Verisign (VRSN)
Forward P/E is 28.62x against a peer median of 13.87x, a ratio of 2.06x — more than double the peer rate — while latest-quarter revenue grew only 5.7% year over year (PRIMARY, EDGAR), the joint-slowest pace in this batch, and no PEG is available to argue the premium is growth-funded. This is not labelled a bubble: the trailing P/E of 32.54x shows substantial real earnings rather than thin or absent profits, so the extreme-earnings test for a bubble fails even though the ratio test passes. The price-to-sales ratio of 15.75x on 5.7% growth underlines how much permanence and pricing power the price assumes. Delivered demand check: the Internet services & infrastructure group's median latest-quarter revenue growth was 5.7% year over year (SEC filings) — demand steady, not rising, so nothing in delivered demand pays for a 2.06x premium.
What would change this label: Moves toward FAIRLY PRICED if the price falls to a forward P/E near ~16x (a ratio near 1.15x) at unchanged estimates, or if revenue growth accelerates above +12% year over year, which would begin to earn the multiple. Moves toward BUBBLE territory only if the ratio rises above ~1.75x against a richer peer median with growth still in single digits and trailing earnings turning thin; the OVERVALUED case strengthens if revenue growth falls below +3% year over year while the forward P/E stays above ~28x.
Verisign runs the .com and .net address registries — a very profitable, very stable business whose sales grew only about 6% in a year. Yet its shares cost about 29 times next year's expected profit, more than double the roughly 14 times of its small comparison group, and nearly 16 times its sales. Safe business, expensive shares: overvalued, though its real profits keep it out of bubble territory.
Both lines start at 100 on 2020-09-01. Over the full window Verisign returned +40.90% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Verisign: -38.9% (2021-12-29 to 2022-06-16). Source: Nasdaq official daily history.
What the label rests on
Forward P/E is 28.62x against a peer median of 13.87x, a ratio of 2.06x — more than double the peer rate — while latest-quarter revenue grew only 5.7% year over year (PRIMARY, EDGAR), the joint-slowest pace in this batch, and no PEG is available to argue the premium is growth-funded. This is not labelled a bubble: the trailing P/E of 32.54x shows substantial real earnings rather than thin or absent profits, so the extreme-earnings test for a bubble fails even though the ratio test passes. The price-to-sales ratio of 15.75x on 5.7% growth underlines how much permanence and pricing power the price assumes. Delivered demand check: the Internet services & infrastructure group's median latest-quarter revenue growth was 5.7% year over year (SEC filings) — demand steady, not rising, so nothing in delivered demand pays for a 2.06x premium. The company’s forward P/E is 28.6× against a peer median of 13.9×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Internet services & infrastructure group's median latest-quarter revenue growth was 5.7% year over year (SEC filings) — demand steady. Latest-quarter sales growth was +5.7% versus a year earlier (SEC filings).
| Company | Price (Oct 28, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Verisign (VRSN) | $302.28 | 28.6× | 32.5× |
| AKAM | $99.00 | 15.1× | 36.0× |
| GDDY | $106.08 | 12.7× | 15.8× |
| Peer median | 13.9× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
This company does not report a gross-profit line in its SEC facts (normal for banks, payment networks and some health insurers), so profit is shown as net income instead — gross margin is marked UNVERIFIED-absent rather than estimated.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Sep 2026 2026-09-30 | $443M | — | $213M | — | $261M |
| Q/E Jun 2026 2026-06-30 | $435M | — | $216M | — | $213M |
| Q/E Mar 2026 2026-03-31 | $429M | — | $214M | — | $265M |
| Q/E Dec 2025 2025-12-31 | $425M | — | $206M | — | $285M |
| Q/E Sep 2025 2025-09-30 | $419M | — | $213M | — | $303M |
| Q/E Jun 2025 2025-06-30 | $410M | — | $207M | — | $195M |
| Q/E Mar 2025 2025-03-31 | $402M | — | $199M | — | $286M |
| Q/E Dec 2024 2024-12-31 | $395M | — | $192M | — | $222M |
| Q/E Sep 2024 2024-09-30 | $391M | — | $201M | — | $248M |
| Q/E Jun 2024 2024-06-30 | $387M | — | $199M | — | $151M |
| Q/E Mar 2024 2024-03-31 | $384M | — | $194M | — | $254M |
| Q/E Dec 2023 2023-12-31 | $380M | — | $265M | — | $199M |
The last twelve reported quarters. Full 25-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | VERISIGN INC/CA |
| Chief executive | D. James Bidzos (source: https://www.fool.com/coverage/filings/2026/09/29/verisign-s-ceo-dumps-3-300-shares-for-usd979-000-in-a-discretionary-transaction/) |
| Sector | Technology — Internet Services & Infrastructure — operates the .com and .net domain-name registries |
| Share price (Oct 28, 2026) | $302.28 |
| Market value (market cap) | $27.3B — share price times shares outstanding of 89,700,000 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest)) |
| Sales, last twelve months | $1.7B |
| Net income, last twelve months | $850M |
| Free cash flow, last twelve months | $1.0B |
| Latest reported quarter | Q/E Sep 2026 (of 25 quarters in the data pack) |
| Six-year price return vs S&P 500 | +40.90% vs +118.28% |
| Worst peak-to-trough fall | -38.9% (2021-12-29 to 2022-06-16) |
What we could not verify
- Gross profit / gross margin: not tagged as a standalone line in this company's EDGAR company facts (common for banks, payment networks and some healthcare payers) — shown as UNVERIFIED-absent; the page charts revenue and net income instead.
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
- PEG Ratio shown as n/a on the statistics page, recorded as null.
- The brief's peer set for this ticker contains only two peers (AKAM, GDDY) rather than the standard five, so the peer median of 13.87x rests on a thin comparison set; Verisign trades at more than double each named peer's forward multiple individually, but the evidence base is thinner than for other names in this batch.
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0001014473.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0001014473.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/VRSN/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.