Verisk Analytics

Methodology

Verisk's fair value calculation works well given the company's consistent earnings growth driven by recurring subscription revenue from insurance analytics, catastrophe modeling, and risk assessment data services. The method captures Verisk's position as a data and analytics provider with high switching costs and predictable cash flows from essential insurance industry infrastructure. Fair value estimates are reliable because the business model emphasizes long-term data contracts with high retention and operates in a stable, needs-based end market.

Methodology

Verisk typically commands premium PEG ratios reflecting its position as a mission-critical data provider to the insurance industry, with strong pricing power and secular tailwinds from increasing risk complexity. The PEG framework works well for Verisk because growth rates are steady and supported by recurring revenue expansion, though investors should normalize for portfolio changes as the company divests non-core assets. Comparing Verisk's PEG to other data and analytics companies provides context for relative valuation within the information services sector.

Methodology

Verisk pays a minimal dividend, as management has historically prioritized reinvesting in data acquisition, analytics development, and strategic acquisitions to expand the risk assessment platform. PEGY therefore provides little incremental insight beyond PEG, as the yield component is not meaningful. For Verisk investors, evaluating data monetization, pricing trends, and customer retention matters far more than the modest dividend yield.