Let's talk about the popular VeriSign, Inc. (NASDAQ:VRSN). The company's shares saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$188 and falling to the lows of US$169. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether VeriSign's current trading price of US$180 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at VeriSign's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

What Is VeriSign Worth?

The stock seems fairly valued at the moment according to our valuation model. It's trading around 13% below our intrinsic value, which means if you buy VeriSign today, you'd be paying a reasonable price for it. And if you believe the company's true value is $208.45, then there isn't much room for the share price grow beyond what it's currently trading. What's more, VeriSign's share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will VeriSign generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of VeriSign, it is expected to deliver a relatively unexciting earnings growth of 0.7%, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in VRSN's future outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you've been keeping an eye on VRSN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 3 warning signs for VeriSign you should be mindful of and 1 of these is a bit unpleasant.

If you are no longer interested in VeriSign, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.