DocuSign, Inc. — Software - Application. Scored on the same transparent 7-signal model behind the daily rankings.
★
DOCU
DocuSign, Inc. · Software - Application
FCF$1.1bC+
Rev+8.2%B
D/E0.10B+
P/E30.7xB
PEG0.55A-
78.2Score
$48.76$9.3B
1Y Target$59.33Analyst consensus · 18 analysts
5Y Target$86.86Compound horizon
10Y Target$128.85Long-dated conviction
FCF$1.1bTTMC+
FCF $1.1b — respectable but not differentiating
Rev+8.2%TTM YoYB
Revenue +8.2% — at or above S&P median
D/E0.10B+
D/E 0.10 — below the Technology debt median (≈40th pctile)
P/E30.7xB
P/E 30.7 — near the Technology median (≈60th pctile)
PEG0.55A-
PEG 0.55 — 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 · 78.2
Quality0.83
Growth0.74
Value0.77
Why this score
Buying back stock
Entry · Margin of safety
52-week rangeNear 52-week low
44% off the 12-month high
vs DCF fair value58% belowest. fair value ~$116
Quality signals · context only
Gross profitability65% · Agross profit ÷ total assets (Novy-Marx)
ROIC15.2% · A-return on invested capital — not score-weighted
Why now
DocuSign's strategic pivot to an AI-powered Intelligent Agreement Management (IAM) platform, leveraging its foundational e-signature strength, positions it for sustained compounding growth beyond its core market. A compelling 0.55 PEG ratio signals significant undervaluation relative to its growth prospects, further supported by a robust $1.1b in free cash flow, which provides ample capital for platform development and shareholder returns. The crux of the thesis rests on the successful monetization and widespread adoption of its expanded IAM suite, driving deeper integration into enterprise workflows across the entire agreement lifecycle.
Moat
DocuSign's durable moat is built upon the high switching costs inherent in its ubiquitous e-signature solution, which is deeply embedded in global business processes for sending and signing agreements on various devices. The expansion into Contract Lifecycle Management (CLM) and Document Generation, as part of its IAM platform, further entrenches DocuSign by automating critical workflows and gaining intelligence across the entire agreement process. This comprehensive platform strategy creates a sticky ecosystem that is difficult for competitors to dislodge, ensuring continued customer lock-in and recurring revenue streams.
Risk
Despite the IAM platform's potential, DocuSign's core e-signature market is maturing, reflected in its decelerating 8.2% revenue growth, which struggles to justify its elevated 30.7 P/E TTM multiple. The primary risk lies in the company's ability to effectively cross-sell its newer, more complex offerings like CLM and Document Generation against increasing competition in these broader agreement management categories. A sustained decline in new customer acquisition for the full IAM platform, rather than just e-signatures, would confirm the bear case and undermine the growth narrative.
Horizon
1-3 yr $59.33 (18-analyst consensus) — fundamentals + valuation re-rating. 5 yr $86.86 at ~12% 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.
Position sizing · DOCU
$
%
%
Shares to buy
41
Position size
$1,999
4.0% of portfolio
Stop price
$36.57
25% below $48.76
$ at risk if stopped
$499.79
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.
DocuSign, Inc. (DOCU): score, valuation & FAQ
DocuSign, Inc. (DOCU) is a Software - Application company that scores 78.2 out of 100 on the Bull Rankings quality-growth model — a strong 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 58% below our discounted-cash-flow fair value (a margin of safety).
Is DOCU a good stock to buy?
Bull Rankings scores DOCU 78.2 out of 100 on its quality-growth model, which is a strong 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 78.2 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 $48.76, DOCU sits about 58% below our discounted-cash-flow fair value (a margin of safety). It trades at a 30.7x× P/E (graded B). 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?
Despite the IAM platform's potential, DocuSign's core e-signature market is maturing, reflected in its decelerating 8.2% revenue growth, which struggles to justify its elevated 30.7 P/E TTM multiple. The primary risk lies in the company's ability to effectively cross-sell its newer, more complex offerings like CLM and Document Generation against increasing competition in these broader agreement management categories. A sustained decline in new customer acquisition for the full IAM platform, rather than just e-signatures, would confirm the bear case and undermine the growth narrative.
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 adviser.