VRSNNEUTRAL

EV/EBITDA

20.9x

Updated 488h ago

Sector Performance

75th percentile

VRSN

20.9x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

The current EV/EBITDA of 20.9x means that for every dollar of earnings before interest, taxes, depreciation, and amortization, the market values the company at roughly $20.90, reflecting how expensive the stock is relative to its operating cash flow.

Compared to sector peers, this multiple is well above the sector median of 14.4x, placing VRSN in the 77th percentile—indicating a premium valuation versus most peers. The metric has been stable over the last eight quarters, with no year-over-year data available and a quarter-over-quarter increase of +1.8%. A high EV/EBITDA combined with a stable trend suggests limited upside potential and lower margin of safety for investors seeking a bargain, as the stock already trades at a premium relative to its sector. This elevated and stable valuation supports the overall NEUTRAL verdict, as it reflects neither a compelling buying opportunity nor a clear sign of imminent weakness.

Frequently Asked Questions

What does the EV/EBITDA tell investors about VRSN?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are VRSN's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.