Verisign enables Internet navigation for many of the world's most recognized domain names and provides protection for websites and enterprises around the world. The company was founded in 1995 and is based in Reston, Virginia.
VRSN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for VRSN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Verisign Inc ranked in the 23th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Verisign Inc, consider:
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately only 16.5% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Verisign Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Technology).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ENV, AZPN, BLKB, HMSY, and VSH can be thought of as valuation peers to VRSN, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.