Alessandro Carleo (Bocconi), Max Rosmuller (HSG), Justus Zenneck (HSG), Yash
Sarda (SMU)
Click on the image to read the full report.
Summary
In our brand new report format, we take a deeper look at DocuSign, a San Francisco based organization that allows companies to manage agreements electronically without the need of in-person meetings.
The e-signature pioneer was founded in 2003 and went public 15 years later in 2018. Since then, the stock soared by over 430% and is expected to climb even further in the future. With the Covid-19 pandemic accelerating the already increasing trend towards digital work, a growing industry, as well as DocuSign’s innovative and potentially disruptive product known as the “Agreement Cloud™”, the firm is expected to double its total addressable market from $25 billion to $50 billion.
However, DocuSign’s valuation remains sky-high compared to its direct competitors, which are catching up through market consolidation among other things. With a 38x revenues multiple, DocuSign is currently trading at a premium compared to its competitors such as Box, Dropbox, Wondershare Technology, Adobe, or Salesforce, which trade at a median multiple of 6.5x revenues and a mean multiple of 9x revenues respectively.
Nevertheless, we still think that DocuSign will outperform the market. Read the full report here to find out why.