VRSK VRSK

The price pays for

• A 7.3% annual revenue growth rate over the next decade, which is what the reverse-DCF requires at a 9% discount rate.
• The continuation of a 38.8% free-cash-flow margin, meaning the price assumes Verisk keeps converting over a third of its revenue into cash.
• The current baseline of insurance industry demand, where catastrophe losses already exceed $100 billion annually.
• The existing 8% organic growth in subscription revenue, which makes up 83% of the business.
• The completion of the $2.35 billion AccuLynx acquisition, as ordered by the Delaware judge.

It declines to pay for