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VirnetX HoldingVHC +4.46%47 Cash Ratio is 8.37 as of Mar. 2026, which is 21% above its 10-year median of 6.90. GuruFocus rates VHC with a GF Score™ of 47/100 and a GF Value™ of $87.34 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,817 Software companies, VirnetX Holding ranks better than 96.38% on this metric.
VirnetX Holding has a Cash Ratio of 8.37. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for VirnetX Holding's Cash Ratio or its related term are showing as below:
VHC'
s Cash Ratio Range Over the Past 10 Years
Min: 1.02 Med: 6.9 Max: 302.62
Current: 8.37
During the past 13 years, VirnetX Holding's highest Cash Ratio was 302.62. The lowest was 1.02. And the median was 6.90.
VHC's Cash Ratio is ranked better than 96.38% of 2817
companies
in the Software industry
Industry Median: 0.78
vs VHC: 8.37
VirnetX Holding (NAS:VHC) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
VirnetX Holding Cash Ratio Related Terms
VirnetX Holding Cash Ratio Historical Data
* Premium members only.
The historical data trend for VirnetX Holding's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, VirnetX Holding's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
VirnetX Holding Cash Ratio vs Software Industry
For the Software industry and Technology sector, VirnetX Holding's Cash Ratio distribution charts can be found below:
* The bar in red indicates where VirnetX Holding's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
VirnetX Holding (VHC) has a Cash Ratio of 8.37 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on VirnetX Holding and its competitors. This is 21% above median its historical median of 6.90. Over the past decade, VirnetX Holding's Cash Ratio has ranged from 1.02 to 302.62. According to the industry distribution chart, VirnetX Holding ranks #102 out of 2817 companies in the Software industry, placing it in the top 3.6%.
Is VirnetX Holding's Cash Ratio too high?
VirnetX Holding's current Cash Ratio of 8.37 is 21% above median its 10-year median of 6.90. Over the past 10 years, this metric has ranged from a low of 1.02 to a high of 302.62. The Software industry median Cash Ratio is 0.78. VirnetX Holding's value of 8.37 is 973.1% above this industry median. Based on the distribution chart, VirnetX Holding ranks #102 out of 2817 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, VirnetX Holding has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does VirnetX Holding's Cash Ratio compare to WHEN and RMXI?
According to the Software industry distribution chart, VirnetX Holding ranks #102 out of 2817 companies for Cash Ratio. This places VirnetX Holding in the top 4% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.78. VirnetX Holding's value of 8.37 is 973.1% above this benchmark. Historically, VirnetX Holding's own Cash Ratio has ranged from 1.02 to 302.62 over the past decade. While the company's 10-year median is 6.90 vs. the industry median of 0.78, VirnetX Holding has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Software company?
The median Cash Ratio among Software companies is 0.78, based on 2,817 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. VirnetX Holding's current Cash Ratio of 8.37 is 973.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on VirnetX Holding and its competitors. For the Software industry, the median Cash Ratio is 0.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VirnetX Holding's current Cash Ratio is 8.37, which is 21% above median its own 10-year median of 6.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VirnetX Holding stock overvalued right now?
Based on GuruFocus' analysis, VirnetX Holding (VHC) is currently considered Possible Value Trap. The stock's GF Value™ is $87.34, compared to a current price of $11.84 — trading 86.4% below its estimated fair value. The current Cash Ratio is 8.37, which is 21% above median its 10-year median of 6.90 and 973.1% above the Software industry median of 0.78. VirnetX Holding's overall GF Score™ is 47/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For VirnetX Holding (VHC), the current Cash Ratio is 8.37 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is VirnetX Holding (VHC) Overvalued in 2026?
Based on GuruFocus' analysis, VirnetX Holding stock appears to be undervalued.
The current stock price of $11.84 is trading 86.4% below its estimated GF Value™ of $87.34.
GuruFocus considers VirnetX Holding to be Possible Value Trap.
Key valuation signals for VHC:
Cash Ratio: 8.37 (21% above median its 10-year median of 6.90)
GF Value™: $87.34 vs. price of $11.84 (86.4% below fair value)
Industry Position: 973.1% above the Software median (#102 of 2817)
No single metric tells the full story. See the VHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VirnetX Holding Corp is engaged in the business of commercializing a portfolio of patents. It is an Internet security software and technology company with patented technology for secure communications. Its software and technology solutions, including its Secure Domain Name Registry and Technology, VirnetX One, War Room, VirnetX Matrix, and GABRIEL Connection Technology, are designed to be device and location-independent, and enable a secure real-time communication environment for all types of enterprise applications, services and critical infrastructures.
47GF Score
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