QS Research · Michael Burry's Scion Capital analyst template · 2006
VEEVA SYSTEMS INC (VEEV)
As of 2026-11-08 · 12/15 boxes filled from SEC filings and market data
Conclusion: WATCH
Conviction medium · base case +0% · downside -26% · upside +6%
The market is not missing growth: at the $303.73 close (N1) VEEV already trades at 12.13x EV/Sales (N19), 40.5x EV/EBIT (N20) and 48.5x P/E (N22). My base case uses the section-13 TTM to Jul 31, 2026: 12.13 x $3.46B revenue (N9) = $41.97B EV, plus $7.24B cash (N15), divided by 161.91M shares (N5) = about $304, essentially today's price. Downside assumes a 30% revenue loss from CRM migration/competition at the same multiple (S27, S31): 12.13 x $2.42B = $29.4B EV + $7.24B = $36.6B / 161.91M = about $226 (-25%). Upside uses FY2027 guided revenue midpoint $3.6845B (S32) at the same 12.13x: $44.7B EV + $7.24B = $51.9B / 161.91M = about $321 (+6%). That leaves no margin of safety for a deep-value long and no rules-based short, so watch Q3 delivery and CRM/AI conversion.
Key numbers
- Share price: $303.73
- Market cap: $49.18B
- Latest financial period: TTM to Jul 31, 2026
- Revenue (TTM): $3.46B
- P/E (TTM): 48.5x
- Price / book: 6.62x
The 15 boxes
- ✓ 1. Long-form business notes
Veeva sells industry-specific cloud software, data, and consulting to life sciences; the latest 10-K reports revenue in Commercial Solutions (Commercial Cloud + Data Cloud) and R&D and Quality Solutions (Development Cloud + Quality Cloud). The FY2021 10-K described two key product areas (Commercial Cloud and Vault), while the latest 10-K describes four product categories and adds Veeva AI, Vault CRM, and explicit Salesforce support through Dec. 31, 2029. FY2021-FY2026 XBRL shows revenue rising from $1.47B to $3.20B, operating income from $377.8M to $916.4M, and operating cash flow from $551.2M to $1.42B.
- ✓ 2. Competitive advantage
Sources do not establish a durable competitive advantage for Veeva. The 10-K claims Veeva generally competes favorably on domain expertise, regulatory compliance, and other factors, and S29 shows high gross profit ($2.41B on $3.20B revenue in FY2026), operating income ($916.4M), and operating cash flow ($1.42B), consistent with scale economics. But the same 10-K and risk factors describe intense competition—Salesforce in CRM, IQVIA and others in data and development/quality—and disclose that certain large CRM customers have committed to Salesforce and others intend to move, while competitors have greater resources and brand. The CRM competition risk factor is flagged by the computed diff (S28) as new or rewritten, and customer concentration (top 10 = 28% of revenue in FY2024-FY2026) adds risk.
- ✓ 3. 10-Q takeaways
The Q2 FY2027 10-Q (quarter ended 2026-07-31, filed 2026-08-27) shows revenue of $928.0M, up 18% year over year, with subscription up 16% and professional services up 24%; gross margin held at 75% and GAAP operating income rose 40% to $275.0M. The G&A drop is mostly the absence of a $31M litigation settlement charge booked in the prior-year quarter, not a new cost cut. Cash generation is heavy ($1,366M operating cash flow for the six months to July 31, 2026) and the company bought back $467M of stock; guidance from the same-quarter release is numeric for both Q3 and FY2027.
- ✓ 4. Corporate governance
Filled; members read this box.
- ✓ 5. Overview of the prior 3 years of 8-K filings
Filled; members read this box.
- ✓ 6. Other significant filings
Filled; members read this box.
- ✓ 7. Chronology of significant news and events
Filled; members read this box.
- ✓ 8. Comparables valuation interpretation
Filled; members read this box.
- ✓ 9. Insider trading interpretation
Filled; members read this box.
- ○ 10. Earnings-call notes
- ○ 11. Impression of the shareholder letter
- ○ 12. Scuttlebutt overview
- ✓ 13. Valuation and risk/reward summary
Filled; members read this box.
- ✓ 14. Current price suppression and potential catalysts
Filled; members read this box.
- ✓ 15. Conclusions
The call above.
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