VeriSign Net Income vs. Price To Earning

VRSN Stock  USD 180.77  4.13  2.23%   
Considering VeriSign's profitability and operating efficiency indicators, VeriSign is yielding more profit at the present time then in previous quarter. It has a moderate chance of reporting better profitability numbers in December. Profitability indicators assess VeriSign's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1998-03-31
Previous Quarter
198.8 M
Current Value
201.3 M
Quarterly Volatility
1.2 B
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, VeriSign's Price To Sales Ratio is very stable compared to the past year. As of the 25th of November 2024, EV To Sales is likely to grow to 22.73, while Days Sales Outstanding is likely to drop 3.16. At this time, VeriSign's Net Income Per E B T is very stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.590.8679
Way Down
Slightly volatile
For VeriSign profitability analysis, we use financial ratios and fundamental drivers that measure the ability of VeriSign to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well VeriSign utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between VeriSign's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of VeriSign over time as well as its relative position and ranking within its peers.
  
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To learn how to invest in VeriSign Stock, please use our How to Invest in VeriSign guide.
Is Internet Services & Infrastructure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of VeriSign. If investors know VeriSign will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about VeriSign listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.131
Earnings Share
8.59
Revenue Per Share
15.467
Quarterly Revenue Growth
0.038
Return On Assets
0.4159
The market value of VeriSign is measured differently than its book value, which is the value of VeriSign that is recorded on the company's balance sheet. Investors also form their own opinion of VeriSign's value that differs from its market value or its book value, called intrinsic value, which is VeriSign's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because VeriSign's market value can be influenced by many factors that don't directly affect VeriSign's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between VeriSign's value and its price as these two are different measures arrived at by different means. Investors typically determine if VeriSign is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VeriSign's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

VeriSign Price To Earning vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining VeriSign's current stock value. Our valuation model uses many indicators to compare VeriSign value to that of its competitors to determine the firm's financial worth.
VeriSign is rated third in net income category among its peers. It is rated first in price to earning category among its peers . The ratio of Net Income to Price To Earning for VeriSign is about  30,969,697 . At this time, VeriSign's Net Income is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the VeriSign's earnings, one of the primary drivers of an investment's value.

VeriSign's Earnings Breakdown by Geography

VeriSign Price To Earning vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

VeriSign

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
817.6 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

VeriSign

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
26.40 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

VeriSign Price To Earning Comparison

VeriSign is currently under evaluation in price to earning category among its peers.

VeriSign Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in VeriSign, profitability is also one of the essential criteria for including it into their portfolios because, without profit, VeriSign will eventually generate negative long term returns. The profitability progress is the general direction of VeriSign's change in net profit over the period of time. It can combine multiple indicators of VeriSign, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-2.6 M-2.7 M
Operating IncomeB1.1 B
Income Before Tax976.5 MB
Total Other Income Expense Net-24.1 M-25.3 M
Net Income817.6 M858.5 M
Income Tax Expense158.9 M166.8 M
Net Income Applicable To Common Shares774.9 M487 M
Net Income From Continuing Ops817.6 M535.1 M
Non Operating Income Net Other14.3 M20.3 M
Interest Income46.1 M23.7 M
Net Interest Income-29.2 M-30.7 M
Change To Netincome40.6 M31.6 M
Net Income Per Share 7.91  8.30 
Income Quality 1.04  0.74 
Net Income Per E B T 0.84  1.26 

VeriSign Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on VeriSign. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of VeriSign position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the VeriSign's important profitability drivers and their relationship over time.

Use VeriSign in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if VeriSign position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in VeriSign will appreciate offsetting losses from the drop in the long position's value.

VeriSign Pair Trading

VeriSign Pair Trading Analysis

The ability to find closely correlated positions to VeriSign could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace VeriSign when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back VeriSign - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling VeriSign to buy it.
The correlation of VeriSign is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as VeriSign moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if VeriSign moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for VeriSign can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your VeriSign position

In addition to having VeriSign in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Large & Mid Caps ETFs Theme or any other thematic opportunities.
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When determining whether VeriSign offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of VeriSign's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Verisign Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Verisign Stock:
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To learn how to invest in VeriSign Stock, please use our How to Invest in VeriSign guide.
You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
To fully project VeriSign's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of VeriSign at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include VeriSign's income statement, its balance sheet, and the statement of cash flows.
Potential VeriSign investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although VeriSign investors may work on each financial statement separately, they are all related. The changes in VeriSign's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on VeriSign's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.