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 21th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for VRSN, they are:
In the past 5.69 years, Verisign Inc has a compound free cash flow growth rate of 0.03%; that's higher than only 23.97% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 7% of the company's capital is sourced from debt; this is greater than merely 19.77% of the free cash flow producing stocks we're observing.
VRSN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 39.73% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Verisign Inc? See IIIV, MTCH, OMCL, HPQ, and IIJIY.
Identifying reasonably priced companies in the tech sector can be tricky, as valuation multiples have recently expanded due to the prolonged six-month rally post the COVID-19's selloff back in late March. As stocks have been getting more expensive, dividend yields have gone down, while the massive buybacks being executed by...
Nikolaos Sismanis on Seeking Alpha | September 14, 2020
Verisign, Inc. (VRSN) Q2 2020 Earnings Conference Call July 23, 2020, 04:30 PM ET Company Participants David Atchley - VP & Corporate Treasurer James Bidzos - Founder, Executive Chairman & CEO George Kilguss - EVP & CFO Conference Call Participants Robert Oliver - Robert W. Baird Nicholas Jones - Citigroup...
Shares of VeriSign (NASDAQ:VRSN) were flat in after-market trading after the company reported Q2 results.Quarterly Results Earnings per share were down 0.75% over the past year to $1.32, which were in line with the estimate of $1.32.Revenue of $314,365,000 higher by 2.64% from the same period last year, which beat the estimate of $312,650,000.Looking Ahead VeriSign hasn't issued any earnings guidance for the time being.Revenue guidance hasn't been issued by the company for now.Details Of The Call Date: Jul 23, 2020View more earnings on VRSNTime: 04:30 PMET Webcast URL: https://globalmeet.webcasts.com/starthere.jsp?ei=1327603&tp_key=a63e921b29Recent Stock Performance 52-week high: $221.3052-week low: $148.77Price action over last quarter: down 3.13%Company Profile VeriSign is the...