VRNT Verint Systems Inc.
$20.51
Stable Earnings Power 40%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Undervalued

Trading 43.0% below fair value

You pay $20.51
Bear $30.15
Fair $36.01
Bull $41.88
Bear $30.15 +47.0% $1.15 × 27x P/E
Fair $36.01 +75.6% $1.15 × 32x P/E
Bull $41.88 +104.2% $1.15 × 38x P/E

Key Value Driver

Normalized P/E multiple (32x base case)

Implied Market Multiple 17.8x

Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $32.57 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $36.01 per share.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples