VERACYTE, INC.

VCYTdata completeness 88%15 fiscal years on file
The thesis, from the filings

VERACYTE, INC. earns about -2% on invested capital, below its ~9% cost of capital, but has diluted owners by 19% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $18.55 and $19.75 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$219.5M1$296.5M2$361.1M3$445.8M3$517.1M3
Net income−$75.6M4−$36.6M5−$74.4M6$24.1M6$66.4M6
Operating cash flow−$31.6M7$7.54M8$44.2M9$75.1M9$136.3M9
Capital expenditure$5.38M10$8.55M11$9.96M12$11.3M12$9.68M12
Free cash flow (derived)−$37M7−$1.01M8$34.3M9$63.8M9$126.6M9
Total debt$1.13M13$014
Cash & equivalents$173.2M15$154.2M16$216.5M17$239.1M17$362.6M17
Diluted shares67.9M71.5M72.6M78.2M80.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$162.53
your share of equity
Profit it earned you last year
$8.24
Free cash flow it threw off
$15.72
Debt you’d be carrying

10 shares is a claim on $162.53 of net worth that earned you $8.24 and generated $15.72 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-2% avg · 5y
FY21 -7%FY22 -3%FY23 -7%FY24 3%FY25 7%

It earned about -2% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+19% shares · 5y

Share count is up 19% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $18.55 and $19.75 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$19.75
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$63.8M
DCF · Growth Exit 5Y
$18.55
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$63.8M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$17.32
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $18.55
The three cases
Bear0.0%$15.82
Base5.0%$18.55
Bull10.0%$21.83

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001384101-24-000017 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001384101-25-000014 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001384101-26-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001384101-24-000017 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001384101-25-000014 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001384101-26-000010 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001384101-24-000017 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001384101-25-000014 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001384101-26-000010 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001384101-24-000017 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001384101-25-000014 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001384101-26-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001384101-22-000028 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001384101-23-000016 (LongTermDebtCurrent)
  15. 10-K · period ending 2021-12-31 · accession 0001384101-24-000017 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0001384101-25-000014 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0001384101-26-000010 (CashAndCashEquivalentsAtCarryingValue)