DocuSign, Inc. (DOCU) DCF Valuation
Transparent DCF models put DocuSign, Inc. (DOCU)'s fair value in a range of $73.80 – $82.96 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $45.13 sits below that range — by these conservative assumptions it screens as potentially undervalued.
Reverse DCF: at today's $45.13, the market is pricing in roughly -2.2%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +29.7%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$45.13
Fair-Value Range
$73.80 – $82.96
Market-Implied Growth
-2.2%/yr
vs +29.7% 5Y actual
DOCU DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $823.8M · 0.19B shares · net cash $585.8M
Estimated Fair Value
$73.80
+63.5% vs $45.13
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $45.13; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $90.97 | $95.47 | $101 | $107 | $115 |
| 9.0% | $78.57 | $81.65 | $85.20 | $89.35 | $94.25 |
| 10.0% | $69.12 | $71.31 | $73.80 | $76.64 | $79.91 |
| 11.0% | $61.70 | $63.30 | $65.10 | $67.12 | $69.41 |
| 12.0% | $55.71 | $56.92 | $58.25 | $59.74 | $61.39 |
About DocuSign, Inc.
DocuSign, Inc. is a global provider of electronic signature software, operating both within the United States and internationally. The company's core offering is an e-signature solution that empowers businesses to digitally prepare, execute, finalize, and manage various agreements. Beyond its foundational e-signature service, DocuSign offers an extensive suite of tools for digital agreement management. This includes Contract Lifecycle Management (CLM) to streamline agreement workflows, and Insights, which leverages artificial intelligence to analyze agreements based on legal concepts and clauses. For Salesforce users, there's Gen, enabling sales teams to quickly generate agreements, and Negotiate, providing functionalities like approvals, document comparisons, and version control. Customers can also utilize Analyzer to comprehend documents before signing, and the advanced CLM+ for AI-driven contract lifecycle management. Further enhancing its platform, DocuSign provides Guided Forms for interactive, step-by-step completion of complex documents; Click for managing standard terms and consents that don't require a traditional signature; and Identify, a feature for verifying signer identity using government-issued IDs. It also supports Standards-Based Signatures involving digital certificates, offers Payments for collecting both signatures and financial transactions, and facilitates notarization remotely through its Remote Online Notary solution, which uses audio-visual technology and identity verification. Monitor provides sophisticated analytics for tracking DocuSign eSignature account activity across web, mobile, and API interfaces. DocuSign also caters to specific industries with specialized cloud offerings. These include Rooms for Real Estate, designed to help brokers and agents digitally manage the entirety of real estate transactions; Rooms for Mortgage, a digital workspace for originating and closing mortgages; FedRAMP, a government-authorized version of DocuSign eSignature for U.S. federal agencies; and life sciences modules that ensure compliance with industry-specific electronic signature regulations. The company distributes its products through a combination of direct sales, partner-assisted channels, and Web-based sales, serving a diverse clientele ranging from large enterprises to commercial businesses and small companies. DocuSign, Inc. was established in 2003 and is headquartered in San Francisco, California.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- Allan C. Thygesen