The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$652.38||$706.37||$832.00||$878.93||$928.50|
|Source||Analyst x3||Analyst x3||Analyst x1||Extrapolated @ (5.64%)||Extrapolated @ (5.64%)|
Discounted (@ 11.01%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $929 × (1 + 2.47%) ÷ (11.01% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$9,512 = $2,899 + $6,613
Value = Total value / Shares Outstanding ($9,512 / 99)Discount to Share Price
Value per share:
Current discount (share price of $115.03): -19.21%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 11.01% = 2.47% + (1.134 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($11,250,791,442).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.134 = 0.995 (1 + (1- 35%) (21.39%))
Levered Beta used in calculation = 1.134
Mr. D. James Bidzos, also known as Jim, is the Founder of VeriSign, Inc. and has been its Executive Chairman since August 17, 2009 and also its Chief Executive Officer and President since August 1, 2011. Mr. Bidzos served as the Interim Chief Executive Officer of VeriSign, Inc. from July 2008 to August 2009 and its Interim President from July 2008 to January 14, 2009. He served as an Executive Vice President of RSA Security LLC from July 1996 to February 1999 and later served as its President and Chief Executive Officer. He served as President and Chief Executive Officer of RSA Data Security from 1986 to February 1999. He served as Interim President of VeriSign, Inc. from July 2008 to January 14, 2009. Mr. Bidzos has been the Chairman of the Board at inCompass Wireless, Inc. since 2007. He served as the Executive Chairman of VeriSign, Inc. from August 21, 2007 to January 2009 and its Interim Chairman of VeriSign, Inc. since June 2008 to August 2009 and previously also served as its Chairman from April 1995 to December 2001 and Vice Chairman from December 2001 to July 2007. He served as Vice Chairman of RSA Security, from March 1999 to May 2002. He has been a Director of VeriSign, Inc. since April 1995. He served as a Director of Trintech Group plc since February 1999. Mr. Bidzos has served as a director of VeriSign Japan K.K. since March 2008 and served as Representative Director of VeriSign Japan K.K. from March 2008 to September 2008.
Average tenure and age of the VeriSign management team in years:
Average tenure and age of the VeriSign board of directors in years:
VeriSign, Inc. provides domain name registry services and Internet security worldwide. The company offers registry services that operate the authoritative directory of .com, .net, .cc, .tv, and .name domain names, as well as the back-end systems for .gov, .jobs, .edu, and other domain names. Its registry services allow individuals and organizations to establish their online identities. The company also provides infrastructure assurance services consisting of distributed denial of service protection services, Verisign iDefense security intelligence services, and managed domain name system services. It serves financial institutions, software-as-a-service providers, e-commerce providers, and media companies, as well as governmental and quasi-governmental organizations through direct sales and indirect channels. VeriSign, Inc. was founded in 1995 and is headquartered in Reston, Virginia.
12061 Bluemont Way,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||VRSN||Common Stock||Nasdaq Global Select||US||USD||30. Jan 1998|
|DB||VRS||Common Stock||Deutsche Boerse AG||DE||EUR||30. Jan 1998|
|Industry:||Internet Software and Services|