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VeriSign (VeriSign) Cyclically Adjusted FCF per Share : $6.84 (As of Mar. 2024)


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What is VeriSign Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

VeriSign's adjusted free cash flow per share for the three months ended in Mar. 2024 was $2.512. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $6.84 for the trailing ten years ended in Mar. 2024.

During the past 12 months, VeriSign's average Cyclically Adjusted FCF Growth Rate was 9.10% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 14.00% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 14.80% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 14.70% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of VeriSign was 18.70% per year. The lowest was 11.40% per year. And the median was 14.90% per year.

As of today (2024-04-27), VeriSign's current stock price is $175.48. VeriSign's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $6.84. VeriSign's Cyclically Adjusted Price-to-FCF of today is 25.65.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of VeriSign was 58.57. The lowest was 25.77. And the median was 34.75.


VeriSign Cyclically Adjusted FCF per Share Historical Data

The historical data trend for VeriSign's Cyclically Adjusted FCF per Share 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.

* Premium members only.

VeriSign Cyclically Adjusted FCF per Share Chart

VeriSign Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.96 4.53 5.43 6.15 6.71

VeriSign Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted FCF per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.39 6.49 6.65 6.71 6.84

Competitive Comparison of VeriSign's Cyclically Adjusted FCF per Share

For the Software - Infrastructure subindustry, VeriSign's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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.


VeriSign's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, VeriSign's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where VeriSign's Cyclically Adjusted Price-to-FCF falls into.



VeriSign Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, VeriSign's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=2.512/129.4194*129.4194
=2.512

Current CPI (Mar. 2024) = 129.4194.

VeriSign Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.805 100.560 1.036
201409 1.133 100.428 1.460
201412 1.187 99.070 1.551
201503 0.894 99.621 1.161
201506 1.247 100.684 1.603
201509 1.128 100.392 1.454
201512 1.462 99.792 1.896
201603 1.083 100.470 1.395
201606 1.233 101.688 1.569
201609 0.169 101.861 0.215
201612 1.581 101.863 2.009
201703 1.113 102.862 1.400
201706 1.382 103.349 1.731
201709 1.233 104.136 1.532
201712 1.532 104.011 1.906
201803 0.667 105.290 0.820
201806 1.549 106.317 1.886
201809 1.444 106.507 1.755
201812 1.739 105.998 2.123
201903 1.481 107.251 1.787
201906 1.288 108.070 1.542
201909 1.660 108.329 1.983
201912 1.571 108.420 1.875
202003 1.448 108.902 1.721
202006 1.769 108.767 2.105
202009 1.085 109.815 1.279
202012 1.654 109.897 1.948
202103 1.691 111.754 1.958
202106 1.110 114.631 1.253
202109 2.191 115.734 2.450
202112 1.732 117.630 1.906
202203 1.818 121.301 1.940
202206 1.275 125.017 1.320
202209 2.384 125.227 2.464
202212 1.975 125.222 2.041
202303 2.412 127.348 2.451
202306 1.335 128.729 1.342
202309 2.104 129.860 2.097
202312 1.953 129.419 1.953
202403 2.512 129.419 2.512

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


VeriSign  (NAS:VRSN) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

VeriSign's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=175.48/6.84
=25.65

* 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.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of VeriSign was 58.57. The lowest was 25.77. And the median was 34.75.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


VeriSign Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of VeriSign's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


VeriSign (VeriSign) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » VeriSign Inc (NAS:VRSN) » Definitions » Cyclically Adjusted FCF per Share
Address
12061 Bluemont Way, Reston, VA, USA, 20190
Verisign is the sole authorized registry for several generic top-level domains, including the widely utilized .com and .net top-level domains. The company operates critical internet infrastructure to support the domain name system, including operating two of the world's 13 root servers that are used to route internet traffic. In 2018, the firm sold off its Security Services business, signalling a renewed focus on the core registry business.
Executives
D James Bidzos director 12061 BLUEMONT WAY, ATTN: GENERAL COUNSEL, RESTON VA 20190
Danny R Mcpherson officer: EVP- Engineering, Ops. & CSO 12061 BLUEMONT WAY, RESTON VA 20190
Thomas C Indelicarto officer: SVP, Gen Counsel & Secretary 12061 BLUEMONT WAY, ATTN: GENERAL COUNSEL, RESTON VA 20190
Timothy Tomlinson director 12061 BLUEMONT WAY, ATTN: GENERAL COUNSEL, RESTON VA 20190
Todd B Strubbe officer: EVP and COO VERISIGN, 12061 BLUEMONT WAY, RESTON VA 20190
Kathleen A Cote director 12061 BLUEMONT WAY, RESTON VA 20190
Yehuda Ari Buchalter director 12061 BLUEMONT WAY, RESTON VA 20190
Kilguss George E Iii officer: EVP and CFO C/O VERISIGN, INC., 12061 BLUEMONT WAY, RESTON VA 20190
Frist Thomas F Iii director 3100 WEST END AVENUE SUITE 1225, NASHVILLE TN 37203
Armstrong Courtney D director 12061 BLUEMONT WAY, RESTON VA 20190
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET, OMAHA NE 68131
Jamie S Gorelick director 12061 BLUEMONT WAY, RESTON VA 20190
Richard H Goshorn officer: SVP, GC and Secretary 12061 BLUEMONT WAY, ATTN: GENERAL COUNSEL, RESTON VA 20190
John D Roach director PMI GROUP INC, 601 MONTGOMERY ST, SAN FRANCISCO CA 94111
Warren E Buffett 10 percent owner 3555 FARNAM ST, STE 1440, OMAHA NE 68131

VeriSign (VeriSign) Headlines

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