A Business at a Glance
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DOCUSIGN, INC.
DOCU
$10.5B
Mkt Cap
$50.44
+7.23%
DOCUSIGN, INC. (DOCU) has a current P/E ratio of 35.3, compared to its historical median P/E of 19.2. The stock is currently considered Expensive based on its historical valuation range.
DOCUSIGN, INC. (DOCU) has a 5-year average return on invested capital (ROIC) of 15.3%. This indicates strong capital allocation and a potential competitive advantage.
DOCUSIGN, INC. (DOCU) has a market capitalization of $9.7B. It is classified as a mid-cap stock.
DOCUSIGN, INC. (DOCU) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 10.30%.
Based on historical P/E analysis, DOCUSIGN, INC. (DOCU) appears expensive. The current P/E of 35.3 is 83% above its historical median of 19.2. The estimated fair value CAGR (P/E method) is 125.4%.
DOCUSIGN, INC. (DOCU) operates in the Services-Prepackaged Software industry, within the Technology sector.
DOCUSIGN, INC. (DOCU) reported annual revenue of $3.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
DocuSign provides an Intelligent Agreement Management (IAM) platform and eSignature solutions that enable organizations to create, commit, and manage agreements digitally. The company's core business model is subscription-based, with subscriptions accounting for 97% of revenue, complemented by professional services and on-premises solutions. DocuSign serves a diverse customer base spanning virtually all industries and geographies—nearly 1.7 million customers including over 260,000 enterprise and commercial customers as well as very small businesses—with no single customer exceeding 10% of revenue. The company generates revenue through tiered subscription pricing based on functionality and usage (historically measured in digital "Envelopes"), with customers ranging from self-serve very small businesses to large enterprises with multi-year contracts paid annually in advance. DocuSign's competitive moat rests on its industry-leading eSignature product, AI-powered agreement repository (Navigator), no-code workflow builder (Maestro), and over 1,000 active partner integrations that embed its solutions directly into customers' existing applications. The company has expanded its addressable market by transitioning from a single-product eSignature vendor to a platform company, introducing user-based subscription pricing for the IAM platform in specific segments and geographies, and developing specialized packages for different user personas and departments.
【IAM-driven acceleration ahead】 Management expects fiscal 2027 to deliver accelerating annual recurring revenue (ARR) growth driven primarily by gross new bookings from both new and expanding IAM customers, combined with continued gross retention improvements and modest dollar net retention gains. The company is scaling IAM upmarket by introducing a top-down C-suite-focused sales motion and launching consumption-based subscription pricing, while expanding IAM's surface area through new functional SKUs for HR and procurement and richer agentic tools for legal teams. Operating margins are expected to remain at similar levels to fiscal 2026 as the company reinvests go-to-market efficiencies into increased R&D investment to accelerate its product roadmap, while maintaining strong free cash flow generation to support an expanded $2.6 billion repurchase program. Management remains focused on balancing disciplined expense management with innovation investment, with particular emphasis on improving customer experience and driving IAM adoption into the installed base to unlock long-term growth.
| Metric | Target | Period |
|---|---|---|
| ARR | 8.25%-8.75% year-over-year growth, or 8.5% at midpoint to over $3.5 billion | FY2027 (ending January 31, 2027) |
| IAM ARR | approximately 18% of total ARR, driving IAM to over $600 million in ARR | FY2027 (ending January 31, 2027) |
| Revenue | $865 million-$869 million in Q2, or 8% year-over-year increase at midpoint; $3.490 billion-$3.502 billion for fiscal 2027, or 9% year-over-year increase at midpoint | Q2 FY2027 and FY2027 (ending January 31, 2027) |
| Non-GAAP Gross Margin | 81.5%-81.7% for Q2; 81.5%-82.0% for fiscal 2027 | Q2 FY2027 and FY2027 (ending January 31, 2027) |
| Non-GAAP Operating Margin | 29.7%-30.2% for Q2; 30.5%-31.0% for fiscal 2027 | Q2 FY2027 and FY2027 (ending January 31, 2027) |
| Non-GAAP Fully Diluted Weighted Average Shares Outstanding | 191 million-196 million for Q2; 190 million-195 million for fiscal 2027 | Q2 FY2027 and FY2027 (ending January 31, 2027) |
ARR (FY2027 (ending January 31, 2027)): “We continue to expect that our year-over-year growth rate range will be 8.25%-8.75%, or an 8.5% year-over-year increase to over $3.5 billion at the midpoint at the end of Q4 of fiscal 2027.”
