Discounted Cash Flow Calculation for DB:DS3 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:DS3 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
DocuSign's earnings available for a low price, and how does
this compare to other companies in the same industry?
DocuSign is not considered high growth as it is expected to be loss making for the next 1-3 years.
DocuSign's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
DocuSign's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Daniel D. Springer, also known as Dan, has been Chief Executive Officer, President and Member of the Board of Directors at DocuSign, Inc. since January 2017. Mr. Springer has been an Independent Operating Partner at Advent International Corporation since May 2015 until January 2017. He served as the Chief Executive Officer and Chairman of Responsys, Inc. since March 2004 to March 2014. Mr. Springer served as the Managing Director of San Francisco Office at Modem Media Inc., from April 2002 to February 25, 2004. From 2000 to 2001, he served as the Chief Executive Officer of Telleo, Inc. From December 1997 to September 2000, he served as Chief Marketing Officer and Sales Officer and General Manager for NextCard, a leading issuer of consumer credit on the Internet. Prior to 1997, he held various positions at McKinsey & Co. At Modem Media, he served as the Managing Director of the West Coast region and led the development of the agency's Performance Marketing capability by leveraging database marketing, website analytics and search engine marketing techniques. He started his career as a Consultant at McKinsey & Company and DRI/McGraw-Hill. Mr. Springer has been a Director of E-LOAN, Inc. since July 2004. He has been Director of Ansira, Inc. since May 16, 2017. He has been a Director of iCIMS, Inc. since October 21, 2016. He serves as a Member of Board of Advisors at Topspin Media, Inc. He serves as a Director of eGroups (Yahoo!), ITI and the Randall Museum. He serves as a Director of Indicator Technologies, Inc. He has been a Member of the Advisor of The New Orleans Exchange, Inc. since September 2009. He serves as a Director of AdTech and The San Francisco Friends School. He has been Director of Responsys Pty Ltd since April 2004. He serves as a board member for several software companies in the marketing space such as Heighten and Persado. He served as a Director of YuMe, Inc. since October 2013 until July 27, 2017 and served as its Lead Independent Director since March 2015 until November 2016. He served as Director of Telleo, Inc. He has served as Director of YearUp, The Urban School and Shop.org. He served as a Director of Responsys, Inc. from 2004 to February 6, 2014. He served as Member of Advisory Board at The Receivables Exchange, LLC. Mr. Springer holds a Master of Business Administration from Harvard University from 1989 to 1991 and a Bachelor of Arts in Mathematics and Economics from Occidental College from 1981 to 1985.
Insufficient data for Dan to compare compensation growth.
Dan's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the DocuSign management team is less than 2 years, this suggests a new team.
Chief Operating Officer
Chief Technology & Operations Officer
Chief Financial Officer
Chief Accounting Officer
Vice President of Investor Relations
Head of Communications
Senior Vice President of International Sales
Chief Technology Officer
Senior Vice President of Business Development & Channels
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the DocuSign board of directors is about average.
DocuSign, Inc. provides cloud based software in the United States. The company offers e-signature solution that enables businesses to digitally prepare, execute, and act on agreements. The company sells its products through direct, partner-assisted, and Web-based sales. It serves enterprise businesses, commercial businesses, and small businesses, such as professionals, sole proprietorships and individuals. The company was 2003 and is headquartered in San Francisco, California.
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