY
- 0.11
- Correlation QQQ
- 0.06
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur DCF fair value estimate is $134.39, 64% above the price.
Cash returnsShare count down 8.5% in a year: $1.1B of buybacks over 12 months.
ValuationFree-cash-flow yield of 7.6% (price / FCF 13.2×): $1.2B of free cash in the last 12 months.
ProfitabilityOperating margin widened to 9.3% in FY2026 from 1.1% in FY2024 (SEC filings).
Cash returnsFree cash flow grew 28% over the last 12 months vs the 12 months before.
Top bearish points 4 of 5
GrowthDiluted EPS fell 71% to $1.48 in FY2026.
ValuationP/E of 48.1× vs a 33.9× median for the 138 Technology companies we cover.
GrowthSales grew 8.6% a year over the last three fiscal years, below the 11% median for the 162 Technology companies we cover.
ValuationTrades 14.0% above its Market Value of $72.06, the average price paid since the Sep 3 filing.
Who’s talking about it
Notable investors, executives, analysts and public figures on DocuSign in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Software
All fundamentals
P/E 48.1 · FCF yield 7.6% · ROE 18%
Valuation
- P/E
- 48.1×Technology median 33.9×
- Price / FCF
- 13.2×
- FCF yield
- 7.6%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 4.72×
- Price / book
- 9.23×
- Market cap
- $15.9Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $3.4B
- Sales growth, 12 months
- +8.6%vs the 12 months before
- Sales growth, 3 yrs
- +8.6%/yrfrom FY2023
- Diluted EPS, 12 months
- $1.64
- EPS growth, last FY
- −70.9%
- Net income, 12 months
- $330M
- Net income growth
- +17%12 months vs before
Profitability
- Gross margin
- 79.5%
- Operating margin
- 12.0%
- Net margin
- 9.8%
- FCF margin
- 35.7%
- Return on equity
- 18%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $528M
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- n/adebt or equity not tagged in SEC data
- Interest coverage
- 170.4×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $1.2B
- FCF growth, 12 months
- +28%
- Dividend yield
- 0%
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- $1.1B7.0% of market cap
- Share count, 1 year
- −8.5%diluted shares vs a year ago
- Stock-based comp
- $606M
Trailing 12 months to Jul 31, 2026; balance sheet at Jul 31, 2026. From DocuSign’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $134.39 · MV $72.06 · FCF value $177.04
Assumes 8.6% growth for 5 years (revenue grew 8.6% a year FY23–FY26), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $6.21 a share (trailing 12 months to Jul 31, 2026), from the 10-Q filed Sep 4, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 64 · 5 days −3.6%
The business
FCF $1.3B · Sales +9%
- Free cash flow, 12 months$1.3B
- Free-cash-flow yield8.6%
- Free-cash-flow margin39%
- Gross margin80%
- Operating margin13%
- Return on invested capital32%
- Return on equity18%
- Sales growth (latest quarter vs year-ago quarter)+9%
- Net debt / EBITDA−1.4×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
DOCU is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.