VeriSign (VRSN): Reassessing Valuation After Recent Pullback and Solid One-Year Shareholder Returns

VeriSign (VRSN) has been quietly grinding higher this year, even after a recent pullback over the past month and past 3 months, leaving some investors wondering whether the stock’s advance still has room.

See our latest analysis for VeriSign.

Despite the recent 90 day share price pullback, VeriSign’s 1 year total shareholder return of 28.17 percent and steady revenue growth suggest momentum has cooled a bit rather than broken, as investors reassess how much to pay for its dependable cash flows.

If this kind of steady compounder appeals to you, it is also worth exploring other infrastructure and software names in high growth tech using high growth tech and AI stocks.

With shares now trading about 21 percent below average analyst targets, but only roughly in line with some intrinsic value estimates, the key question is whether this dependable compounder still offers attractive long-term potential or if the market already reflects its future growth.

Most Popular Narrative Narrative: 18% Undervalued

With VeriSign last closing at $243.24 versus a narrative fair value near $295.50, the story leans toward upside from here, anchored in durable cash flows.

The analysts have a consensus price target of $309.0 for VeriSign based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $340.0, and the most bearish reporting a price target of just $250.0.

Read the complete narrative.

Curious what powers that gap between today’s price and the narrative fair value? The answer blends steady revenue expansion, rising margins, and a punchy future earnings multiple. Want to see how those moving parts fit together into one valuation roadmap? Read on to unpack the full narrative.

Result: Fair Value of $295.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upbeat narrative could unravel if parked domain monetization weakens or if promotional domain growth fails to convert into durable, high renewal revenue.

Find out about the key risks to this VeriSign narrative.

Build Your Own VeriSign Narrative

If you see the story differently or want to dive into the numbers yourself, you can build a personalized view in just minutes: Do it your way.

A great starting point for your VeriSign research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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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.

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