DOCU - Embedded Expectations Analysis - 2020 11 23
DocuSign, Inc. (DOCU:USA) currently trades at historical highs relative to UAFRS-based (Uniform) earnings, with a 373.0 x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about business growth, Agreement Cloud, and transaction volumesSpecifically, management may lack confidence in their ability to maintain international business growth, expand their Agreement Cloud to mid-market and larger customers, and utilize their acquisition deals effectively. In addition, they may be overstating the strength of their momentum heading into Q3 and the potential of Seal AI technology integration. Furthermore, they may have concerns about the complexities of business growth and may lack confidence in their ability to maintain low G&A spend. Finally, they may lack confidence in their ability to sustain transaction volumes and update their guidance range for their net revenue retention
DocuSign provides e-signature solution as the main part of its cloud software suite for automating the agreement process. The company calls its suite the DocuSign Agreement Cloud. The DocuSign Agreement Cloud is designed to allow companies of various sizes and across various industries to make agreement, approval process, or transaction digital, from practically any device, from almost anywhere in the world.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.