Based on the provided data and recent analyst reports, here's a concise analysis of DOCU's valuation:
Valuation Analysis
DOCU's current valuation metrics show mixed signals with a forward P/E of 14.39 and EV/EBITDA of 45.90 in the latest quarter, indicating the stock is relatively expensive compared to the software industry average.
Analyst Consensus
Recent analyst coverage shows a balanced view with mixed ratings:
- 3 Strong Buy
- 3 Buy
- 5 Hold
- 2 Sell
- Average price target: $99.69
- High target: $124.00
- Low target: $70.00
Growth & Margins
The company demonstrates solid financial health with:
- Revenue growth rate: 7.77%
- Net margin: 8.27%
- ROE: 3.16%
- ROA: 1.66%
- Low debt-to-equity ratio: 0.07
Recent Developments
Adobe's introduction of AI-powered contract capabilities could pose competitive pressure on DOCU's core business. However, DOCU maintains strong market position with significant options trading activity indicating market interest.
Conclusion
At current price levels, DOCU appears slightly overvalued considering its moderate growth rate and competitive pressures, despite having healthy margins and low debt. The mixed analyst ratings and wide price target range suggest uncertainty about the company's near-term prospects.