IAM ARR (FY2027 (ending January 31, 2027)): “We continue to expect IAM to represent approximately 18% of our total ARR at the end of Q4 of fiscal 2027, driving IAM to over $600 million in ARR by the end of this year.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 3.3B | 3.2B | 3.0B | 2.8B | 2.5B | 2.1B |
| Net Income | 315M | 309M | 1.1B | 74M | -97M | -70M |
| EPS | $1.59 | $1.48 | $5.08 | $0.36 | $-0.49 | $-0.36 |
| Free Cash Flow | 1.1B | 1.1B | 920M | 887M | 429M | 445M |
| ROIC | 24.0% | 19.9% | 68.2% | 7.5% | -12.1% | -7.0% |
| Gross Margin | 79.4% | 79.4% | 79.1% | 79.3% | 78.7% | 77.9% |
| Debt/Equity | 0.00 | 1.21 | 1.00 | 0.00 | 1.17 | 2.61 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 350M | 299M | 200M | 32M | -88M | -62M |
| Operating Margin | 10.6% | 9.3% | 6.7% | 1.1% | -3.5% | -2.9% |
| ROE | 17.3% | 15.8% | 68.2% | 8.5% | -21.8% | -23.3% |
| Shares Outstanding | 193M | 209M | 210M | 206M | 199M | 194M |
| Metric | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||
| Revenue | 381M | 519M | 701M | 974M | 1.5B | 2.1B | 2.5B | 2.8B | 3.0B | 3.2B | 3.3B |
| Gross Margin | 73.1% | 77.2% | 72.5% | 75.0% | 74.9% | 77.9% | 78.7% | 79.3% | 79.1% | 79.4% | 79.4% |
| R&D | 90M | 92M | 186M | 186M | 272M | 393M | 481M | 539M | 588M | 665M | 665M |
| SG&A | 64M | 82M | 209M | 147M | 193M | 233M | 316M | 420M | 376M | 389M | 391M |
| EBIT | -116M | -52M | -426M | -194M | -174M | -62M | -88M | 32M | 200M | 299M | 350M |
| Op. Margin | -30.4% | -10.0% | -60.8% | -19.9% | -12.0% | -2.9% | -3.5% | 1.1% | 6.7% | 9.3% | 10.6% |
| Net Income | -117M | -54M | -427M | -208M | -243M | -70M | -97M | 74M | 1.1B | 309M | 315M |
| Net Margin | -30.6% | -10.4% | -60.9% | -21.4% | -16.7% | -3.3% | -3.9% | 2.7% | 35.9% | 9.6% | 9.6% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 28M | 30M | 30M | 0 | 0 |
| Returns on Capital | |||||||||||
| ROIC | N/A | -8.3% | -119.4% | -20.2% | -24.0% | -7.0% | -12.1% | 7.5% | 68.2% | 19.9% | 24.0% |
| ROE | 37.5% | 15.7% | -309.6% | -35.9% | -55.8% | -23.3% | -21.8% | 8.5% | 68.2% | 15.8% | 17.3% |
| ROA | N/A | -17.1% | -38.2% | -11.9% | -11.5% | -2.9% | -3.5% | 2.5% | 30.6% | 7.5% | 7.9% |
| Cash Flow | |||||||||||
| Op. Cash Flow | -4.8M | 55M | 76M | 116M | 297M | 506M | 507M | 980M | 1.0B | 1.2B | 1.2B |
| Free Cash Flow | -48M | 36M | 46M | 44M | 215M | 445M | 429M | 887M | 920M | 1.1B | 1.1B |
| Owner Earnings | -69M | -6.5M | -177M | -101M | -152M | 35M | -118M | 268M | 694M | 776M | 870M |
| CapEx | 43M | 19M | 30M | 72M | 82M | 61M | 78M | 92M | 97M | 106M | 115M |
| Maint. CapEx | 28M | 32M | 38M | 50M | 71M | 82M | 86M | 95M | 108M | 116M | 118M |
| Growth CapEx | 15M | 0 | 0 | 22M | 11M | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 28M | 32M | 38M | 50M | 71M | 82M | 86M | 95M | 108M | 116M | 118M |
| CapEx/OCF | N/A | N/A | 40.0% | 62.3% | 27.7% | 12.1% | 15.3% | 9.4% | 9.5% | N/A | 9.3% |
| Capital Allocation | |||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 85K | 0 | 0 | 0 | 0 | 0 | 63M | 146M | 684M | 869M | 1.0B |
