DocuSign: Rule Of 40 In Sight And $130 On The Horizon, I'm Long

  • DocuSign's rule of 40% status, with 6–8% growth and a 33% free cash flow margin, makes it attractive to institutional investors and less volatile. Trading at 12x forward free cash flow, DOCU's valuation is compelling, especially with billings growth set to accelerate for the first time in five years. The company's zero-debt balance sheet and nearly $1 billion in cash reserves provide significant financial flexibility and reduce risk.