As time passes, it's easy to forget how many companies saw their valuations skyrocket during the pandemic. Many investors who bought stocks in 2020 and 2021 are still seeing red in their portfolios because of how far ahead of the business fundamentals those stock prices had gotten. In addition, the psychological aspect of knowing a stock is down significantly from its high can make it difficult to see a business clearly in the present and make an investing decision that will ultimately be based on the future.

E-signature company Docusign (NASDAQ: DOCU) is one of these businesses. In 2020, the stock rose by 200% as investors piled into any company that might benefit from the need for social distancing. Certainly, there was high demand for the ability to sign documents electronically in those early days of the pandemic. 2021 was a different year for Docusign -- the stock fell 31%, and today, shares trade nearly 83% below their early 2021 peak. However, that's all in the past. The question for investors now is whether or not Docusign is a smart buy at today's price.

It's worth acknowledging that despite the stock's lackluster performance, Docusign is by far the leader in the e-signature space. According to Deloitte, it has a 75% market share. This is due in part to the company being one of the first to bring an e-signing product to the mass market. It was able to grow its presence before many competitors jumped into the fray.

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Source Fool.com