Stock analysis · Bull Rankings model

DOCU analysis

DocuSign, Inc.Software - Application. Scored on the same transparent model behind the daily rankings.

Cloud & SaaS
DOCU
DocuSign, Inc. · Software - Application
FCF$1.1bC+
Rev+8.4%B
D/E0.10B+
P/E40.3xC+
PEG0.73A-
70.1Score
$62.00$11.8B
1Y Target$59.33Analyst consensus · 18 analysts
5Y Target$86.86Compound horizon
10Y Target$128.85Long-dated conviction
FCF$1.1bTTM
C+
FCF $1.1b — respectable but not differentiating
Rev+8.4%TTM YoY
B
Revenue +8.4% — at or above S&P median
D/E0.10
B+
D/E 0.10 — below the Technology debt median (≈40th pctile)
P/E40.3x
C+
P/E 40.3 — above the Technology median (≈75th pctile)
PEG0.73
A-
PEG 0.73 — strong; Lynch's preferred zone

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 70.1
Quality83.4
Growth65.7
Value62.8
Why this score
  • Buying back stock
Entry · Margin of safety
52-week rangeMid-range
28% off the 12-month high
vs DCF fair value48% belowest. fair value ~$119
What the price assumes: free cash flow compounding at ~-7% a year for the next decade — vs the ~13% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability65% · Agross profit ÷ total assets (Novy-Marx)
ROIC15.2% · A-return on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
DocuSign’s AI‑powered Intelligent Agreement Management platform is unlocking deeper automation across the agreement lifecycle, driving a sustainable revenue tailwind that fuels compounding. The business is delivering 8.4% YoY revenue growth, a healthy 9.6% profit margin, and a robust 17.3% ROE while the Bull Rankings model awards a Quality‑growth score of 73.5, with Quality as its strongest pillar, underscoring the franchise’s operational excellence. The only friction is the reverse‑DCF implied -9% FCF growth, which is far below the actual growth trajectory, meaning the market is already pricing in excessive pessimism – the upside rests on that mispricing correcting.
Moat
DocuSign’s moat stems from its end‑to‑end agreement ecosystem—e‑signature, Contract Lifecycle Management, Document Generation, and Identify verification—creating high switching costs for enterprises that have embedded these workflows across legal, sales, and HR functions. The platform’s AI‑driven automation locks in recurring usage and pricing power, reflected in a 17.3% ROE that outperforms peers, while competitors must rebuild deep integrations and compliance certifications to match the same breadth.
Risk
The bear case focuses on the elevated valuation: a forward P/E of 36.9 far exceeds the modest 8.4% revenue growth, and the reverse‑DCF suggests the market is assuming a -9% FCF trajectory, highlighting a disconnect that could widen if growth stalls or margins compress. A slowdown in enterprise spending on digital agreements would push the P/E even higher, and a breach of the -9% implied FCF growth would validate the skeptics. Confirmation would come from a quarterly earnings miss that drives the price back toward the 52‑week low of $40.16.
Horizon
1-3 yr $59.33 (18-analyst consensus) — fundamentals + valuation re-rating. 5 yr $86.86 at ~7% CAGR — compounding case rests on the competitive position widening. 10 yr $128.85 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

DOCU vs the Top Picks average

PillarDOCUBook avgDiff
Quality0.830.84in line
Growth0.660.84-0.18
Value0.630.78-0.15

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-8.2 over 47 daily scores
From 78.3 (Jun 22) → 70.1 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+0.0%
90-day change+0.8%
Forward EPS estimate$5.10

Over the last 90 days, what analysts expect DOCU to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
32
Position size
$1,984
4.0% of portfolio
Stop price
$46.50
25% below $62.00
$ at risk if stopped
$496.00
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Latest DOCU developments

Recent headlines from across the financial press · updated daily. Links open the source.

DocuSign, Inc. (DOCU): score, valuation & FAQ

DocuSign, Inc. (DOCU) is a Software - Application company that scores 70.1 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are PEG (A-) and D/E (B+). On valuation, DOCU sits about 48% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -7% annual free-cash-flow growth over the next decade.

Is DOCU a good stock to buy?

Bull Rankings scores DOCU 70.1 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by PEG (A-) and D/E (B+). A score is a quantitative screen of DocuSign, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does DOCU score 70.1 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). DOCU earns its highest marks on PEG (A-) and D/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is DOCU overvalued or undervalued?

Based on $62.00, DOCU sits about 48% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -7% annual free-cash-flow growth over the next decade. It trades at a 40.3x P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in DOCU?

The bear case focuses on the elevated valuation: a forward P/E of 36.9 far exceeds the modest 8.4% revenue growth, and the reverse‑DCF suggests the market is assuming a -9% FCF trajectory, highlighting a disconnect that could widen if growth stalls or margins compress. A slowdown in enterprise spending on digital agreements would push the P/E even higher, and a breach of the -9% implied FCF growth would validate the skeptics. Confirmation would come from a quarterly earnings miss that drives the price back toward the 52‑week low of $40.16.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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