Complete VRSN Stock Valuation Analysis
Comprehensive intrinsic value analysis using 5 different methodologies
VRSN DCF Analysis
VRSN (VeriSign, Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.4B | $1.5B | $1.6B | $1.6B | $1.7B | $1.8B | $1.9B | $1.9B |
| Revenue Growth % | - | 4.8% | 4.3% | 5.1% | 4.6% | 4.1% | 3.7% | 3.4% |
| EBIT | $943.1M | $1.0B | $1.1B | $654.8M | $685.0M | $713.4M | $740.0M | $764.9M |
| EBIT Margin % | 66.2% | 67.0% | 67.9% | 40.0% | 40.0% | 40.0% | 40.0% | 40.0% |
| Tax Rate % | 23.4% | 16.3% | 23.1% | 12.6% | 13.8% | 15.1% | 16.3% | 17.5% |
| NOPAT | $722.0M | $837.8M | $813.6M | $572.6M | $590.4M | $606.0M | $619.4M | $630.7M |
| NOPAT Margin % | 50.7% | 56.1% | 52.2% | 35.0% | 34.5% | 34.0% | 33.5% | 33.0% |
| Capex | $27.4M | $45.8M | $28.1M | $46.6M | $46.3M | $45.8M | $45.1M | $44.3M |
| Capex / Revenue % | 1.9% | 3.1% | 1.8% | 2.8% | 2.7% | 2.6% | 2.4% | 2.3% |
| Depreciation | $46.9M | $44.1M | $36.9M | $47.0M | $49.2M | $51.2M | $53.1M | $54.9M |
| D&A / Revenue % | 3.3% | 3.0% | 2.4% | 2.9% | 2.9% | 2.9% | 2.9% | 2.9% |
| Change in NWC | $-272.9M | $-122.0M | $-667.1M | $-58.8M | $-49.2M | $-41.0M | $-34.0M | $-28.1M |
| NWC Change / Revenue % | -19.2% | -8.2% | -42.8% | -3.6% | -2.9% | -2.3% | -1.8% | -1.5% |
| Unlevered FCF | $1.0B | $958.1M | $1.5B | $631.8M | $642.5M | $652.4M | $661.5M | $669.5M |
| UFCF % Chg. | - | -5.6% | 55.5% | -57.6% | 1.7% | 1.5% | 1.4% | 1.2% |
| FCF / Revenue % | 71.2% | 64.2% | 95.6% | 38.6% | 37.5% | 36.6% | 35.8% | 35.0% |
| Discount Factor | - | - | - | 0.930 | 0.866 | 0.806 | 0.750 | 0.697 |
| Present Value of FCF | - | - | - | $587.8M | $556.3M | $525.6M | $495.8M | $466.9M |
| Sum of PV of UFCF | - | - | - | $587.8M | $1.1B | $1.7B | $2.2B | $2.6B |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 4.8% |
| Tax Rate | 12.6% |
| After Tax Cost of Debt | 4.2% |
| Risk Free Rate | 4.34% |
| Market Risk Premium | 4.3% |
| Beta | 0.78 |
| Cost of Equity | 7.7% |
| Total Debt | $1.8B |
| Market Cap | $24.8B |
| Total Capital | $26.6B |
| Debt Weighting | 6.8% |
| Equity Weighting | 93.2% |
| WACC | 7.5% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $669.5M |
| Terminal Value | $13.8B |
| PV of Terminal Value | $9.6B |
| Cumulative PV of UFCF | $2.6B |
| Net Debt | $1.6B |
| Equity Value | $10.7B |
| Shares Outstanding | 98.2M |
| Implied Share Price | $109 |
| Current Share Price | $265 |
| Implied Upside/(Downside) | -59.0% |
Valuation Summary
$108.57
Implied Price
$265.04
Current Price
-59.0%
Upside/Downside
7.5%
WACC
VRSN Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 9 peer companies in Technology
P/E Ratio
$262.24
-1.1%
Peer Median: 31.4x
EV/EBITDA
$282.11
+6.4%
Peer Median: 23.1x
P/S Ratio
$107.32
-59.5%
Peer Median: 6.4x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for VRSN's business model and current situation.
