VRSN
VeriSign, Inc.
$301.41
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 59.1% above fair value
You pay
$301.41
Bear
$158.58
Fair
$189.42
Bull
$220.25
Bear
$158.58
-47.4%
$8.81 × 18x P/E
Fair
$189.42
-37.2%
$8.81 × 22x P/E
Bull
$220.25
-26.9%
$8.81 × 25x P/E
Adjust Assumptions
21.5x
8.81$
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
34.2x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (15 analysts)
$348.00
Divergence from AlphaVal
46%
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 $348.00 (from 15 analysts). Our estimate is 46% 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