VRSN
VeriSign, Inc.
$270.52
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 20.4% above fair value
You pay
$270.52
Bear
$188.08
Fair
$224.66
Bull
$261.22
Bear
$188.08
-30.5%
$8.93 × 18x P/E
Fair
$224.66
-17.0%
$8.93 × 22x P/E
Bull
$261.22
-3.4%
$8.93 × 25x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
30.3x
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 $355.00 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $224.66 per share.
Warnings
Wall Street's average price target is $355.00 (from 14 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