DOCU

DOCU

DOCU

Recurring SaaS

★ Quality 20/100
Undervalued

Price today

$54.73

what the market pays

Worth

$69.20

calculated cycle value

Worth $69.20price today $54.73

Price is 21% below its value

charlieapp.co

Price vs Intrinsic Value

VI$38.9$103$168$232$296'21'22'23'24'25'26DOCUVI $69.2 · MdS +27%
UndervaluedDiscountedFair priceIV = current model value

The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.

Where does the value come from?

☁️

Software and subscriptions

$66.32

per share

How it's calculated

💰

Free cash flow per share

normalized free cash flow

$5.06
×
📐

Multiplier

years of discounted cash flows

13.1x
=
🏢

Business value

without cash

$66.32
🏦

Net cash in the bank

cash minus financial debt, per share

+$2.88

Total calculated value

business + cash

$69.20

How many times the cash flow

Recurring SaaS · vs 34 peers

You pay today
10.2x
Sector median
21.5x
Charlie: worth
13.1x

You pay 10.2x times this business's cash flow; its sector median is 21.5x.

28% below what Charlie thinks it's worth (13.1x) — that gap is your safety margin.

Why does Charlie give it 13.1x?

The multiple is how many times its cash flow the business is worth.

An average business of its kind is worth 21.5x. This one drops from there:

↓ down

AI disruption risk. its business could be eroded by AI over the long run.

↑ up

79% margin. it charges almost pure toll; it can raise prices without losing customers.

↑ up

Grows 11% a year. next year's cash flow will be larger than today's.

That's why it's worth 13.1x, less than the 21.5x average.

Why Undervalued?

Its free cash flow is $5.06/share × 13.1x multiplier plus $2.88 in net cash = $69.20 in intrinsic value. Today's price of $54.73 is 27% below that value — there's a real safety margin to enter.

The price is 21% below the calculated value. There's a real safety margin.

The model asks for a discount to absorb estimate errors. That cushion is here.

If the business disappoints a little, the price should hold near $55.36.

At what price would buying make sense?

Entry zones

🟢 Undervalued

$55.36

-20% off Value

🟡 Discounted

$65.74

-5% off Value

🟢 Today

$54.73

+27% Valor

🟢

Undervalued

Today's price offers a real discount to the calculated value. For the long run, this is the kind of entry that builds wealth.

Price is what you pay. Value is what you get.

— Warren Buffett

Model updated · July 2026

The business

DocuSign es el bolígrafo digital del mundo: fácil de usar, fácil de imitar.

DocuSign convirtió la firma manuscrita en un clic. Cobra por suscripción anual: las empresas pagan por usuario y por volumen de documentos firmados. Facturó $3.2B con márgenes brutos del 79% y generó $1.1B de caja libre.

El costo de cambiarse es real: una vez que tus contratos y flujos viven dentro de DocuSign, moverlos duele. Pero firmar un PDF no es física cuántica, y Adobe lo hace igual de bien. El foso existe; profundo no es.

Revenue history

$2.1B
2022
$2.5B
2023
$2.8B
2024
$3.0B
2025
$3.2B
2026
CAGR 5 años: +11%

From $2.1B to $3.2B in 4 years. The business grows steadily.

Where each $100 of sales goes

Revenue $3.2B · FY2026

Cost of sales$663M · 21%
Operations and taxes$2.2B · 70%
Net profit$309M · 10%

Of every $100 in sales, $90 goes to costs and operations; $10 is left as net profit (10% margin).

Catalysts and risks

Adopción de su nueva plataforma de gestión de contratos (IAM), lanzada en 2024.

Recompra de acciones sostenida con la caja libre de $1.1B.

Expansión internacional, hoy menos del 30% de los ingresos.

⚠️

Adobe empaqueta firma electrónica gratis dentro de Acrobat y presiona precios.

⚠️

El crecimiento cayó del auge pandémico a un 11% anual más terrenal.

⚠️

Producto que tiende a volverse commodity: difícil defender precios a largo plazo.

Charlie's note

Una máquina de generar caja con márgenes del 79% y cero deuda. Pero pagar 13 veces por un negocio que crece 11% y no tiene foso profundo es un trato honesto: ni te roban ni te regalan nada.

Analysis · July 2026

So when would be a good price for DOCU?

Today it trades below what we calculate. If you want us to tell you when that changes —or when the value itself moves because the company reported— we will email you.

🔔 Email me

Free · no card

Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.