We’ve recently updated our valuation analysis.

VeriSign Valuation

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

[object Object] Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

VRSN 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/Revenue15.6x
Enterprise Value/EBITDA22.5x
PEG Ratio4.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VRSN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.6x
AKAM Akamai Technologies
28.4x17.4%US$14.4b
GDDY GoDaddy
34x19.6%US$11.8b
SWCH Switch
14.3x-43.0%US$8.4b
CD Chindata Group Holdings
29.9x29.5%US$2.8b
VRSN VeriSign
25.4x6.2%US$20.9b

Price-To-Earnings vs Peers: VRSN is good value based on its Price-To-Earnings Ratio (25.4x) compared to the peer average (26.6x).


Price to Earnings Ratio vs Industry

How does VRSN's PE Ratio compare vs other companies in the US IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.7%
n/an/an/a

Price-To-Earnings vs Industry: VRSN is good value based on its Price-To-Earnings Ratio (25.4x) compared to the US IT industry average (29.3x)


Price to Earnings Ratio vs Fair Ratio

What is VRSN'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.

VRSN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.4x
Fair PE Ratio26x

Price-To-Earnings vs Fair Ratio: VRSN is good value based on its Price-To-Earnings Ratio (25.4x) compared to the estimated Fair Price-To-Earnings Ratio (26x).


Share Price vs Fair Value

What is the Fair Price of VRSN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VRSN ($197.29) is trading above our estimate of fair value ($173.13)

Significantly Below Fair Value: VRSN is trading above our estimate of fair value.


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 VRSN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$197.29
US$220.50
+11.8%
2.0%US$225.00US$216.00n/a2
Nov ’23US$196.97
US$220.50
+11.9%
2.0%US$225.00US$216.00n/a2
Oct ’23US$173.70
US$215.00
+23.8%
4.7%US$225.00US$205.00n/a2
Sep ’23US$182.43
US$215.00
+17.9%
4.7%US$225.00US$205.00n/a2
Aug ’23US$193.12
US$215.00
+11.3%
4.7%US$225.00US$205.00n/a2
Jul ’23US$170.81
US$212.50
+24.4%
1.2%US$215.00US$210.00n/a2
Jun ’23US$174.37
US$212.50
+21.9%
1.2%US$215.00US$210.00n/a2
May ’23US$178.69
US$236.00
+32.1%
14.1%US$283.00US$210.00n/a3
Apr ’23US$225.27
US$252.67
+12.2%
11.2%US$283.00US$215.00n/a3
Mar ’23US$216.04
US$252.67
+17.0%
11.2%US$283.00US$215.00n/a3
Feb ’23US$216.85
US$238.67
+10.1%
12.1%US$260.00US$198.00n/a3
Jan ’23US$253.82
US$240.25
-5.3%
10.4%US$260.00US$198.00n/a4
Dec ’22US$238.15
US$240.25
+0.9%
10.4%US$260.00US$198.00US$204.574
Nov ’22US$223.07
US$240.25
+7.7%
10.4%US$260.00US$198.00US$196.974
Oct ’22US$206.68
US$237.50
+14.9%
12.5%US$260.00US$187.00US$173.704
Sep ’22US$218.51
US$237.50
+8.7%
12.5%US$260.00US$187.00US$182.434
Aug ’22US$216.37
US$237.50
+9.8%
12.5%US$260.00US$187.00US$193.124
Jul ’22US$229.19
US$234.50
+2.3%
12.0%US$260.00US$187.00US$170.814
Jun ’22US$217.08
US$234.50
+8.0%
12.0%US$260.00US$187.00US$174.374
May ’22US$218.77
US$234.50
+7.2%
12.0%US$260.00US$187.00US$178.694
Apr ’22US$201.90
US$228.50
+13.2%
14.5%US$260.00US$173.00US$225.274
Mar ’22US$195.80
US$228.50
+16.7%
14.5%US$260.00US$173.00US$216.044
Feb ’22US$198.71
US$223.26
+12.4%
16.5%US$260.00US$154.00US$216.855
Jan ’22US$216.40
US$223.26
+3.2%
16.5%US$260.00US$154.00US$253.825
Dec ’21US$200.75
US$223.26
+11.2%
16.5%US$260.00US$154.00US$238.155

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


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