| Buyback Yield | 0.0% | N/A | N/A | N/A | N/A | N/A | 0.5% | 1.1% | 3.3% | 0.0% | 10.3% |
| Stock-Based Comp | 35M | 30M | 215M | 167M | 378M | 389M | 539M | 617M | 216M | 273M | 247M |
| Debt Repayment | 0 | 0 | 0 | 0 | 384M | 78M | 16K | 727M | 0 | 3.1M | 3.1M |
| Balance Sheet | |||||||||||
| Net Debt | N/A | -257M | -931M | -596M | -437M | -293M | -638M | -797M | N/A | N/A | -645M |
| Cash & Equiv. | 191M | 257M | 518M | 241M | 566M | 509M | 722M | 797M | 649M | 602M | 645M |
| Long-Term Debt | N/A | 0 | 439M | 465M | 693M | 718M | 0 | N/A | N/A | N/A | N/A |
| Debt/Equity | N/A | 0.00 | 0.71 | 0.85 | 2.19 | 2.61 | 1.17 | 0.00 | 1.00 | 1.21 | 0.00 |
| Interest Coverage | -189.6 | -82.8 | -39.3 | -6.6 | -5.6 | -9.6 | -13.8 | 4.6 | 129.0 | 117.3 | 133.5 |
| Equity | -347M | -339M | 614M | 546M | 326M | 276M | 617M | 1.1B | 2.0B | 1.9B | 1.8B |
| Total Assets | N/A | 620M | 1.6B | 1.9B | 2.3B | 2.5B | 3.0B | 3.0B | 4.0B | 4.2B | 4.0B |
| Total Liabilities | N/A | 411M | 1.0B | 1.3B | 2.0B | 2.3B | 2.4B | 1.8B | 2.0B | 2.3B | 2.2B |
| Intangibles | N/A | 14M | 74M | 57M | 122M | 99M | 70M | 51M | 76M | 61M | 57M |
| Retained Earnings | N/A | -502M | -929M | -1.1B | -1.4B | -1.4B | -1.6B | -1.7B | -1.3B | -1.9B | -2.1B |
| Working Capital | N/A | 45M | 468M | 250M | 69M | -52M | -577M | -93M | -343M | -549M | -633M |
| Current Assets | N/A | 419M | 985M | 944M | 1.2B | 1.3B | 1.6B | 1.6B | 1.5B | 1.5B | 1.3B |
| Current Liabilities | N/A | 374M | 516M | 694M | 1.1B | 1.4B | 2.2B | 1.7B | 1.8B | 2.0B | 1.9B |
| Per Share Data | |||||||||||
| EPS | -4.17 | -1.66 | -3.16 | -1.18 | -1.31 | -0.36 | -0.49 | 0.36 | 5.08 | 1.48 | 1.59 |
| Owner EPS | -2.45 | -0.20 | -1.31 | -0.57 | -0.82 | 0.18 | -0.59 | 1.30 | 3.30 | 3.72 | 4.51 |
| Book Value | -12.39 | -10.46 | 4.55 | 3.09 | 1.75 | 1.42 | 3.10 | 5.50 | 9.53 | 9.18 | 9.43 |
| Cash Flow/Share | -0.17 | 1.70 | 0.56 | 0.66 | 1.60 | 2.61 | 2.55 | 4.77 | 4.84 | 5.58 | 2.24 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 28.0M | 32.4M | 135.1M | 176.6M | 185.7M | 194.4M | 198.9M | 205.5M | 210.2M | 208.8M | 193.1M |
| Valuation | |||||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 174.0 | 19.2 | N/A | 31.7 |
| P/FCF | N/A | N/A | 144.4 | 303.1 | 202.6 | 51.2 | 27.5 | 14.5 | 22.3 | N/A | 8.7 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 26.0 |
| Price/Book | N/A | N/A | 10.7 | 24.2 | 133.5 | 82.8 | 19.1 | 11.4 | 10.3 | N/A | 5.4 |
| Price/Sales | N/A | N/A | 9.5 | 10.6 | 22.0 | 21.6 | 5.6 | 3.9 | 4.5 | N/A | 3.0 |
| FCF Yield | N/A | N/A | 0.7% | 0.3% | 0.5% | 2.0% | 3.6% | 6.9% | 4.5% | N/A | 11.5% |
| Market Cap | 0 | N/A | 6.6B | 13.2B | 43.5B | 22.8B | 11.8B | 12.9B | 20.5B | 0 | 9.7B |
| Avg. Price | 0.00 | N/A | 49.13 | 58.58 | 172.43 | 234.69 | 71.21 | 52.01 | 64.41 | 0.00 | 50.44 |
| Year-End Price | 0.00 | N/A | 48.82 | 74.93 | 234.14 | 117.29 | 59.25 | 62.63 | 97.70 | 0.00 | 50.44 |
DOCUSIGN, INC. passes 4 of 9 quality checks, suggesting mixed fundamentals.
