Medical - Healthcare Information Services · NYSE
Current Price
$158.22
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Veeva Systems Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Veeva Systems Inc. provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, the Middle East, Africa, and Latin America. The company offers Veeva Commercial Cloud, a suite of software, data, and analytics solutions, which include Veeva customer relationship management (CRM) and Veeva Medical CRM, Veeva CLM, Veeva CRM MyInsights, Veeva CLM, Veeva CRM Approved Email, Veeva CRM Engage, Veeva Align, Veeva CRM Events Management, Veeva Nitro, Veeva OpenData, Veeva Link, Veeva Network, Veeva Crossix, Veeva Data Cloud, and MyVeeva for Patients; and Veeva Vault, a cloud-based enterprise content and data management applications for managing commercial functions, including sales and marketing, and medical content and communications, as well as research and development functions, such as clinical, regulatory, quality, and safety. It also provides professional and support services in the areas of implementation and deployment planning and project management; requirements analysis, solution design, and configuration; systems environment management and deployment services; services focused on advancing or transforming business and operating processes related to Veeva solutions; technical consulting services related to data migration and systems integrations; training on its solutions; and ongoing managed services that include outsourced systems administration. The company was formerly known as Verticals onDemand, Inc. and changed its name to Veeva Systems Inc. in April 2009. Veeva Systems Inc. was incorporated in 2007 and is headquartered in Pleasanton, California.
ROIC (TTM)
9.5%
ROE (TTM)
13.4%
FCF Yield
5.34%
Based on trailing twelve-month data, VEEV shows a free cash flow per share of N/A and a ROIC of 9.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 5.34% are important context metrics when evaluating VEEV's stock valuation relative to peers.
The intrinsic value of VEEV depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether VEEV is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $158.22. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Veeva Systems Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Medical - Healthcare Information Services industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting VEEV's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Veeva Systems Inc., this means projecting how much free cash flow the Medical - Healthcare Information Services will produce over the next 5-10 years, then discounting those amounts to today's dollars. VEEV's ROIC of 9.5% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For VEEV, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
