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Qi Jie asked 2 years ago

Hi, I saw the video for free cash flow to equity and went to check out more about VeriSign. Since equity is negative how do we interpret its ROE? 
Also, I suppose their senior notes is counted as debt which is close to their total assets. The interest is ranging from 4.6% to 5.2% and maturity year of 2023 – 2027. However, with their strength of generating so much cash flow every year, I suppose this is not much of a worry?
On top of this, is there any info I need to take note for VeriSign? Seems like a very good company and just need to wait for the right time to purchase it. 
Thank you
 

1 Answers
Victor Chng answered 2 years ago

Hi Qi Jie,
 
It is hard to interpret their ROE since it is negative. 
 
You are right that the debt level is not to be worried due to their strong generation of cash flow. 
 
You can take note of their growth as it is not as fast as the past. Hence, paying the right price is super important.

Qi Jie replied 2 years ago

Noted on that, I suppose PCFO and PE seems to be a good way to value the company? Maybe PEG as well?

Victor Chng replied 2 years ago

You can just use PCFO and PE. PEG is not applicable for them since they are not really growing that fast.

Qi Jie replied 2 years ago

Ok sure, tks alot Victor!

Victor Chng replied 2 years ago

welcome :)