VeriSign, Inc. (VRSN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-19.1%

$249.16

vs $307.82 price

Levered DCF

$276.36

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

-3.9

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	27.51×	25.84×	26.04×	32.92×	36.21×	30.56×	37.27×	31.22×
P/B	-10.42×	-10.37×	-13.47×	-14.19×	-22.56×	-17.91×	-15.32×	-13.13×
P/S	13.55×	13.04×	14.26×	15.56×	21.42×	19.68×	18.54×	14.97×
EV / EBITDA	20.43×	19.31×	20.85×	23.53×	32.84×	29.65×	26.93×	21.97×
Gross margin	88.2%	87.7%	86.8%	85.9%	85.5%	85.8%	85.3%	84.2%
Operating margin	67.7%	67.9%	67.0%	66.2%	65.3%	65.2%	65.5%	63.2%
Net margin	49.8%	50.4%	54.8%	47.3%	59.1%	64.4%	49.7%	47.9%
Current ratio	0.49×	0.43×	0.83×	0.93×	1.18×	1.23×	1.32×	1.39×
Debt / equity	-0.83×	-0.92×	-1.14×	-1.15×	-1.42×	-1.29×	-1.2×	-1.29×
Interest coverage	14.56×	14.05×	13.29×	12.52×	10.41×	9.14×	8.9×	6.68×
Dividend yield	1.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	26.1%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-38.3%	-40.1%	-51.7%	-43.1%	-62.3%	-58.6%	-41.1%	-42.0%
Return on invested capital	16042.0%	451.0%	148.1%	116.1%	95.3%	105.9%	73.2%	63.4%
Return on assets	62.2%	55.9%	46.7%	38.9%	39.6%	46.1%	33.0%	30.4%
Free cash flow yield	4.8%	4.3%	3.8%	3.6%	2.7%	2.8%	3.1%	3.6%
Earnings yield	3.7%	3.9%	3.8%	3.0%	2.8%	3.3%	2.7%	3.2%
Enterprise value	$23.9B	$21.9B	$22.9B	$23.6B	$30B	$26.3B	$24.1B	$19.6B
Net debt / EBITDA	1.27×	1.41×	1.42×	1.42×	1.71×	1.57×	1.43×	1.6×
Cash conversion cycle (days)	-22	-18	-20	-16	-14	-23	-27	-48