DocuSign Valuation

DOCU Stock  USD 59.27  1.27  2.19%   
At this time, the firm appears to be fairly valued. DocuSign shows a prevailing Real Value of $61.22 per share. The current price of the firm is $59.27. Our model computes the value of DocuSign from reviewing the firm fundamentals such as Current Valuation of 11.01 B, profit margin of 0.03 %, and Operating Margin of 0.01 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book
10.544
Enterprise Value
11 B
Enterprise Value Ebitda
56.2907
Price Sales
4.3138
Forward PE
17.9533
Fairly Valued
Today
59.27
Please note that DocuSign's price fluctuation is very steady at this time. Calculation of the real value of DocuSign is based on 3 months time horizon. Increasing DocuSign's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for DocuSign is useful when determining the fair value of the DocuSign stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of DocuSign. Since DocuSign is currently traded on the exchange, buyers and sellers on that exchange determine the market value of DocuSign Stock. However, DocuSign's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  59.27 Real  61.22 Target  64.42 Hype  59.29 Naive  54.03
The real value of DocuSign Stock, also known as its intrinsic value, is the underlying worth of DocuSign Company, which is reflected in its stock price. It is based on DocuSign's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of DocuSign's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence DocuSign's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
61.22
Real Value
63.70
Upside
Estimating the potential upside or downside of DocuSign helps investors to forecast how DocuSign stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of DocuSign more accurately as focusing exclusively on DocuSign's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.730.790.84
Details
Hype
Prediction
LowEstimatedHigh
56.8159.2961.77
Details
Naive
Forecast
LowNext ValueHigh
51.5554.0356.51
Details
26 Analysts
Consensus
LowTarget PriceHigh
58.6264.4271.51
Details

DocuSign Investments

46.84 Million

DocuSign Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining DocuSign's current stock value. Our valuation model uses many indicators to compare DocuSign value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across DocuSign competition to find correlations between indicators driving DocuSign's intrinsic value. More Info.
DocuSign is one of the top stocks in price to sales category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  2.44  of Price To Book per Price To Sales. Price To Book Ratio is likely to drop to 10.45 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value DocuSign by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for DocuSign's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the DocuSign's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates DocuSign's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in DocuSign and how it compares across the competition.

About DocuSign Valuation

The stock valuation mechanism determines the current worth of DocuSign on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of DocuSign. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of DocuSign based exclusively on its fundamental and basic technical indicators. By analyzing DocuSign's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of DocuSign's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of DocuSign. We calculate exposure to DocuSign's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to DocuSign's related companies.
Last ReportedProjected for 2024
Gross Profit2.2 B1.1 B
Pretax Profit Margin 0.03  0.04 
Operating Profit Margin 0.02  0.02 
Net Profit Margin 0.03  0.03 
Gross Profit Margin 0.79  0.60 

8 Steps to conduct DocuSign's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates DocuSign's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct DocuSign's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain DocuSign's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine DocuSign's revenue streams: Identify DocuSign's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research DocuSign's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish DocuSign's growth potential: Evaluate DocuSign's management, business model, and growth potential.
  • Determine DocuSign's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate DocuSign's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

DocuSign Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as DocuSign does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding204.1 M
Quarterly Earnings Growth Y O Y5.985
Forward Price Earnings17.9533

DocuSign Current Valuation Indicators

Valuation refers to the process of determining the present value of DocuSign and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value DocuSign we look at many different elements of the entity such as DocuSign's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. DocuSign's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final DocuSign's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as DocuSign, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use DocuSign's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes DocuSign's worth.
When determining whether DocuSign is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if DocuSign Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Docusign Stock. Highlighted below are key reports to facilitate an investment decision about Docusign Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DocuSign. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.
For more information on how to buy DocuSign Stock please use our How to Invest in DocuSign guide.
Note that the DocuSign information on this page should be used as a complementary analysis to other DocuSign's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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When running DocuSign's price analysis, check to measure DocuSign's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy DocuSign is operating at the current time. Most of DocuSign's value examination focuses on studying past and present price action to predict the probability of DocuSign's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move DocuSign's price. Additionally, you may evaluate how the addition of DocuSign to your portfolios can decrease your overall portfolio volatility.
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Is DocuSign's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DocuSign. If investors know DocuSign will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DocuSign listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
5.985
Earnings Share
0.36
Revenue Per Share
13.534
Quarterly Revenue Growth
0.08
Return On Assets
0.0131
The market value of DocuSign is measured differently than its book value, which is the value of DocuSign that is recorded on the company's balance sheet. Investors also form their own opinion of DocuSign's value that differs from its market value or its book value, called intrinsic value, which is DocuSign's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DocuSign's market value can be influenced by many factors that don't directly affect DocuSign's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between DocuSign's value and its price as these two are different measures arrived at by different means. Investors typically determine if DocuSign is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DocuSign's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.