VRSN
VeriSign, Inc.$228.05
Unclear
Target $221.88
Report: Mar 07, 2026Technology • Software - Infrastructure • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$228.05-2.7%
Rec: UnclearConviction: Medium
Entry Target
$170.68
(25% below current)
Fair Value
$221.88
(3% below current)
Stop Loss
$165.00
(28% below current)
Position Size
Starter
Time Horizon
Long-Term
Key Metrics
Live Snapshot
Market Data
52 Week High$310.60
52 Week Low$208.86
Avg. 3 Month Volume779K
Efficiency
LTM Gross Margin88.2%
LTM EBITDA Margin71.0%
LTM EBIT Margin69.1%
LTM Operating Margin67.7%
LTM ROA59.1%
LTM ROE-40.4%
LTM ROIC77.6%
LTM ROCE2089.6%
Capital Structure
Market Cap (MM)$22.8B
Enterprise Value (MM)$24.3B
Shares Outstanding92.30M
Total Debt (MM)$1.79B
Cash & Equivalents (MM)$307.90M
LTM Net Debt (MM)$1.48B
LTM Net Debt/EBITDA1.3x
Growth
TTM Rev. Growth6.4%
Last 3-Yr Rev. CAGR5.2%
Last 3-Yr EBITDA CAGR5.5%
Last 3-Yr EPS CAGR12.3%
Valuation
Street Target Price$325.00
LTM EV/Revenue14.6x
LTM EV/Gross Profit16.6x
LTM EV/EBIT21.2x
LTM EV/EBITDA20.6x
LTM P/E27.6x
LTM EV/FCF22.7x
LTM P/FCF21.3x
LTM P/TB17.9x
LTM P/B-10.6x
Dividend Yield0.9%
Payout Ratio26.2%
Executive SummarySituation: Current price is $228.05 versus fair value $221.88 (-2.7% expected return), and valuation confidence is stable. Debate: Bull case depends on Resolution of .web TLD Legal Proceedings A final hearing is scheduled for November 2025. Bear case centers on Regulatory Intervention and Pricing Freeze The biggest threat is a permanent impairment of the moat through government intervention that freezes .com pricing or mandates a competitive bidding process for the registry. Conclusion: Recommendation is Unclear; maintain no position until reliability and catalyst evidence improve.
Bull Case
VeriSign is an inflation-protected monopoly with the contractual right to raise .com prices by 7% annually in four out of every six years. Its aggressive 'Cannibal' strategy has reduced shares by 18.4% since 2021, driving 59% EPS growth despite modest top-line expansion.
Bear Case
Regulatory ceiling risk remains the primary threat, as the U.S. government could freeze price increases or open the .com registry to competitive bidding. Additionally, heavy insider selling of $1.25 billion over the past year suggests management may view the current valuation as full.
Key Catalysts
Near-Term (0-6 months)Impact: High
Resolution of .web TLD Legal Proceedings A final hearing is scheduled for November 2025. A favorable ruling would allow VeriSign to finally...
Long-Term (18+ months)Impact: Critical
October 2026 .com Price Increase The current registry agreement allows for a 7% price increase in October 2026. Execution of this hike would...
Long-Term (18+ months)Impact: Moderate
VeriSign is relevant for analysis now due to the recent initiation of its dividend and the upcoming critical legal resolution for the .web T...
Primary Risks
Concern: High
Regulatory Intervention and Pricing Freeze The biggest threat is a permanent impairment of the moat through government intervention that fre...
Concern: Medium
Heavy Insider Divestment Significant selling by the CEO and other executives may signal that internal leadership believes the stock is fully...
Concern: Medium
The stewardship verdict is strong but tempered by ownership dynamics. The Board is highly independent and includes seasoned capital allocato...
Recent Activity
2026-02-06SEC Filing (8-K)
-7.60%VeriSign reports Q4/FY 2025 revenue of $425M/$1.66B, net income of $206M/$826M, and increases dividend to $0.81
2025-07-25SEC Filing (8-K)
+6.67%VeriSign reports Q2 2025 revenue of $410M, net income of $207M, and approves $0.77 dividend
2025-04-25SEC Filing (8-K)
+8.00%VeriSign reports Q1 2025 revenue of $402M, net income of $199M, and initiates $0.77 quarterly dividend
2023-10-27SEC Filing (8-K)
-5.82%VeriSign reports Q3 2023 revenue of $376M, net income of $188M, and 173.9M .com/.net domains
2022-10-28SEC Filing (8-K)
+9.46%VeriSign reports Q3 2022 revenue of $357M, net income of $169M, and 174.2M .com/.net domains
Valuation Table
9.8/10Decision Grade
Scenario Range
$155
Bear
$213
Base
$253
Bull
$228