VeriSign Valuation

Is VRSN * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of VRSN * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VRSN * (MX$3672.5) is trading above our estimate of fair value (MX$3558.47)

Significantly Below Fair Value: VRSN * is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for VRSN *?

Key metric: As VRSN * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for VRSN *. This is calculated by dividing VRSN *'s market cap by their current earnings.
What is VRSN *'s PE Ratio?
PE Ratio20.3x
EarningsUS$858.90m
Market CapUS$17.43b

Price to Earnings Ratio vs Peers

How does VRSN *'s PE Ratio compare to its peers?

The above table shows the PE ratio for VRSN * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average88x
AKAM Akamai Technologies
26x16.5%US$13.2b
GDDY GoDaddy
14.6x-7.5%US$26.7b
WIX Wix.com
131.6x36.4%US$11.8b
DCII DCI Indonesia
180xn/aRp106.8t
VRSN * VeriSign
20.3x2.7%Mex$17.4b

Price-To-Earnings vs Peers: VRSN * is good value based on its Price-To-Earnings Ratio (20.3x) compared to the peer average (94.9x).


Price to Earnings Ratio vs Industry

How does VRSN *'s PE Ratio compare vs other companies in the Global IT Industry?

19 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies91PE01632486480+
19 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VRSN * is good value based on its Price-To-Earnings Ratio (20.3x) compared to the Global IT industry average (23.2x).


Price to Earnings Ratio vs Fair Ratio

What is VRSN *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VRSN * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VRSN *'s Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst VRSN * forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
Mex$4,028.60
0%
3.0%Mex$4,224.17Mex$3,922.44n/a4
Nov ’25Mex$3,672.50
Mex$4,040.10
+10.0%
3.0%Mex$4,236.23Mex$3,933.64n/a4
Oct ’25n/a
Mex$3,769.12
0%
3.7%Mex$4,005.69Mex$3,633.06n/a4
Sep ’25n/a
Mex$3,769.12
0%
3.7%Mex$4,005.69Mex$3,633.06n/a4
Aug ’25n/a
Mex$3,747.77
0%
3.6%Mex$3,965.12Mex$3,596.27n/a4
Jul ’25n/a
Mex$3,780.03
0%
3.0%Mex$3,974.79Mex$3,697.48n/a4
Jun ’25n/a
Mex$3,483.79
0%
3.4%Mex$3,653.73Mex$3,398.82n/a3
May ’25n/a
Mex$3,667.66
0%
7.8%Mex$4,125.47Mex$3,429.32n/a4
Apr ’25Mex$3,142.72
Mex$3,707.16
+18.0%
7.3%Mex$4,001.54Mex$3,326.30n/a4
Mar ’25n/a
Mex$3,812.54
0%
7.4%Mex$4,110.68Mex$3,417.02n/a4
Feb ’25n/a
Mex$3,887.45
0%
6.0%Mex$4,140.41Mex$3,613.83n/a4
Jan ’25n/a
Mex$3,883.33
0%
6.2%Mex$4,126.89Mex$3,602.03n/a4
Dec ’24n/a
Mex$3,925.51
0%
6.7%Mex$4,224.68Mex$3,621.16n/a4
Nov ’24n/a
Mex$4,096.60
0%
6.3%Mex$4,436.09Mex$3,802.37Mex$3,672.504
Oct ’24n/a
Mex$3,910.75
0%
5.3%Mex$4,140.79Mex$3,578.46n/a4
Sep ’24n/a
Mex$3,910.75
0%
5.3%Mex$4,140.79Mex$3,578.46n/a4
Aug ’24n/a
Mex$3,849.23
0%
5.6%Mex$4,053.58Mex$3,503.09n/a4
Jul ’24n/a
Mex$4,414.07
0%
6.0%Mex$4,764.67Mex$4,045.48n/a4
Jun ’24n/a
Mex$4,414.07
0%
6.0%Mex$4,764.67Mex$4,045.48n/a4
May ’24n/a
Mex$4,414.07
0%
6.0%Mex$4,764.67Mex$4,045.48n/a4
Apr ’24n/a
Mex$4,614.62
0%
6.7%Mex$4,944.24Mex$4,197.94Mex$3,142.723
Mar ’24Mex$3,747.85
Mex$4,614.62
+23.1%
6.7%Mex$4,944.24Mex$4,197.94n/a3
Feb ’24Mex$3,600.81
Mex$4,827.20
+34.1%
6.7%Mex$5,235.50Mex$4,445.24n/a3
Jan ’24n/a
Mex$4,827.20
0%
6.7%Mex$5,235.50Mex$4,445.24n/a3
Dec ’23n/a
Mex$4,317.96
0%
2.0%Mex$4,406.09Mex$4,229.84n/a2
Nov ’23n/a
Mex$4,365.11
0%
2.0%Mex$4,454.19Mex$4,276.02n/a2

Analyst Forecast: Target price is less than 20% higher than the current share price.


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