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VeriSign Inc (VRSN) stock analysis

VRSNNasdaqServices-Computer Programming ServicesFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Oct 22, 2026Score 4/3044% above fair value
$313.02+0.54 (+0.17%)

Close on Nov 13, 2026Market cap $28.08BP/E –Yield 0.74%

StockData Score

Prices as of Nov 13, 2026How the score works

Value0Growth1Performance0Health1Dividend2

Weak4 of 30 checks passed

VeriSign passes 4 of the 30 checks behind our score; 16 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
1/6
Past performance
0/6
Financial health
1/6
Dividend
2/6

What stands out

  • Interest well covered

    Operating income covers interest expense 15.0 times.

  • Covered by free cash flow

    Dividends take 28.5% of free cash flow.

  • Gross margin improving

    Gross margin was 88.6% over the last twelve months, against 88.0% a year earlier.

  • Pays a dividend

    VeriSign paid dividends worth 1.0% of the share price over the last twelve months.

What to watch

  • Margin of safety under 20%

    The price is 44.4% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $313.02 is above our fair value estimate of $216.80.

  • Revenue growing under 10% a year

    Revenue grew 5.2% a year over the last three fiscal years, short of the 10% we look for.

  • Elevated bankruptcy risk

    The Altman Z-score is -3.83; above 3 is the safe zone and below 1.8 the distress zone.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA above its 5-year median

    VeriSign's EV/EBITDA of 23.0 is above its 5-year median of 20.2.

  • P/S above the industry

    VeriSign's price-to-sales of 16.21 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 2.79 (book value is negative, so we use sales).

  • Trading above fair value

    The share price of $313.02 is above our fair value estimate of $216.80.

  • Margin of safety under 20%

    The price is 44.4% above fair value, so there is no margin of safety.

Growth1/6

  • Revenue growing under 10% a year

    Revenue grew 5.2% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew 6.5% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin improving

    Gross margin was 88.6% over the last twelve months, against 88.0% a year earlier.

Past performance0/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on invested capital

    Needs operating income and invested capital.

  • Return on equity against the industry

    Needs positive equity.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin against its history

    Needs five years of revenue and net income.

  • Net margin against the industry

    Needs revenue and net income.

Financial health1/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt coverage

    Needs operating cash flow.

  • Interest well covered

    Operating income covers interest expense 15.0 times.

  • Short-term assets don't cover short-term debts

    Current assets are 0.42 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is -3.83; above 3 is the safe zone and below 1.8 the distress zone.

Dividend2/6

  • Pays a dividend

    VeriSign paid dividends worth 1.0% of the share price over the last twelve months.

  • Yield below Treasuries

    The 1.0% yield is below the 4.7% on a 1-year Treasury.

  • Yield below the top quarter

    The top quarter of US dividend payers yield 3.8% or more; VeriSign yields 1.0%.

  • Dividend stability

    Fewer than five years of dividend history.

  • Earnings cover

    Needs dividends paid and net income.

  • Covered by free cash flow

    Dividends take 28.5% of free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$216.80

The share price is 44% above this estimate.

20%+ below
Near fair value
20%+ above
$313.02Price$216.80Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
EV/EBITDA19.2×20.2×18.2×$261.9970%
Earnings power9.2% cost of equity––$111.3730%
Fair value$216.80100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • EV/EBITDA at month end
  • Own 5-year median 20.2
  • Computer Programming, Data Processing, and Other Computer Related Services median 18.2

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$322.17M
Value traded per 1% price move
$213.54M

Downside

Medium risk

Typical loss in a bad month
15.9%
Volatility (annualized)
28%
Sharpe ratio, 1 year
0.72
Beta to the S&P 500 (5Y)
0.82

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

88.2%+2.4 pts over 5 years

Operating margin

67.7%+2.5 pts over 5 years

Net margin

–

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