Based on the provided data and recent analyst reports, here's a concise analysis of DOCS' valuation:
Current Valuation Metrics:
- P/E: 53.26x (Q3 2025)
- EV/EBITDA: 38.92x
- P/S: 19.48x
- P/B: 9.71x
Recent Performance & Catalysts:
The stock has seen significant momentum, surging 36% following strong Q3 results and raised FY25 guidance. The company increased its FY25 revenue guidance to $564.6M-$565.6M from previous $535M-$540M, demonstrating robust growth.
Analyst Consensus:
Recent analyst actions suggest mixed views on valuation:
- Goldman Sachs raised target to $80 but maintains Hold, citing record EBITDA margins of 60.5%
- Mizuho maintains Hold with $65 target (-21.8% downside)
- Wells Fargo remains cautious with $55 target (-30.5% downside)
- Leerink Partners upgraded to Buy with $90 target (+13.7% upside)
Conclusion:
At current levels ($83), DOCS appears overvalued based on traditional metrics and analyst consensus. The stock trades at premium multiples compared to healthcare IT peers, and most analysts suggest limited upside potential from current levels. While the company shows strong operational execution, the valuation appears to have priced in much of the positive momentum.