Is It Time To Consider Buying VeriSign, Inc. (NASDAQ:VRSN)?

Let's talk about the popular VeriSign, Inc. (NASDAQ:VRSN). The company's shares maintained its current share price over the past couple of month on the NASDAQGS, with a relatively tight range of US$174 to US$191. However, does this price actually reflect the true value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at VeriSign’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for VeriSign

What Is VeriSign Worth?

According to our valuation model, VeriSign seems to be fairly priced at around 9.6% below our intrinsic value, which means if you buy VeriSign today, you’d be paying a fair price for it. And if you believe that the stock is really worth $206.73, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, VeriSign’s low beta implies that the stock is less volatile than the wider market.

What does the future of VeriSign look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of VeriSign, it is expected to deliver a relatively unexciting earnings growth of 0.7%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? VRSN’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on VRSN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example, we've found that VeriSign has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

If you are no longer interested in VeriSign, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.