Verra Mobility Corporation

NasdaqCM:VRRM Stock Report

Market Cap: US$3.9b

Verra Mobility Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 VRRM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VRRM ($23.66) is trading below our estimate of fair value ($51.93)

Significantly Below Fair Value: VRRM is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VRRM. This is calculated by dividing VRRM's market cap by their current earnings.
What is VRRM's PE Ratio?
PE Ratio38.6x
EarningsUS$101.13m
Market CapUS$3.90b

Price to Earnings Ratio vs Peers

How does VRRM's PE Ratio compare to its peers?

The above table shows the PE ratio for VRRM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.6x
MMS Maximus
14.3x2.0%US$4.4b
CNXC Concentrix
13.2x50.9%US$2.6b
EXLS ExlService Holdings
38.3x15.3%US$7.2b
WNS WNS (Holdings)
16.7x16.7%US$2.0b
VRRM Verra Mobility
38.6x23.5%US$3.9b

Price-To-Earnings vs Peers: VRRM is expensive based on its Price-To-Earnings Ratio (38.6x) compared to the peer average (19.4x).

Price to Earnings Ratio vs Industry

How does VRRM's PE Ratio compare vs other companies in the US Professional Services Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CNDT Conduent
1.6x-104.3%US$692.32m
ALJJ ALJ Regional Holdings
0.7xn/aUS$70.26m
VCIG VCI Global
1.9xn/aUS$17.22m
LICN Lichen China
0.9xn/aUS$6.36m
VRRM 38.6xIndustry Avg. 23.8xNo. of Companies10PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VRRM is expensive based on its Price-To-Earnings Ratio (38.6x) compared to the US Professional Services industry average (24x).

Price to Earnings Ratio vs Fair Ratio

What is VRRM'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.

VRRM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.6x
Fair PE Ratio29.3x

Price-To-Earnings vs Fair Ratio: VRRM is expensive based on its Price-To-Earnings Ratio (38.6x) compared to the estimated Fair Price-To-Earnings Ratio (29.3x).

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 VRRM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$23.66
US$29.33
+24.0%
8.5%US$33.00US$25.00n/a6
Dec ’25US$23.66
US$29.33
+24.0%
8.5%US$33.00US$25.00n/a6
Nov ’25US$23.12
US$29.33
+26.9%
8.5%US$33.00US$25.00n/a6
Oct ’25US$27.61
US$30.42
+10.2%
9.4%US$34.50US$26.00n/a6
Sep ’25US$27.61
US$30.42
+10.2%
9.4%US$34.50US$26.00n/a6
Aug ’25US$30.06
US$29.08
-3.2%
13.8%US$34.50US$22.00n/a6
Jul ’25US$26.83
US$26.83
+0.01%
9.0%US$29.00US$22.00n/a6
Jun ’25US$26.64
US$26.83
+0.7%
9.0%US$29.00US$22.00n/a6
May ’25US$23.70
US$25.83
+9.0%
9.6%US$29.00US$21.00n/a6
Apr ’25US$24.48
US$25.83
+5.5%
9.6%US$29.00US$21.00n/a6
Mar ’25US$22.88
US$25.50
+11.5%
9.5%US$29.00US$21.00n/a6
Feb ’25US$24.30
US$24.50
+0.8%
10.5%US$27.00US$19.00n/a6
Jan ’25US$23.03
US$24.50
+6.4%
10.5%US$27.00US$19.00n/a6
Dec ’24US$20.33
US$23.83
+17.2%
9.8%US$26.00US$19.00US$23.666
Nov ’24US$19.79
US$23.67
+19.6%
11.4%US$26.00US$18.00US$23.126
Oct ’24US$18.70
US$23.40
+25.1%
12.3%US$26.00US$18.00US$27.615
Sep ’24US$17.55
US$23.33
+33.0%
11.2%US$26.00US$18.00US$27.616
Aug ’24US$21.07
US$22.33
+6.0%
15.0%US$26.00US$17.00US$30.066
Jul ’24US$19.72
US$20.50
+4.0%
13.7%US$25.00US$17.00US$26.836
Jun ’24US$18.43
US$20.50
+11.2%
13.7%US$25.00US$17.00US$26.646
May ’24US$16.98
US$20.17
+18.8%
14.4%US$25.00US$16.00US$23.706
Apr ’24US$16.92
US$20.17
+19.2%
14.4%US$25.00US$16.00US$24.486
Mar ’24US$16.86
US$19.33
+14.7%
12.6%US$23.00US$16.00US$22.886
Feb ’24US$15.84
US$19.33
+22.1%
12.6%US$23.00US$16.00US$24.306
Jan ’24US$13.83
US$19.33
+39.8%
12.6%US$23.00US$16.00US$23.036
Dec ’23US$15.82
US$19.33
+22.2%
12.6%US$23.00US$16.00US$20.336

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 11:03
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Verra Mobility Corporation is covered by 12 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David KoningBaird
Ryan CaryBofA Global Research
Mark PalmerBTIG