VRSN
VeriSign, Inc. (VRSN)
Last Price$240.21.0%
Market Cap$23.0B
DCF value
$275.5
Undervalued (DCF value)
14.7%
Discount Rate
7.7%
Long-Term Growth Rate
4.0%
Stock quality
7/10
Good

VRSN DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
1,265.1
2.7%
1,327.6
4.9%
1,424.9
7.3%
1,493.1
4.8%
1,557.4
4.3%
1,606.1
3.1%
1,632.5
1.6%
1,871.9
14.7%
2,048.6
9.4%
2,226.1
8.7%
2,401.6
7.9%
2,572.3
7.1%
2,735.2
6.3%
2,887.1
5.6%
3,025.0
4.8%
3,146.1
4.0%
824.2
65.2%
866.8
65.3%
943.1
66.2%
1,000.6
67.0%
1,058.2
67.9%
1,086.0
67.6%
1,103.8
67.6%
1,265.7
67.6%
1,385.2
67.6%
1,505.2
67.6%
1,623.9
67.6%
1,739.3
67.6%
1,849.5
67.6%
1,952.2
67.6%
2,045.5
67.6%
2,127.3
67.6%
NOPAT
% effective tax rate
895.2
70.8%
869.7
65.5%
722.0
50.7%
837.8
56.1%
813.6
52.2%
835.0
52.0%
848.7
52.0%
973.2
52.0%
1,065.0
52.0%
1,157.3
52.0%
1,248.6
52.0%
1,337.3
52.0%
1,422.0
52.0%
1,501.0
52.0%
1,572.7
52.0%
1,635.6
52.0%
% of revenue
46.4
3.7%
47.9
3.6%
46.9
3.3%
44.1
3.0%
36.9
2.4%
46.1
2.9%
46.9
2.9%
53.8
2.9%
58.8
2.9%
63.9
2.9%
69.0
2.9%
73.9
2.9%
78.5
2.9%
82.9
2.9%
86.9
2.9%
90.3
2.9%
% of revenue
(43.4)
(3.4%)
(53.0)
(4.0%)
(27.4)
(1.9%)
(45.8)
(3.1%)
(28.1)
(1.8%)
(36.4)
(2.3%)
(37.0)
(2.3%)
(42.4)
(2.3%)
(46.4)
(2.3%)
(50.4)
(2.3%)
(54.4)
(2.3%)
(58.3)
(2.3%)
(61.9)
(2.3%)
(65.4)
(2.3%)
(68.5)
(2.3%)
(71.3)
(2.3%)
(170.2)
(13.5%)
(85.1)
(6.4%)
55.7
3.9%
(43.1)
(2.9%)
36.4
2.3%
18.0
1.1%
18.3
1.1%
21.0
1.1%
22.9
1.1%
24.9
1.1%
26.9
1.1%
28.8
1.1%
30.6
1.1%
32.3
1.1%
33.9
1.1%
35.2
1.1%
Free Cash Flow to Firm (FCFF)
% of revenue
728.0
57.5%
779.5
58.7%
797.2
55.9%
793.0
53.1%
858.8
55.1%
862.7
53.7%
876.9
53.7%
1,005.5
53.7%
1,100.4
53.7%
1,195.7
53.7%
1,290.0
53.7%
1,381.7
53.7%
1,469.2
53.7%
1,550.8
53.7%
1,624.9
53.7%
1,689.9
53.7%
% of FCFF used in calculation
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.89
0.83
0.77
0.71
0.66
0.62
0.57
0.53
0.49
Discounted FCFF (DFCFF)
689.9
784.0
834.4
847.5
854.7
855.8
850.7
839.5
822.5
799.8

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VRSN DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
8,178.8M
30.0%
Terminal Value (TV)
38.8B
Discounted TV
% share of EV
19.1B
70.0%
Total Debt
1,501.7M
Shares outstanding
95.7M
FX rate
1.0
14.7% undervalued

Equity Value Bridge

VRSN DCF Financials

Revenue
$1,557.4M -> $3,025.0M 6.9% CAGR
Operating Income
$1,058.2M -> $2,045.5M 6.8% CAGR
FCFF
$858.8M -> $1,624.9M 6.6% CAGR

VRSN DCF sensitivity

DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
7.0%
$286.0
$286.0
$286.0
$286.0
$286.0
7.5%
$274.0
$279.0
$279.0
$279.0
$279.0
7.7%
$259.0
$275.0
$275.0
$275.0
$275.0
8.5%
$221.0
$236.0
$254.0
$266.0
$266.0
9.0%
$201.0
$213.0
$227.0
$244.0
$259.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
7.0%
19.0%
19.0%
19.0%
19.0%
19.0%
7.5%
14.0%
16.0%
16.0%
16.0%
16.0%
7.7%
8.0%
15.0%
15.0%
15.0%
15.0%
8.5%
(8.0%)
(2.0%)
6.0%
11.0%
11.0%
9.0%
(16.0%)
(11.0%)
(5.0%)
2.0%
8.0%

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FAQ

What is VeriSign, Inc. DCF (discounted cash flow) valuation?

As of Mar 03, 2025, VeriSign, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $275.5. This suggests it may be undervalued by 14.7% compared to its current price of around $240.2, using a WACC of 7.7% and growth rates of 4.0%.

What is VeriSign, Inc. WACC?

As of Mar 03, 2025, VeriSign, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 7.7%.

What is VeriSign, Inc. Enterprise Value?

As of Mar 03, 2025, VeriSign, Inc.'s Enterprise Value (EV) is approximately $27.3B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.