DocuSign Revolutionizing How Agreements are Done

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.


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