VeriSign, Inc. (NASDAQ:VRSN) maintained its current share price over the past couple of month on the NASDAQGS, with a relatively tight range of US$177 to US$192. However, does this price actually reflect the true 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's The Opportunity In VeriSign?

The stock seems fairly valued at the moment according to our valuation model. It's trading around 3.8% below our intrinsic value, which means if you buy VeriSign today, you'd be paying a fair price for it. And if you believe the company's true value is $198.70, then there's not much of an upside to gain from mispricing. Furthermore, VeriSign's low beta implies that the stock is less volatile than the wider market.

What does the future of VeriSign look like?

Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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 negative earnings growth of -0.2%, which doesn't help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? Currently, VRSN appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you've been keeping tabs on VRSN for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there's less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven't considered today, which can help crystalize your views on VRSN should the price fluctuate below its true value.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. When we did our research, we found 3 warning signs for VeriSign (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

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.