DCF Tool

VRSN

Verisign Inc. – Custom Computer Programming Services
Verisign, a global provider of domain name registry services and internet infrastructure, enables internet navigation for many of the world's most recognized domain names. Verisign enables the security, stability and resiliency of key internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 global internet root servers and providing registration services and authoritative resolution for the .com and .net top-level domains, which support the majority of global e-commerce.
Analysis Results
Intrinsic Value $138.27
Latest Price $165.56
Relative Value 20% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 9.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.881 0.809
2023 0.965 0.813
2024 1.06 0.816
2025 1.16 0.82
2026 1.27 0.824
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 18.5 billion. This corresponds to a present value of 11.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.08 billion. Adding in the terminal value gives a total present value of 15.1 billion.

There are presently 110.0 million outstanding shares, so the intrinsic value per share is 138.27.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,268,735,000
Current Cash 1,205,805,000
Current Liabilities 1,073,991,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,011,061,000
Change in NCWC -73,401,000
EBIT 866,803,000
Tax Provision -2,611,000
Depreciation and Amortization 47,940,000
Capital Expenditure -53,033,000
Unlevered Free Cash Flow 788,309,000
Current Assets 1,217,940,000
Current Cash 1,166,907,000
Current Liabilities 988,693,000
Current Debt 0
Non-Cash Working Capital (NCWC) -937,660,000
Change in NCWC -33,024,000
EBIT 824,201,000
Tax Provision -64,644,000
Depreciation and Amortization 46,352,000
Capital Expenditure -43,395,000
Unlevered Free Cash Flow 794,134,000
Current Assets 1,278,589,000
Current Cash 1,218,059,000
Current Liabilities 965,166,000
Current Debt 0
Non-Cash Working Capital (NCWC) -904,636,000
Change in NCWC -4,411,000
EBIT 806,127,000
Tax Provision 146,477,000
Depreciation and Amortization 46,330,000
Capital Expenditure -40,316,000
Unlevered Free Cash Flow 652,112,183
Current Assets 1,317,034,000
Current Cash 1,269,669,000
Current Liabilities 947,590,000
Current Debt 0
Non-Cash Working Capital (NCWC) -900,225,000
Change in NCWC 1,285,000
EBIT 767,392,000
Tax Provision 147,027,000
Depreciation and Amortization 48,367,000
Capital Expenditure -37,007,000
Unlevered Free Cash Flow 625,376,453
Current Assets 2,446,153,000
Current Cash 2,414,751,000
Current Liabilities 1,560,528,000
Current Debt 627,616,000
Non-Cash Working Capital (NCWC) -901,510,000
Change in NCWC -53,760,000
EBIT 707,722,000
Tax Provision 141,764,000
Depreciation and Amortization 49,878,000
Capital Expenditure -49,499,000
Unlevered Free Cash Flow 486,849,361
Current Assets 1,842,342,000
Current Cash 1,797,907,000
Current Liabilities 1,521,949,000
Current Debt 629,764,000
Non-Cash Working Capital (NCWC) -847,750,000
Change in NCWC -31,590,000
EBIT 686,572,000
Tax Provision 140,528,000
Depreciation and Amortization 58,167,000
Capital Expenditure -169,574,000
Unlevered Free Cash Flow 377,561,454
Current Assets 1,967,924,000
Current Cash 1,915,430,000
Current Liabilities 1,502,980,000
Current Debt 634,326,000
Non-Cash Working Capital (NCWC) -816,160,000
Change in NCWC 407,283,000
EBIT 605,946,000
Tax Provision 112,414,000
Depreciation and Amortization 61,491,000
Capital Expenditure -40,656,000
Unlevered Free Cash Flow 894,380,182
Current Assets 1,490,607,000
Current Cash 1,424,684,000
Current Liabilities 1,920,556,000
Current Debt 631,190,000
Non-Cash Working Capital (NCWC) -1,223,443,000
Change in NCWC 101,773,000
EBIT 564,427,000
Tax Provision 128,051,000
Depreciation and Amortization 63,690,000
Capital Expenditure -39,327,000
Unlevered Free Cash Flow 541,020,693
Current Assets 1,803,199,000
Current Cash 1,723,285,000
Current Liabilities 2,029,186,000
Current Debt 624,056,000
Non-Cash Working Capital (NCWC) -1,325,216,000
Change in NCWC -717,226,000
EBIT 528,232,000
Tax Provision -87,679,000
Depreciation and Amortization 60,655,000
Capital Expenditure -65,594,000
Unlevered Free Cash Flow -193,933,000
Current Assets 1,643,464,000
Current Cash 1,556,436,000
Current Liabilities 695,018,000
Current Debt 0
Non-Cash Working Capital (NCWC) -607,990,000
Change in NCWC -50,639,000
EBIT 456,562,000
Tax Provision 100,210,000
Depreciation and Amortization 54,819,000
Capital Expenditure -53,023,000
Unlevered Free Cash Flow 296,857,278

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