VRSN
VeriSign, Inc.
$291.93
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 54.1% above fair value
You pay
$291.93
Bear
$158.58
Fair
$189.42
Bull
$220.25
Bear
$158.58
-45.7%
$8.81 × 18x P/E
Fair
$189.42
-35.1%
$8.81 × 22x P/E
Bull
$220.25
-24.6%
$8.81 × 25x P/E
Adjust Assumptions
21.5x
8.81$
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
33.1x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (15 analysts)
$339.50
Divergence from AlphaVal
44%
Summary
Applying a 22x P/E to adjusted EPS of $8.81, the base-case value is $189.42 per share.
Warnings
Wall Street's average price target is $339.50 (from 15 analysts). Our estimate is 44% below the consensus -- consider that gap carefully.
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