US Equities Analysis

VRSK — Verisk Analytics

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 45.0%
Profit Margins 29.34%
Return on Assets 18.0%
Free Float 0.13B
Dividend Yield 1.10%
Short Int % Utilisation 7.31%

2.2 Growth

Metric Value
Revenue Growth 3.9%
Free Cash Flow 0.94B
EBITDA 18.63 (Ratio)
Enterprise Value 28.09B
EV/Revenue 9.06
EV/EBITDA 18.63

Revenue growth of 3.9% suggests mature or challenged top-line momentum.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -27.86%
Risk / Std Dev (Ann.)* 34.57%
1-Year Price Return* -31.56%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $181.67
52-Week Range $155.94 – $276.19
Observation Count 248 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $3.07B
Prior annual revenue $2.88B
EBIT $1.34B
Tax rate 22.45%
NOPAT = EBIT × (1 − tax rate) $1.04B
Forecast start-growth basis 6.63%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $1.04B
Add: depreciation & amortisation $326.70M
Less: capital expenditure -$244.10M
Less/(add): working-capital cash-flow movement $36.10M
Current unlevered FCFF $1.16B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 6.63% $1.11B $348.35M -$260.28M $38.49M $1.24B $1.19B
2 5.60% $1.17B $367.85M -$298.10M $40.65M $1.28B $1.15B
3 4.56% $1.23B $384.64M -$336.01M $42.50M $1.32B $1.10B
4 3.53% $1.27B $398.22M -$373.05M $44.00M $1.34B $1.04B
5 2.50% $1.30B $408.18M -$408.18M $45.10M $1.35B $972.19M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.66
Cost of equity 8.36%
Pre-tax cost of debt 4.20%
WACC 7.49%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $27.65B
Implied terminal EV / EBITDA 13.26x
Terminal value as % of enterprise value 77.94%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $5.45B
Present value of terminal value $19.27B
Indicated enterprise value $24.72B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $24.72B
Less: gross interest-bearing debt $4.90B
Add: cash and equivalents $2.18B
Add: affiliate investments $0.00
Less: minority interests $800,000.00
Indicated common equity value $22.00B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 140,082,773.00
Share-count basis reported diluted weighted-average shares
Current market price $182.18
DCF indicative value per share $157.03
Indicative value vs. market price -13.81%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:53:25.607390 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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