DOCU - Embedded Expectations Analysis - 2021 11 05
DocuSign, Inc. (DOCU) currently trades at a substantial premium to Uniform assets, with a 44.7x Uniform P/B (V/A').At these levels, markets are pricing in expectations for a positive inflection in Uniform ROA, accompanied by 9% Uniform asset growth.
That said, if analyst expectations for 8% Uniform ROA and 24% asset growth were to hold true in perpetuity, and the firm were to see no further improvements, there is potential for significant downside for the name.
Moreover, the firm's most recent earnings call suggests management may have concerns about product adoption, international sales, and their product suite.
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.
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