VHC (VirnetX Holding) Moat Score: 4/10 (As of Jun. 27, 2026)


VHC VirnetX Holding Corp VHC
49 GF Score
Price $12.99
GF Value $86.27
Valuation Possible Value Trap
! 5 Warning Signs
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What is VirnetX Holding Moat Score?

VirnetX Holding VHC +10.18% 49 Moat Score is 4 as of Jun. 27, 2026. GuruFocus rates VHC with a GF Score™ of 49/100 and a GF Value™ of $86.27 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,848 Software companies, VirnetX Holding ranks better than 90.17% on this metric.

VirnetX Holding has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

VirnetX Holding has Narrow Moat: VirnetX Holding Corp has valuable intellectual property and patents, particularly in secure communications. However, it lacks strong market leadership and customer loyalty, limiting its competitive advantage to a modest level.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes VirnetX Holding might have Narrow Moat - Discernible but modest moat.

VirnetX Holding  (NAS:VHC) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

VirnetX Holding Moat Score Related Terms

VHC vs AGPU, SKYA, RMXI: Moat Score Comparison

For the Software - Infrastructure subindustry, VirnetX Holding's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Software Industry

For the Software industry and Technology sector, VirnetX Holding's Moat Score distribution charts can be found below:

* The bar in red indicates where VirnetX Holding's Moat Score falls into.


VHC
49GF Score
VirnetX Holding Corp VHC
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
VirnetX Holding (VHC) has a Moat Score of 4 as of Jun. 27, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, VirnetX Holding ranks #280 out of 2848 companies in the Software industry, placing it in the top 9.8%.
Is VirnetX Holding's Moat Score too high?
VirnetX Holding's current Moat Score is 4. Based on the distribution chart, VirnetX Holding ranks #280 out of 2848 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 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does VirnetX Holding's Moat Score compare to AGPU and SKYA?
According to the Software industry distribution chart, VirnetX Holding ranks #280 out of 2848 companies for Moat Score. This places VirnetX Holding in the top 10% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. VirnetX Holding's current Moat Score is 4. 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 $86.27, compared to a current price of $12.99 — trading 84.9% below its estimated fair value. The current Moat Score is 4. VirnetX Holding's overall GF Score™ is 49/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For VirnetX Holding (VHC), the current Moat Score is 4 as of Jun. 27, 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 $12.99 is trading 84.9% below its estimated GF Value™ of $86.27. GuruFocus considers VirnetX Holding to be Possible Value Trap.

Key valuation signals for VHC:

  • Moat Score: 4
  • GF Value™: $86.27 vs. price of $12.99 (84.9% below fair value)
  • GF Score™: 49/100 with 5 warning signs

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 Business Description

Other Exchanges VN20:Germany
Address 308 Dorla Court, Suite 206, Zephyr Cove, NV, USA, 89448
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.
49GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$12.99
Price
$86.27
GF Value