DocuSign Inc. (NASDAQ: DOCU) has been trying to stage a comeback after years of sharp swings. The stock now trades near $68/share, well below its pandemic-era highs. A push toward stronger profitability and disciplined growth has helped stabilize sentiment, but slowing top-line growth and rising competition keep investors cautious.
Recently, DocuSign boosted its stock buyback authorization by $1.0 billion after reporting better-than-expected results, signaling management’s confidence in the business. The company was also recognized as a Leader in IDC’s 2025 assessment for AI-enabled contract lifecycle management, highlighting its push to expand beyond e-signature into broader agreement automation. These moves show DocuSign is not standing still and is actively trying to strengthen both investor returns and its long-term market positioning.
This article explores where Wall Street analysts think DocuSign could trade by 2028. We have pulled together consensus targets, growth forecasts, and valuation models to outline the stock’s possible trajectory. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest DocuSign Is Undervalued
DocuSign trades at about $69/share today. The average analyst price target is $94/share, which points to nearly 36% upside. Forecasts show a wide spread and reflect divided sentiment:
- High estimate: $124/share
- Low estimate: $77/share
- Median target: $90/share
- Ratings: 4 Buys, 3 Outperforms, 15 Holds, 1 Underperform, 1 Sell
Analysts see Docusign as undervalued, with over 30% uspide implied.
But 15 out of 22 analysts still rate the stock a Hold.
That split suggests Wall Street might not be fully convinced on the business, and profitability and growth may need to improve before sentiment turns more bullish.
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DocuSign: Growth Outlook and Valuation
Here’s how analysts expect the business to grow in the next few years:
- Revenue is projected to grow ~7.6% annually through 2028
- Operating margins may expand from ~8% today to ~30%
- Shares trade at ~18x forward earnings, close to SaaS peer averages
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using an 18x forward P/E suggests ~$85/share by 2028
- That implies ~23% upside, or about 9% annualized returns
These numbers suggest DocuSign can compound at a moderate pace, but not at the rapid growth rates of its earlier years. The valuation looks fair relative to expectations, which means the stock is not a deep bargain but also not significantly overpriced. For investors, this points to a setup that could deliver steady, incremental returns, provided management executes well on its margin expansion strategy.
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What’s Driving the Optimism?
DocuSign is making progress in shifting from a pure growth story to a more balanced model focused on profitability. Analysts expect margin expansion to be a key driver of earnings improvement in the coming years.
Digital agreements are also becoming more deeply embedded in business workflows, supporting consistent demand. On top of that, DocuSign generates strong free cash flow and carries minimal debt, which gives it flexibility to reinvest and return capital to shareholders.
These trends help explain why bulls believe DocuSign can keep improving earnings power even with slower revenue growth. For investors, the story is increasingly about stability and cash generation rather than the hypergrowth narrative of the past.
Bear Case: Slowing Growth and Competition
Despite the positives, DocuSign faces real challenges. Growth is slowing compared to its early days, with analysts expecting a much more modest pace going forward. Competition is also intensifying, with Microsoft, Adobe, and other large players bundling e-signature into their broader enterprise platforms.
If rivals capture market share or pricing pressure increases, DocuSign’s momentum could weaken further. Another risk is that margin expansion may not come through as strongly as expected, which would undermine much of the bullish case.
The bear case is that DocuSign becomes a slower-growth utility in digital agreements, profitable but unable to deliver the type of returns investors once expected. For investors, that would mean limited upside and a stock that risks underperforming peers in the broader software space.
Outlook for 2028: What Could DocuSign Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests DocuSign could trade near $85/share by 2028. That would represent about a 23% gain from today’s level, or ~9% annualized returns. The outcome assumes steady revenue growth and significant margin expansion.
While that would mark solid performance, the scenario already builds in a fair amount of optimism. To deliver stronger upside, DocuSign would need to accelerate growth or capture more enterprise customers beyond its current base. Without that, gains are likely to be steady but unspectacular.
For investors, DocuSign looks like a reasonable long-term hold that could provide stability and moderate returns. But the stock is unlikely to deliver outsized gains unless it beats today’s expectations on both growth and profitability.
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