Verra Mobility Corporation logo VRRM - Verra Mobility Corporation

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 4
HOLD 7
SELL 1
STRONG
SELL
0
| PRICE TARGET: $5.75 DETAILS
HIGH: $9.00
LOW: $4.00
MEDIAN: $5.00
CONSENSUS: $5.75
UPSIDE: 39.56%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

High-Growth Software 80% confidence

Primary model: Revenue × Terminal Margin DCF

Valuation Signal Undervalued Strong
Trading 68.2% below fair value
Current Price $4.12
Bear Case $15.19 268.6% upside ($15.19 - $4.12) / $4.12 = 268.6% 8% rev growth, 21% terminal margin
Fair Value $12.96 214.5% upside ($12.96 - $4.12) / $4.12 = 214.5% 1% rev growth, 28% terminal margin
Bull Case $14.80 259.3% upside ($14.80 - $4.12) / $4.12 = 259.3% 1% rev growth, 32% terminal margin

Adjust Assumptions

1.0%
28.0%
12.0%

Key Value Driver

Revenue growth (1%) × margin expansion to 28%

Terminal Value % of EV 51%
Implied Market Multiple 0.6x

Plain-Language Summary

Our base-case estimate uses a discounted cash flow model based on revenue growth and long-run free cash flow margins. We then blend that result with the average analyst price target of $5.75 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $12.96 per share.

Warnings

Gross margin of 97% means each dollar of revenue is highly profitable. As the company grows, overhead costs should shrink as a share of revenue, boosting overall profits.
Wall Street's average price target is $5.75 (from 12 analysts). Our estimate is 157% above the consensus -- consider that gap carefully.

Key Risks

  • Current FCF misleads — the model values future margins, not today's cash
  • SBC dilution is the hidden tax: 2-4% annual share growth compounds fast
  • Revenue deceleration is inevitable — the question is when and how steep