The fair value of Verisk Analytics Inc (VRSK) is $139.88. The current price ($309.5) indicates stock is overvalued by 54.8%.
* Note: Prices are in Million (M) USD.
Description:
Verisk Analytics, Inc. is an American data analytics and risk assessment firm based in Jersey City, New Jersey, with customers in insurance, natural resources, financial services, government, and risk management sectors. The company uses proprietary data sets and industry expertise to provide predictive analytics and decision support consultations in areas including fraud prevention, actuarial science, insurance coverage, fire protection, catastrophe and weather risk, and data management.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $292 M
Debt : $3,250 M
EBITDA : $1,370 M
Net Debt (Debt - Cash): $2,958 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Consulting Services
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 41.49
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $529 M
Average Revenue: $1,951 M
Free Cash Flow to Revenue : 27 %
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $2,882 M
Revenue 4 Years Ago (2020-12-31): $2,785 M
Last 5 Years Average Revenue Growth: 1%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $143 M
Share Count 5 Years Ago (2020-12-31): $165 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $7.46
Dividend Per Share (DPS): $2
Payout Ratio: 21%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 139%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $310
52-Week Low: $236
Threshold Price (15% Above 52-Week Low): $271
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $41,130 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 22 points to above Verisk Analytics Inc (VRSK) stock.
Twenty Years Avg PE 34, Fair Value PE 15, Industry Based PE is 18 and Growth based PE is 8. Based on these all values average assigned is 18.75.
Value-Trades has assined P/E value 18.75. Since current year earning per share is $7.46.
The fair value of Verisk Analytics Inc (VRSK) stock should be (18.75 x $7.46) = $139.88
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