Latest Ratios: P/E Ratio 29.4x · EV/EBITDA 21.9x · ROE N/A. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $23.8B | $22.5B | $20.3B | $21.3B | $22.2B | $28.5B | $25.0B | $22.9B | $18.2B | $14.2B | $9.8B |
| Enterprise Value | $25.3B | $24.0B | $21.9B | $22.9B | $23.6B | $30.0B | $26.3B | $24.2B | $19.6B | $16.2B | $11.4B |
| P/E Ratio → | 29.41 | 27.58 | 25.87 | 26.07 | 32.92 | 36.26 | 30.61 | 37.41 | 31.22 | 31.10 | 22.24 |
| P/S Ratio | 14.34 | 13.58 | 13.05 | 14.28 | 15.57 | 21.45 | 19.72 | 18.61 | 14.97 | 12.20 | 8.58 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 22.24 | 21.06 | 23.24 | 26.38 | 27.61 | 37.75 | 36.33 | 32.12 | 27.53 | 21.75 | 19.66 |
| P/OCF | 21.78 | 20.62 | 22.52 | 24.97 | 26.70 | 35.27 | 34.17 | 30.41 | 26.07 | 20.22 | 14.67 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 14.48 | 14.07 | 15.32 | 16.57 | 22.62 | 20.82 | 19.65 | 16.15 | 13.87 | 10.01 |
| EV / EBITDA | 21.92 | 20.82 | 20.01 | 21.90 | 23.85 | 32.83 | 30.26 | 28.40 | 24.05 | 21.32 | 15.35 |
| EV / EBIT | 22.53 | 21.04 | 19.98 | 21.75 | 24.71 | 34.70 | 31.35 | 28.50 | 23.33 | 22.07 | 16.48 |
| EV / FCF | — | 22.45 | 25.06 | 28.31 | 29.38 | 39.83 | 38.36 | 33.92 | 29.69 | 24.73 | 22.95 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 88.2% | 88.2% | 87.7% | 86.8% | 85.9% | 85.5% | 85.8% | 85.3% | 84.2% | 83.4% | 82.6% |
| Operating Margin | 67.7% | 67.7% | 67.9% | 67.0% | 66.2% | 65.3% | 65.2% | 65.5% | 63.2% | 60.7% | 60.1% |
| Net Profit Margin | 49.8% | 49.8% | 50.4% | 54.8% | 47.3% | 59.1% | 64.4% | 49.7% | 47.9% | 39.2% | 38.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | — | — |
| ROA | 60.4% | 60.4% | 49.8% | 47.0% | 36.3% | 41.8% | 45.0% | 32.5% | 24.0% | 17.3% | 18.8% |
| ROIC | — | — | — | — | 865.7% | 422.1% | 16055.9% | — | 158.5% | 94.9% | 102.5% |
| ROCE | — | — | 485.5% | 170.0% | 123.6% | 102.7% | 98.9% | 86.9% | 65.4% | 64.5% | 82.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 1.56 | 1.56 | 1.65 | 1.72 | 1.81 | 1.95 | 2.06 | 2.10 | 2.19 | 3.18 | 2.51 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 1.29 | 1.29 | 1.46 | 1.49 | 1.44 | 1.71 | 1.60 | 1.51 | 1.75 | 2.57 | 2.20 |
| Debt / FCF | — | 1.39 | 1.82 | 1.93 | 1.77 | 2.07 | 2.03 | 1.80 | 2.16 | 2.98 | 3.28 |
| Interest Coverage | 14.81 | 14.81 | 14.57 | 13.97 | 12.69 | 10.40 | 9.32 | 9.37 | 7.32 | 5.37 | 6.00 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.49 | 0.49 | 0.43 | 0.83 | 0.93 | 1.18 | 1.23 | 1.32 | 1.39 | 1.57 | 1.21 |
| Quick Ratio | 0.49 | 0.49 | 0.43 | 0.83 | 0.93 | 1.18 | 1.23 | 1.32 | 1.39 | 1.57 | 1.21 |
| Cash Ratio | 0.44 | 0.44 | 0.39 | 0.78 | 0.88 | 1.12 | 1.18 | 1.26 | 1.34 | 1.55 | 1.18 |
| Asset Turnover | — | 1.25 | 1.11 | 0.85 | 0.82 | 0.67 | 0.72 | 0.66 | 0.63 | 0.40 | 0.49 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 3.28 | 1.83 | 3.32 | 2.07 | 3.56 | 2.37 | 5.14 | 3.15 | 3.59 | 4.17 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | 1.0% | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 26.1% | 26.1% | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.4% | 3.6% | 3.9% | 3.8% | 3.0% | 2.8% | 3.3% | 2.7% | 3.2% | 3.2% | 4.5% |
| FCF Yield | 4.5% | 4.7% | 4.3% | 3.8% | 3.6% | 2.6% | 2.8% | 3.1% | 3.6% | 4.6% | 5.1% |
| Buyback Yield | 3.8% | 4.0% | 6.0% | 4.2% | 4.7% | 2.5% | 3.1% | 3.4% | 3.5% | 4.4% | 6.8% |
| Total Shareholder Yield | 4.7% | 4.9% | 6.0% | 4.2% | 4.7% | 2.5% | 3.1% | 3.4% | 3.5% | 4.4% | 6.8% |
| Shares Outstanding | — | $93M | $98M | $104M | $108M | $112M | $115M | $119M | $123M | $124M | $129M |
Regulatory contract renewal uncertainty
According to current market data, VeriSign trades at a forward P/E of 25.99, which, when compared to the broader software sector, suggests investors are pricing the company as a stable, bond-proxy utility rather than a high-growth technology entity, despite the inherent risks of its regulatory-dependent revenue model.
