VeriSign collects an average fixed fee of $6.30 each time individuals or businesses register a new .com or .net domain name, or renew the registration of an existing domain name. The Trefis estimate for VeriSign’s stock is $30.87, 62% of which comes from its .com and .net domain registration business. In comparison, VeriSign’s market price was $19.86 on Friday’s close.
VeriSign has agreements with the Internet Corporation for Assigned Names and Numbers (ICANN) that make it the exclusive registry of .com and .net domains. Such agreements are periodically reviewed, and VeriSign has a great record of successfully getting them renewed. Based on past record and after reviewing the agreements, we believe there is minimal risk that VeriSign may not be able to renew or be forced to accept non-exclusive rights for these domains.
VeriSign’s Average Domain Name Fee has trended up from an average of $5.20 in 2005 and is expected to continue increasing due to scheduled fee increases under agreements with ICANN.
Within VeriSign’s content on our platform, you can see how VeriSign’s stock price would be impacted if a more competitive domain name environment lead to declines in the Average Domain Name Fee.
