Verra Mobility Corporation logo VRRM - Verra Mobility Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 8
HOLD 3
SELL 0
STRONG
SELL
0
| PRICE TARGET: $19.00 DETAILS
HIGH: $22.00
LOW: $15.00
MEDIAN: $20.00
CONSENSUS: $19.00
UPSIDE: 40.85%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

High-Growth Software 80% confidence

Primary model: Revenue × Terminal Margin DCF

Valuation Signal Undervalued Moderate
Trading 30.7% below fair value
Current Price $13.49
Bear Case $17.19 27.5% upside ($17.19 - $13.49) / $13.49 = 27.5% 8% rev growth, 21% terminal margin
Fair Value $19.48 44.4% upside ($19.48 - $13.49) / $13.49 = 44.4% 6% rev growth, 28% terminal margin
Bull Case $24.28 80.0% upside ($24.28 - $13.49) / $13.49 = 80.0% 8% rev growth, 32% terminal margin

Adjust Assumptions

6.0%
28.0%
12.0%

Key Value Driver

Revenue growth (6%) × margin expansion to 28%

Terminal Value % of EV 54%
Implied Market Multiple 2.1x

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 $19.00 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $19.48 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.

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