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VeriSign Intrinsic Value: Projected FCF

: $51.47 (As of Today)
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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2022-08-12), VeriSign's Intrinsic Value: Projected FCF is $51.47. The stock price of VeriSign is $197.28. Therefore, VeriSign's Price-to-Intrinsic-Value-Projected-FCF of today is 3.8.

The historical rank and industry rank for VeriSign's Intrinsic Value: Projected FCF or its related term are showing as below:

VRSN' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.06   Med: 2.33   Max: 4.79
Current: 3.83

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of VeriSign was 4.79. The lowest was 1.06. And the median was 2.33.

VRSN's Price-to-Projected-FCF is ranked worse than
79.74% of 1209 companies
in the Software industry
Industry Median: 1.65 vs VRSN: 3.83

VeriSign Intrinsic Value: Projected FCF Historical Data

The historical data trend for VeriSign's Intrinsic Value: Projected FCF 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 Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Intrinsic Value: Projected FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 51.65 54.81 51.52 51.28 53.04

VeriSign Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Intrinsic Value: Projected FCF 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 Premium Member Only Premium Member Only Premium Member Only 50.00 50.69 53.04 52.30 51.47

Competitive Comparison

For the Software - Infrastructure subindustry, VeriSign's Intrinsic Value: Projected FCF, along with its competitors' market caps and Intrinsic Value: Projected 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 Intrinsic Value: Projected FCF Distribution

For the Software industry and Technology sector, VeriSign's Intrinsic Value: Projected FCF distribution charts can be found below:

* The bar in red indicates where VeriSign's Intrinsic Value: Projected FCF falls into.



VeriSign Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get VeriSign's Free Cash Flow(6 year avg) = $670.17.

VeriSign's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Jun22)/0.8)/Shares Outstanding (Diluted Average)
=(11.069452086404*670.17216+-1455/0.8)/108.800
=51.47

* 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.


VeriSign  (NAS:VRSN) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

VeriSign's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=197.28/51.467726238617
=3.83

* 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.


VeriSign Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of VeriSign's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


VeriSign Business Description

VeriSign logo
Industry
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
Armstrong Courtney D director 12061 BLUEMONT WAY RESTON VA 20190
Buchalter Yehuda Ari director 12061 BLUEMONT WAY RESTON VA 20190
Strubbe Todd B officer: EVP and COO VERISIGN 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
Indelicarto Thomas C officer: SVP, Gen Counsel & Secretary 12061 BLUEMONT WAY ATTN: GENERAL COUNSEL RESTON VA 20190
Gorelick Jamie S director 12061 BLUEMONT WAY RESTON VA 20190
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Calys John officer: VP, Interim CFO 12061 BLUEMONT WAY ATTN: OFFICE OF GENERAL COUNSEL RESTON VA 20190
Kane Patrick S officer: Senior Vice President 12061 BLUEMONT WAY ATTN: OFFICE OF GENERAL COUNSEL RESTON VA 20190
Brennan Christine officer: SVP Global HR 21355 RIDGETOP CIRCLE ATTN: GENERAL COUNSEL DULLES VA 20166
Robins Brian G officer: ACTING CHIEF FINANCIAL OFFICER 21355 RIDGETOP CIRCLE ATTN: GENERAL COUNSEL DULLES VA 20166
Cote Kathleen A director 12061 BLUEMONT WAY RESTON VA 20190
Tomlinson Timothy director 12061 BLUEMONT WAY ATTN: GENERAL COUNSEL RESTON VA 20190

VeriSign Headlines

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