Multiple Comparison
| Multiple | VRSN Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | 31.8x | 31.4x | 29.8x | 1.1% | Fair Value |
| EV/EBITDA | 23.1x | 23.1x | 22.2x | 0.0% | Fair Value |
| P/S Ratio | 15.7x | 6.4x | 7.4x | 147.0% | Overvalued |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $73.34B | 0.0x | 0.0x | 20.2x | |
| $49.67B | 0.0x | 122.8x | 25.9x | |
| $69.47B | 0.0x | 799.6x | 39.2x | |
| $23.29B | 31.4x | 31.1x | 5.0x | |
| $24.75B | 31.8x | 23.1x | 15.7x | |
| $16.61B | 621.9x | 276.6x | 6.4x | |
| $19.98B | 0.0x | 94.6x | 4.4x | |
| $19.90B | 0.0x | 0.0x | 9.9x | |
| $11.42B | 26.1x | 12.3x | 2.8x |
VRSN Graham Intrinsic Value
Growth-adjusted intrinsic value with two formula variants
Formula Selection
V = EPS × (8.5 + 2g)
Graham's original P/E shortcut for growth, no interest-rate adjustment
V = [EPS × (8.5 + 2g) × 4.4] / Y
Graham's 1974 refinement: adds rate-environment sensitivity
Active Formula: Base-Growth
8.34 × (8.5 + 2 × 4.5%)
Input Data & Growth Assumptions
Current EPS (TTM)$8.34
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y4.5%
Financial statements
Historical 5Y9.2%
Financial statements
Custom
%
Enter a positive growth rate estimate (0-50%)
Graham Intrinsic Value Result
$146.76
Intrinsic Value
$265.04
Current Price
-44.6%
Upside/Downside
Base Formula
Growth: 4.5%
VRSN Peter Lynch Fair Value
Growth-based valuation using PEG ratio analysis for growth stocks
Fair Value Calculation
EPS (TTM)$8.34
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y4.5%
3-year earnings growth
Historical 5Y9.2%
5-year earnings growth
4.5%
1%50%
Fair Value Formula: EPS × Growth Rate
$8.34 × 4.5% = $37.92
$37.92
Fair Value
$265.04
Current Price
-85.7%
Upside/Downside
PEG Analysis
31.8x
Current P/E
4.5%
Growth Rate
6.99
PEG Ratio (P/E ÷ Growth Rate)
Significantly Overvalued
PEG Ratio Interpretation:
• PEG < 1.0: Undervalued (growth exceeds P/E)
• PEG = 1.0: Fairly valued (ideal Lynch ratio)
• PEG > 1.5: Overvalued (paying premium for growth)
Peter Lynch's Rule:
"The P/E ratio of any company that's fairly priced will equal its growth rate." A stock with 15% growth should trade at a P/E of 15 (PEG = 1.0).
VRSN Earnings Power Value (EPV)
Normalized earnings-based valuation for sustainable earning power assessment
Earnings Normalization
| Earnings Component | Amount ($B) | Description |
|---|---|---|
| Reported Earnings | 0.8 | Base earnings from financial statements |
| Normalized Earnings | 0.8 | Final normalized earning power |
One-time Items: Remove non-recurring gains/losses
Cyclical Adjustment: Normalize for economic cycle position
EPV Result
$91.55
EPV per Share
$265.04
Current Price
-65.5%
Upside/Downside
8.7%
WACC: 8.7% (calculated from market data)
Confidence: High
Normalized earnings approach
EPV Calculation Breakdown
Enterprise Value Calculation
| Normalized Earnings | $0.8B |
| Cost of Capital | 8.7% |
| Enterprise Value | $9.0B |
Per Share Value
| Enterprise Value | $9.0B |
| Shares Outstanding | 0.1B |
| EPV per Share | $91.55 |
WACC Components
| Cost of Equity | 9.1% |
| After-Tax Cost of Debt | 3.5% |
| Equity Weight | 93.5% |
| Debt Weight | 6.5% |
| WACC | 8.7% |