DocuSign, Inc. (DOCU) stock analysis
Close on Nov 11, 2026Market cap $14.98BP/E 48.9Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed12 of 30 checks passed
DocuSign passes 12 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 2/6
- Past performance
- 4/6
- Financial health
- 5/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 23.5%, above the 10% that usually covers the cost of capital.
No debt
DocuSign has no borrowings on its latest balance sheet.
Interest well covered
Operating income covers interest expense 170.4 times.
Debt covered by cash flow
There is no debt to cover.
What to watch
Margin of safety under 20%
The price is 27.7% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $80.15 is above our fair value estimate of $62.77.
Return on equity under 15%
Return on equity was 17.8% over the last twelve months and averaged 9.5% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew 8.6% a year over the last three fiscal years, short of the 10% we look for.
Valuation1/6
P/E above its 5-year median
DocuSign's P/E of 48.9 is above its own 5-year median of 35.5.
P/E above the industry
DocuSign's P/E of 48.9 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
DocuSign's EV/EBITDA of 27.5 is below its 5-year median of 52.9.
P/B above the industry
DocuSign's price-to-book of 8.72 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $80.15 is above our fair value estimate of $62.77.
Margin of safety under 20%
The price is 27.7% above fair value, so there is no margin of safety.
Growth2/6
Revenue growing under 10% a year
Revenue grew 8.6% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 8.6% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance raised
DocuSign raised its Year Ended January 31, 2027 Annual recurring revenue year-over-year growth rate outlook on Sep 3, 2026.
Gross margin improving
Gross margin was 79.5% over the last twelve months, against 79.3% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 17.8% over the last twelve months and averaged 9.5% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 23.5%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
DocuSign's return on equity of 17.8% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 9.8% over the last twelve months, against a 5-year average of 8.2%.
Net margin above the industry
DocuSign's net margin of 9.8% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health5/6
No debt
DocuSign has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 170.4 times.
Short-term assets don't cover short-term debts
Current assets are 0.64 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 4.16; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
DocuSign has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$62.77
The share price is 28% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 31.6× | 35.5× | 27.6× | $51.76 | 40% |
| EV/EBITDA | 30.0× | 52.9× | 18.8× | $87.07 | 35% |
| P/B | 6.7× | 10.1× | 3.3× | $61.94 | 10% |
| Earnings power | 14.2% cost of equity | – | – | $35.98 | 15% |
| Fair value | $62.77 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 35.5
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $194.94M
- Value traded per 1% price move
- $102.77M
Downside
High risk
- Typical loss in a bad month
- 29.4%
- Volatility (annualized)
- 48%
- Sharpe ratio, 1 year
- 0.22
- Beta to the S&P 500 (5Y)
- 1.87
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2016 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +8.2% | +8.6% | +17.2% | – | |
| Gross profit | +8.5% | +8.9% | +18.6% | – | |
| Operating income | +49.3% | – | – | – | |
| Net income | -71.1% | – | – | – | |
| EPS, diluted | -70.9% | – | – | – | |
| Free cash flow | +15.0% | +35.1% | +37.6% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | 37.0% | -55.8% | 15.8% | |
| Return on assets | – | -11.5% | 7.5% | |
| Current ratio | – | 1.06 | 0.73 | |
| Interest coverage | -189.6× | -5.6× | 117.3× | |
| Capex to revenue | 11.4% | 5.7% | 3.3% | |
| Diluted shares | 28M | 186M | 209M |
Where the cash went
Fiscal 2022 to 2026, five years combined
DocuSign generated $4.18B from operations and spent $2.20B on capital expenditure, dividends and share buybacks. 20% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 9.6% | 0.78× | 2.10× | 15.8% |
| FY2025 | 35.9% | 0.85× | 2.23× | 68.2% |
| FY2024 | 2.7% | 0.92× | 3.43× | 8.5% |
| FY2023 | -3.9% | 0.91× | 6.22× | -21.8% |
| FY2022 | -3.3% | 0.86× | 8.11× | -23.3% |
| FY2021 | -16.7% | 0.69× | 4.85× | -55.8% |
| FY2020 | -21.4% | 0.56× | 3.02× | -35.9% |
| FY2019 | -60.8% | 0.63× | 8.11× | -309.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$309.09M
- Cash generatingOperating cash flow above zero$1.17B
- Return on assets improvedROA up on the prior year35.9% → 7.7%
- Earnings backed by cashOperating cash flow above net income$1.17B vs $309.09M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose0.81 → 0.73
- No dilutionShare count did not rise210M → 209M
- Gross margin improvedGross margin up on the prior year79.12% → 79.40%
- More efficientAsset turnover rose1.00 → 0.80
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