Verisign (VRSN) Financial Forecast Calculator
Interactive 5-year forecast and DCF for Verisign. Adjust revenue growth, gross margin, capex intensity, WACC, and terminal growth - see revenue, free cash flow, and enterprise value update in real time. Seeded from Verisign’s most recent SEC filings.
Assumptions
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Keep iterating on the Verisign forecast in Excel. The downloadable sample has every assumption you see here plus a fully integrated income statement, balance sheet, cash flow, and debt schedule - five years of SEC historicals and live formulas in a fully editable workbook.
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Frequently asked
What does Verisign do and what is its business model?+
Verisign is the global provider of domain name registry services, acting as the sole authoritative registry for the .com and .net top-level domains. It operates a monopolistic, asset-light business model under exclusive contracts, generating 100% of its revenue from Registry Services. This results in an exceptionally strong competitive position and high operating margins.
How does Verisign generate its revenue?+
Verisign generates revenue primarily from Registry Services, driven by the Average Domain Name Base multiplied by the Average Revenue Per Domain (ARPU). Growth is influenced by new domain registrations, renewal rates of existing domains, and contractual price increases. Revenue is recognized ratably over the term of the registration, as customers pay upfront for multi-year services.
What are Verisign's typical operating margins?+
Verisign enjoys exceptionally strong operating margins, which typically exceed 67% due to its effective monopoly and asset-light business model. The financial model assumes COGS as a percentage of revenue at approximately 14.13%. This high profitability contributes significantly to its cash flow generation capacity.
What is Verisign's capital expenditure strategy?+
Verisign's capital expenditure (Capex) historically ranges from 2% to 4% of revenue and is almost entirely maintenance and security-driven. These investments ensure 100% uptime of its root servers and registry, including ongoing investments in AI-related infrastructure and network security. The financial model assumes Capex as a percentage of revenue at approximately 3.14%.
How does Verisign's negative working capital position impact its finances?+
Verisign benefits from a massive negative working capital position because customers pay upfront for multi-year domain registrations. This provides the company with an interest-free float, enhancing its cash flow generation capacity. The financial model assumes Net Working Capital as a percentage of revenue at -0.5.
Can I download a financial model for Verisign and what is its forecast horizon?+
Yes, a downloadable Excel model is available for Verisign to evaluate its equity value and cash flow generation capacity. This model focuses on the company's predictable revenue streams and its ability to fund share repurchases and dividends. The forecast horizon for the model is from FY2026 to FY2030.
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