Verb Technology Company, Inc. (VERB) DCF Valuation & Fundamental Primer
Verb Technology Company, Inc. (VERB) currently trades at $14.50 with an enterprise value of $728.2M. Our proprietary institutional model rates Verb Technology Company, Inc. at 83/100 (Grade: A · High-Quality Compounder). The current market price prices in an implied 5-year revenue CAGR of 22.8% vs. historical growth of 19.5% (Fairly Priced to Fundamentals).
Institutional fundamental teardown of Verb Technology Company, Inc. (VERB) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
Verb Technology Company, Inc. (VERB) 3-Scenario DCF Valuation Range
Stress-test VERB's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: $14.50).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $14.30 -1% | $15.15 +5% | $16.15 +11% | $17.33 +20% | $18.75 +29% |
| 9.3% | $12.91 -11% | $13.58 -6% | $14.36 -1% | $15.25 +5% | $16.31 +12% |
| 10.0% | $11.76 -19% | $12.30 -15% | $12.92 -11% | $13.62 -6% | $14.43 -0% |
| 10.8% | $10.81 -25% | $11.25 -22% | $11.75 -19% | $12.31 -15% | $12.95 -11% |
| 11.5% | $9.99 -31% | $10.36 -29% | $10.77 -26% | $11.23 -23% | $11.74 -19% |
Institutional Software Quality Scorecard (83/100 · Grade A)
Strong fundamentals, above-average cash generation, and robust competitive positioning.
Elite deferred revenue float; FCF exceeds operating income by >20%
Standard software SBC dilution; modest equity transfer to employees
High-quality software margins with healthy balanced growth and profitability
Positive net cash cushion; self-funding operations with zero insolvency risk
Core Investment Strengths & Moats
- High-grade cash conversion: FCF is 237% of EBIT driven by upfront annual collections
- Healthy unit economics: 75.9% gross margin
- Net cash positive: $53.9M balance sheet buffer
Key Operational & Dilution Risks
Reverse-DCF Solver: What Growth is Priced Into VERB?
Market implies 22.8% annual revenue growth over next 5 years (34.1% dilution-adjusted), in line with company run-rate.
Headline Reverse-DCF ignores Stock-Based Compensation (14.3% of revenue) and annual share dilution (1.8%/yr). Accounting for both requires 34.1% 5-year revenue CAGR to justify $14.50/sh on a true per-share economic cash flow basis.
Verb Technology Company, Inc. (VERB) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $100.9M | $100.9M | $120.6M | $144.1M | $172.2M | $205.8M | $245.9M |
| Gross Profit | $76.6M | $76.6M | $91.5M | $109.4M | $130.7M | $156.2M | $186.6M |
| Operating Income (EBIT) | $11.3M | $11.3M | $13.5M | $16.1M | $19.3M | $23.0M | $27.5M |
| Stock-Based Compensation (SBC) | $14.4M | $14.4M | $17.2M | $20.6M | $24.6M | $29.4M | $35.2M |
| Unlevered Free Cash Flow (FCF) | $26.8M | $26.8M | $32.1M | $38.3M | $45.8M | $54.7M | $65.4M |
| SBC-Adjusted True Cash Flow | $12.4M | $12.4M | $14.8M | $17.7M | $21.2M | $25.3M | $30.2M |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = -29.4 + 0.80 × (Rule of 40) · R² = 80%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| Verb Technology Company, Inc. | VERB | $877.8M | $100.9M | 75.9% | 26.6% | 46.1% | 14.3% | 8.2× |
| ServiceNow | NOW | $152.61B | $10.98B | 79.2% | 31.1% | 54.2% | 15.9% | 13.9× |
| Workday, Inc. | WDAY | $50.35B | $8.00B | 75.0% | 27.4% | 43.9% | 19.0% | 6.4× |
| Salesforce | CRM | $217.10B | $37.90B | 77.2% | 32.8% | 42.8% | 8.4% | 5.8× |
| Datadog | DDOG | $46.05B | $2.68B | 80.8% | 31.1% | 57.7% | 21.3% | 17.4× |
| Snowflake Inc. | SNOW | $71.79B | $3.63B | 66.5% | 25.2% | 57.7% | 40.8% | 20.0× |
| Hubspot | HUBS | $19.89B | $2.63B | 85.0% | 21.3% | 52.7% | 19.2% | 7.7× |
| Peer Cohort Median Benchmark (N=6) | 78.2% | 29.2% | 53.5% | 19.1% | 10.8× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 8.2× | $823.9M | $877.8M | $14.50 | 0.0% |
| -20% Multiple Compression | 6.5× | $659.1M | $713.0M | $11.78 | -20.0% |
| -35% Multiple Compression | 5.3× | $535.6M | $589.4M | $9.74 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $504.5M | $558.4M | $9.22 | -38.8% |
Frequently Asked Questions: Verb Technology Company, Inc. (VERB) Valuation
What is Verb Technology Company, Inc. (VERB)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, Verb Technology Company, Inc. (VERB) has a Base Case implied value of $12.92 per share (with a Bear Case of $6.14 and a Bull Case of $22.28), compared to its current price of $14.50. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Verb Technology Company, Inc. (VERB)'s Rule of 40 score and Free Cash Flow margin?
Verb Technology Company, Inc. achieves a Rule of 40 score of 46.1%, combining a 19.5% revenue growth run-rate with a 26.6% TTM free cash flow margin on $100.9M in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.
What revenue growth rate is priced into VERB stock according to Reverse-DCF analysis?
At $14.50 per share (Enterprise Value of $823.9M), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 22.8%, compared to Verb Technology Company, Inc.'s historical CAGR of 19.5%. Overall market expectations are rated as "Fairly Priced to Fundamentals".
How does Verb Technology Company, Inc. compare to Software & Cloud Services software peers?
Verb Technology Company, Inc. (VERB) earns an institutional Software Quality Score of 83/100 (Grade A — High-Quality Compounder). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.
How does Stock-Based Compensation (SBC) impact Verb Technology Company, Inc. (VERB)'s valuation?
Verb Technology Company, Inc. recorded $14.4M in TTM stock-based compensation (14.3% of revenue). When treating SBC as a cash-equivalent compensation expense, Verb Technology Company, Inc.'s SBC-adjusted free cash flow yield is 1.4%, scoring 16/25 on our Shareholder Dilution Friction pillar.