DocuSign, Inc. provides cloud based transaction products and services in the United States. The company offers e-signature solution that enables businesses to digitally prepare, execute, and act on agreements. It serves large enterprises, sole proprietorships, small- to medium-sized businesses, professionals, and individuals. The company was 2003 and is headquartered in San Francisco, California.
DOCU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Docusign Inc. To summarize, we found that Docusign Inc ranked in the 9th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for DOCU, they are:
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately only 11.99% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Docusign Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6.69. This coverage rate is greater than that of only 6.59% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Docusign Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Docusign Inc? See EPAY, LORL, AYX, HLIT, and MRVL.