DOCUSIGN, INC. trades at 35.3x trailing earnings, compared to its 15-year median P/E of 19.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 10.2x vs a median of 24.9x. The company's 5-year average ROIC is 15.3% with a gross margin of 78.9%. Total shareholder yield (buybacks) is 10.3%. At current prices, the estimated annualized return to fair value is +52.3%.
DOCUSIGN, INC. (DOCU) has a net profit margin of 9.6%. This is a modest margin.
DOCUSIGN, INC. (DOCU) generated $1.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
DOCUSIGN, INC. (DOCU) has a debt-to-equity ratio of 1.21. This indicates moderate leverage.
DOCUSIGN, INC. (DOCU) reported earnings per share (EPS) of $1.48 in its most recent fiscal year.
DOCUSIGN, INC. (DOCU) has a return on equity (ROE) of 15.8%. This indicates the company generates strong returns for shareholders.
DOCUSIGN, INC. (DOCU) has a 5-year average gross margin of 78.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 10 years of financial data for DOCUSIGN, INC. (DOCU), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
DOCUSIGN, INC. (DOCU) has a book value per share of $9.18, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects fiscal 2027 to deliver accelerating annual recurring revenue (ARR) growth driven primarily by gross new bookings from both new and expanding IAM customers, combined with continued gross retention improvements and modest dollar net retention gains. The company is scaling IAM upmarket by introducing a top-down C-suite-focused sales motion and launching consumption-based subscription pricing, while expanding IAM's surface area through new functional SKUs for HR and procurement and richer agentic tools for legal teams. Operating margins are expected to remain at similar levels to fiscal 2026 as the company reinvests go-to-market efficiencies into increased R&D investment to accelerate its product roadmap, while maintaining strong free cash flow generation to support an expanded $2.6 billion repurchase program. Management remains focused on balancing disciplined expense management with innovation investment, with particular emphasis on improving customer experience and driving IAM adoption into the installed base to unlock long-term growth.
Based on recent SEC filings and earnings calls, DOCUSIGN, INC. (DOCU) has provided the following forward guidance: ARR: 8.25%-8.75% year-over-year growth, or 8.5% at midpoint to over $3.5 billion (FY2027 (ending January 31, 2027)); IAM ARR: approximately 18% of total ARR, driving IAM to over $600 million in ARR (FY2027 (ending January 31, 2027)); Revenue: $865 million-$869 million in Q2, or 8% year-over-year increase at midpoint; $3.490 billion-$3.502 billion for fiscal 2027, or 9% year-over-year increase at midpoint (Q2 FY2027 and FY2027 (ending January 31, 2027)); Non-GAAP Gross Margin: 81.5%-81.7% for Q2; 81.5%-82.0% for fiscal 2027 (Q2 FY2027 and FY2027 (ending January 31, 2027)); Non-GAAP Operating Margin: 29.7%-30.2% for Q2; 30.5%-31.0% for fiscal 2027 (Q2 FY2027 and FY2027 (ending January 31, 2027)), plus 1 additional metric.
Revenue (Q2 FY2027 and FY2027 (ending January 31, 2027)): “For revenue, we expect $865 million-$869 million in Q2, or an 8% year-over-year increase at the midpoint, and $3.490 billion-$3.502 billion for fiscal 2027, or a 9% year-over-year increase at the midpoint.”
Non-GAAP Gross Margin (Q2 FY2027 and FY2027 (ending January 31, 2027)): “We expect non-GAAP gross margin to be between 81.5%-81.7% for Q2, and continue to expect a range between 81.5%-82.0% for fiscal 2027.”
Non-GAAP Operating Margin (Q2 FY2027 and FY2027 (ending January 31, 2027)): “We expect non-GAAP operating margin to reach 29.7%-30.2% for Q2 and 30.5%-31.0% for fiscal 2027, an increase of 0.5% at the midpoint versus prior guidance.”
Non-GAAP Fully Diluted Weighted Average Shares Outstanding (Q2 FY2027 and FY2027 (ending January 31, 2027)): “We expect non-GAAP fully diluted weighted average shares outstanding of 191 million-196 million for Q2 and 190 million-195 million for fiscal 2027, a meaningful reduction from the prior year, as we expect that our buyback activity will be an important driver to more than offsetting dilution.”