Is It Too Late To Consider Buying VeriSign (VRSN) After Its 1-Year Rally?

Simply Wall St.01-22 02:31

If you are wondering whether VeriSign's share price still reflects fair value or if expectations have run ahead of the fundamentals, you are in the right place. VeriSign shares most recently closed at...

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VeriSign shares most recently closed at...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-vrsn/verisign/news/is-it-too-late-to-consider-buying-verisign-vrsn-after-its-1\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Too Late To Consider Buying VeriSign (VRSN) After Its 1-Year Rally?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Too Late To Consider Buying VeriSign (VRSN) After Its 1-Year Rally?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-22 02:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nasdaq-vrsn/verisign/news/is-it-too-late-to-consider-buying-verisign-vrsn-after-its-1><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether VeriSign's share price still reflects fair value or if expectations have run ahead of the fundamentals, you are in the right place. VeriSign shares most recently closed at...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-vrsn/verisign/news/is-it-too-late-to-consider-buying-verisign-vrsn-after-its-1\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2506951875.HKD","symbol_name":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nasdaq-vrsn/verisign/news/is-it-too-late-to-consider-buying-verisign-vrsn-after-its-1","article_id":"2605435677","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8030001-choice1-main-header/1585186837196"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nasdaq-vrsn/verisign/news/is-it-too-late-to-consider-buying-verisign-vrsn-after-its-1","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2605435677","pubTimestamp":1769020282,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether VeriSign's share price still reflects fair value or if expectations have run ahead of the fundamentals, you are in the right place.\nVeriSign shares most recently closed at US$248.12, with returns of 0.7% over the last 7 days, 1.7% over the last 30 days, 3.2% year to date and 18.9% over 1 year, while the 3 and 5 year returns sit at 16.1% and 27.7% respectively.\nThese price moves sit against a backdrop of ongoing attention on domain infrastructure providers and the...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2506951875.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) ACC","BK4559":"巴菲特持仓","LU2506952097.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) ACC","BK4588":"碎股","LU2506951958.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) INC","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU0950375773.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC A","LU0426417589.USD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (USD) INC","LU2506952170.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) INC","LU0234570918.USD":"高盛全球核心股票组合Acc Close","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LU1121112475.USD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (USDHDG) ACC","BK4532":"文艺复兴科技持仓","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","LU0426412945.USD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (USD) ACC","BK4116":"互联网服务与基础架构","LU0994945656.USD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (USD) INC 2","BK4585":"ETF&股票定投概念","LU1043141396.HKD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (HKD) ACC","VRSN":"威瑞信","LU0823417737.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC","LU1043141123.HKD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (HKD) INC 2"},"translate_title":"VeriSign(VRSN)经过一年的上涨后，现在考虑购买是否为时已晚？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"VRSN":1.5},"content_text":"If you are wondering whether VeriSign's share price still reflects fair value or if expectations have run ahead of the fundamentals, you are in the right place. VeriSign shares most recently closed at US$248.12, with returns of 0.7% over the last 7 days, 1.7% over the last 30 days, 3.2% year to date and 18.9% over 1 year, while the 3 and 5 year returns sit at 16.1% and 27.7% respectively. These price moves sit against a backdrop of ongoing attention on domain infrastructure providers and the role they play in the broader internet ecosystem. Investor interest has often focused on how stable cash generation, competitive position and contract terms could affect what investors are willing to pay for the stock. Right now, VeriSign scores 2/6 on our valuation checks, which you can see in detail on our valuation scorecard. Next, we will compare several valuation approaches before finishing with a different way of thinking about value that many investors overlook.  VeriSign scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: VeriSign Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a business might be worth today by projecting its future cash flows and then discounting those back to a present value. For VeriSign, the model used is a 2 Stage Free Cash Flow to Equity approach, based on last twelve months free cash flow of about US$998.1 million. Simply Wall St has one explicit analyst free cash flow estimate of US$1,033 million for 2026, with further years extrapolated using modest annual growth assumptions out to 2035, all in US$ terms. When these projected cash flows are discounted back and summed, the model arrives at an estimated intrinsic value of US$185.34 per share. Compared with the recent share price of US$248.12, the DCF output points to the stock trading at a 33.9% premium to this estimate. This indicates that the shares screen as overvalued on this cash flow based view. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests VeriSign may be overvalued by 33.9%. Discover 878 undervalued stocks or create your own screener to find better value opportunities. VRSN Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for VeriSign. Approach 2: VeriSign Price vs Earnings For profitable companies like VeriSign, the P/E ratio is a useful way to think about value because it links what you pay directly to the earnings the business is currently generating. The level of P/E investors are usually comfortable with often reflects what they expect for future growth and how risky they feel those earnings are, so higher growth or lower perceived risk can justify a higher P/E, and vice versa. VeriSign currently trades on a P/E of 28.36x, compared with the IT industry average of about 27.35x and a peer group average of 42.04x. Simply Wall St also calculates a proprietary “Fair Ratio” for the stock of 28.24x. This Fair Ratio is designed to be a more tailored benchmark than a simple peer or industry comparison, because it incorporates factors such as VeriSign’s earnings growth profile, its industry, profit margins, market cap and company specific risks. Putting this together, VeriSign’s actual P/E of 28.36x sits very close to the Fair Ratio of 28.24x. This points to the shares trading at around a reasonable price on this earnings based view. Result: ABOUT RIGHT NasdaqGS:VRSN P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1445 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your VeriSign Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way for you to attach your own story about VeriSign to the numbers behind its fair value, revenue, earnings and margin assumptions. A Narrative connects three things in one place: what you believe about the business, the financial forecast that flows from that belief, and the fair value estimate that drops out of that forecast. On Simply Wall St, Narratives sit inside the Community page, where millions of investors can set their own assumptions and instantly see a fair value they can compare with the current share price to help decide whether they see VeriSign as a potential buy, hold or sell. Because Narratives update automatically when fresh information such as news or earnings is added to the platform, your view of VeriSign can stay aligned with the latest data without you rebuilding a model from scratch. For example, one VeriSign Narrative might assume relatively cautious revenue growth and margin pressure that leads to a lower fair value estimate than the current price, while another assumes stronger long term demand for domain infrastructure and resilient margins that results in a higher fair value than today’s share price. Do you think there's more to the story for VeriSign? Head over to our Community to see what others are saying! NasdaqGS:VRSN 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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