The elevated P/E ratio relative to historical norms implies that the market is willing to pay a premium for the predictability of VeriSign's toll-booth cash flows. However, the PEG ratio of 6.45 indicates that this valuation may be disconnected from the company's actual organic growth prospects, which are increasingly reliant on price hikes rather than volume expansion.
As reported in recent financial statements, VeriSign maintains a robust net margin consistently near 50%, a figure that underscores the company's unique operational leverage as the sole registry operator for .com and .net domains, effectively insulating its bottom line from the inflationary pressures impacting other technology firms.
The stability of these margins, supported by an 88% gross margin, highlights the minimal variable costs associated with the registry business. Investors should monitor whether these margins can be sustained if geopolitical or regulatory shifts force a change in the current pricing power dynamics that currently underpin the company's profitability.
Based on the provided quarterly data, VeriSign's asset turnover remains low at approximately 0.30, which is characteristic of a business model that requires minimal physical infrastructure investment to maintain its dominant market position as the authoritative directory for the global internet root zone.
The lack of significant inventory or complex working capital requirements allows the company to operate with high efficiency despite the low turnover ratio. This suggests that the company's primary operational focus is on maintaining 100% uptime rather than optimizing asset utilization, which is a structural reality of its utility-like status.
As documented in recent SEC filings, VeriSign's debt-to-EBITDA ratio of approximately 6.1x reflects a deliberate capital allocation strategy that prioritizes aggressive share repurchases over balance sheet liquidity, resulting in a negative shareholders' equity position that warrants careful scrutiny by long-term investors concerned with solvency.
While the company's interest coverage ratio of 15.5x suggests that debt service remains comfortable, the reliance on leverage to fund buybacks creates a structural vulnerability. This strategy appears to be designed to artificially support EPS growth, potentially masking the underlying maturation of the core domain registration business.
The most commonly misapplied metric for VeriSign is the Return on Equity (ROE), which, as noted in recent financial disclosures, is rendered mathematically meaningless by the company's persistent negative shareholders' equity resulting from years of aggressive share buybacks and debt-funded capital returns to shareholders.
Analysts should instead focus on Return on Invested Capital (ROIC) or Free Cash Flow yield to assess the true economic returns of the business. Relying on ROE in this context provides a distorted view of performance and fails to capture the company's actual ability to generate cash from its core registry assets.
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying VRSN stock.
VeriSign, Inc.'s current P/E ratio is 29.4x. The historical average is 27.2x. This places it at the 55th percentile of its historical range.
VeriSign, Inc.'s current EV/EBITDA is 21.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.9x.
Based on historical data, VeriSign, Inc. is trading at a P/E of 29.4x. This is at the 55th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
VeriSign, Inc.'s current dividend yield is 0.90% with a payout ratio of 26.1%.
VeriSign, Inc. has 88.2% gross margin and 67.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
VeriSign, Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.