Verra Mobility Corporation

NasdaqCM:VRRM Stock Report

Market Cap: US$4.2b

Verra Mobility Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 ($25.16) is trading below our estimate of fair value ($27.49)

Significantly Below Fair Value: VRRM is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

VRRM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.3x
Enterprise Value/EBITDA15.1x
PEG Ratio2.1x

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 Average20.2x
CNXC Concentrix
15.9x29.2%US$4.3b
EXLS ExlService Holdings
28.1x12.3%US$5.2b
MMS Maximus
27.4x26.6%US$5.1b
G Genpact
9.4x-4.6%US$5.9b
VRRM Verra Mobility
73.3x35.0%US$4.2b

Price-To-Earnings vs Peers: VRRM is expensive based on its Price-To-Earnings Ratio (73.3x) compared to the peer average (20.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a18.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a18.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: VRRM is expensive based on its Price-To-Earnings Ratio (73.3x) compared to the US Professional Services industry average (26.4x).


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 Ratio73.3x
Fair PE Ratio35.7x

Price-To-Earnings vs Fair Ratio: VRRM is expensive based on its Price-To-Earnings Ratio (73.3x) compared to the estimated Fair Price-To-Earnings Ratio (35.7x).


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$25.16
US$25.83
+2.7%
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$19.00n/a6
Nov ’24US$19.79
US$23.67
+19.6%
11.4%US$26.00US$18.00n/a6
Oct ’24US$18.70
US$23.40
+25.1%
12.3%US$26.00US$18.00n/a5
Sep ’24US$17.55
US$23.33
+33.0%
11.2%US$26.00US$18.00n/a6
Aug ’24US$21.07
US$22.33
+6.0%
15.0%US$26.00US$17.00n/a6
Jul ’24US$19.72
US$20.50
+4.0%
13.7%US$25.00US$17.00n/a6
Jun ’24US$18.43
US$20.50
+11.2%
13.7%US$25.00US$17.00n/a6
May ’24US$16.98
US$20.17
+18.8%
14.4%US$25.00US$16.00n/a6
Apr ’24US$16.92
US$20.17
+19.2%
14.4%US$25.00US$16.00n/a6
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
Nov ’23US$16.75
US$19.83
+18.4%
11.8%US$23.00US$17.00US$19.796
Oct ’23US$15.37
US$19.83
+29.0%
11.8%US$23.00US$17.00US$18.706
Sep ’23US$15.69
US$20.00
+27.5%
11.0%US$23.00US$17.00US$17.557
Aug ’23US$16.36
US$19.71
+20.5%
11.4%US$23.00US$16.00US$21.077
Jul ’23US$15.49
US$19.57
+26.3%
10.9%US$22.00US$16.00US$19.727
Jun ’23US$16.09
US$19.57
+21.6%
10.9%US$22.00US$16.00US$18.437
May ’23US$14.03
US$20.00
+42.6%
8.9%US$22.00US$17.00US$16.987
Apr ’23US$15.69
US$19.86
+26.6%
9.1%US$22.00US$17.00US$16.927
Mar ’23US$16.34
US$20.17
+23.4%
8.8%US$22.00US$17.00US$16.866

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


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.