• For investors considering whether Verisk Analytics at around US$201.75 represents fair value or a potential opportunity, this article focuses on what the current price might imply.
• The stock recently posted a 0.3% return over 7 days and 9.6% over 30 days, while the year-to-date return is an 8.7% decline and the 1-year return is a 28.7% decline.
• Recent headlines have highlighted Verisk Analytics as a data and analytics provider in the commercial services space, with attention on how its core offerings support insurance and risk-focused customers. This context helps frame why the share price can move as investors reassess the role and resilience of these services.
• Simply Wall St currently assigns Verisk Analytics a valuation score of 2 out of 6. That sets up a closer look at traditional valuation approaches such as discounted cash flow (DCF) analysis and valuation multiples, followed by a more comprehensive way to think about value later in the article.

Verisk Analytics scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Verisk Analytics Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a business could be worth today by projecting its future cash flows and then discounting those cash flows back to a present value.

For Verisk Analytics, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $1.19b. Analysts have provided forecast free cash flow estimates out to 2030, with Simply Wall St extending the projections further using its own growth assumptions. By 2030, the model uses a projected free cash flow of $1.54b, with ten year projections ranging from about $1.05b in 2026 to about $1.90b in 2035 in nominal terms.

When these projected cash flows are discounted back using the DCF model, the resulting intrinsic value estimate for Verisk Analytics is $233.33 per share. Compared with the recent share price of about $201.75, this implies the shares trade at roughly a 13.5% discount to that estimate, which indicates the stock is undervalued on this specific cash flow view.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Verisk Analytics is undervalued by 13.5%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks.

Approach 2: Verisk Analytics Price vs Earnings

For a profitable company, the P/E ratio is a practical way to gauge how much you are paying for each dollar of earnings. Investors usually accept a higher P/E when they expect stronger growth or see the business as lower risk, while slower growth or higher risk tends to justify a lower, more conservative P/E.

Verisk Analytics currently trades on a P/E of 30.64x. That is above the Professional Services industry average P/E of about 19.11x, but slightly below the peer group average of 31.97x, so the stock sits toward the higher end of the sector’s valuation range. To refine this view, Simply Wall St uses a “Fair Ratio”, which is the P/E that would be expected given factors such as earnings growth, industry, profit margin, market cap and company specific risks.

Because the Fair Ratio of 26.21x blends these company specific characteristics with its industry and size, it can be more informative than looking only at broad industry or peer averages. Comparing the Fair Ratio with the actual P/E suggests Verisk Analytics is trading above this adjusted benchmark, pointing to the shares being overvalued on this multiple based view.

Result: OVERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 20 top founder-led companies.

Upgrade Your Decision Making: Choose your Verisk Analytics Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives are Simply Wall St’s way for you to attach a clear story about Verisk Analytics to the numbers behind your assumed fair value, future revenue, earnings and margins. They link that story to a financial forecast and then to a fair value that you can easily compare with the current price to help judge when to buy or sell. All of this is within an accessible tool on the Community page that is used by millions of investors and automatically updates when new information such as news or earnings arrives. One investor might build a Verisk Analytics Narrative that points to a fair value near the more cautious analyst price target of US$258.00, while another might lean toward the optimistic end near US$340.00, yet both are using the same structure to turn their different views into clear, comparable numbers.

Do you think there's more to the story for Verisk Analytics? Head over to our Community to see what others are saying!

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.