← All companies ← VCTR Manual VECO → ← ULS Life Sciences Tools & Services WAT →

VCYT, Veracyte Inc.

Life Sciences Tools & Services asset-light

We serve global markets with two complementary models.

Insights from these tests help patients avoid unnecessary procedures and interventions and accelerate time to appropriate treatment, thereby improving outcomes for patients across our global markets.

Our Novel Approach — the Veracyte Diagnostics Platform We have established a novel approach to drive the successful launch and adoption of our high-performing tests, which we refer to as the Veracyte Diagnostics Platform.

Latest annual: FY2025 10-K

VCYT · Veracyte Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$517M

+16.0% YoY · 35% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $542M 5-yr avg $368M

Gross margin 93%

Operating margin 14.3% 5-yr avg −12.0%

ROIC 7% 5-yr avg −2%

Owner-earnings margin 29% 5-yr avg 6%

Free cash flow margin 29% 5-yr avg 6%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Operating margin has reached 11% at its best but run negative through the cycle (median −24%) on a 61% gross margin — so the question is which reading is truer: whether the median was pulled below zero by one-off charges, by the cycle, or by spending it is still growing into, and whether it settles back at a profit. Stock-based pay runs about 9.0% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on volume, payer mix and reimbursement. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −11%, above 15% in 0 of 10 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$65M	$72M	$92M	$120M	$117M	$220M	$297M	$361M	$446M	$517M	$542M	RevenueRevenue
61%	61%	64%	70%	—	—	—	—	—	—	93%	Gross marginGross mgn
37%	32%	26%	24%	31%	46%	25%	24%	25%	21%	19%	SG&A / revenueSG&A/rev
24%	19%	16%	12%	15%	14%	14%	16%	16%	14%	15%	R&D / revenueR&D/rev
($29M)	($27M)	($22M)	($15M)	($35M)	($82M)	($41M)	($86M)	$16M	$58M	$78M	Operating incomeOp. inc.
−44.3%	−36.9%	−24.2%	−12.6%	−30.1%	−37.3%	−13.9%	−23.8%	3.6%	11.2%	14.3%	Operating marginOp. mgn
($31M)	($31M)	($23M)	($13M)	($35M)	($76M)	($37M)	($74M)	$24M	$66M	$88M	Net incomeNet inc.
—	—	—	—	—	—	—	—	6%	3%	3%	Effective tax rateTax rate
											Cash flow & returns
($28M)	($24M)	($14M)	($3M)	($10M)	($32M)	$8M	$44M	$75M	$136M	$166M	Operating cash flowOp. cash
$4M	$4M	$4M	$4M	$8M	$20M	$26M	$27M	$23M	$21M	$21M	DepreciationDeprec.
($7M)	($3M)	($400K)	($5M)	$4M	$2M	($9M)	$58M	($9M)	$5M	$11M	Working capital & otherWC & other
$4M	$2M	$2M	$3M	$3M	$5M	$9M	$10M	$11M	$10M	$11M	CapexCapex
6.5%	2.4%	2.0%	2.3%	2.4%	2.4%	2.9%	2.8%	2.5%	1.9%	2.0%	Capex / revenueCapex/rev
($32M)	($26M)	($15M)	($6M)	($13M)	($37M)	($1M)	$34M	$64M	$127M	$155M	Owner earningsOwner earn.
−49.5%	−35.7%	−16.7%	−5.0%	−10.7%	−16.9%	−0.3%	9.5%	14.3%	24.5%	28.7%	Owner earnings marginOE mgn
($32M)	($26M)	($15M)	($6M)	($13M)	($37M)	($1M)	$34M	$64M	$127M	$155M	Free cash flowFCF
−49.5%	−35.7%	−16.7%	−5.0%	−10.7%	−16.9%	−0.3%	9.5%	14.3%	24.5%	28.7%	Free cash flow marginFCF mgn
$0	$0	$0	$0	$0	$574M	$0	$0	$0	$0	$0	AcquisitionsAcquis.
-90%	-74%	-65%	-15%	-38%	-7%	-4%	-8%	2%	6%	7%	ROICROIC
-53%	-83%	-29%	-5%	-8%	-7%	-3%	-7%	2%	5%	7%	Return on equityROE
−53%	−83%	−29%	−5%	−8%	−7%	−3%	−7%	2%	5%	7%	Retained to equityRetained/eq
											Balance sheet
$59M	$34M	$78M	$159M	$349M	$173M	$154M	$216M	$239M	$363M	$313M	Cash & investmentsCash+inv
$9M	$13M	$13M	$19M	$18M	$41M	$44M	$40M	$47M	$45M	$50M	ReceivablesReceiv.
$3M	$5M	$3M	$7M	$5M	$11M	$14M	$16M	$22M	$21M	$21M	InventoryInvent.
$2M	$4M	$3M	$2M	$3M	$12M	$12M	$13M	$9M	$5M	$7M	Accounts payablePayables
$10M	$14M	$14M	$24M	$20M	$40M	$46M	$44M	$60M	$61M	$64M	Operating working capitalOper. WC
$74M	$54M	$97M	$188M	$376M	$243M	$249M	$286M	$372M	$488M	$522M	Current assetsCur. assets
$12M	$12M	$13M	$17M	$17M	$64M	$63M	$61M	$79M	$60M	$56M	Current liabilitiesCur. liab.
6.4×	4.5×	7.4×	10.7×	22.4×	3.8×	4.0×	4.7×	4.7×	8.1×	9.3×	Current ratioCurr. ratio
$1M	$1M	$1M	$3M	$3M	$708M	$696M	$703M	$746M	$767M	$767M	GoodwillGoodwill
$101M	$79M	$121M	$275M	$457M	$1.2B	$1.2B	$1.1B	$1.3B	$1.4B	$1.4B	Total assetsAssets
$25M	$25M	$25M	$694K	$810K	$1M	$0	—	—	—	$0	Total debtDebt
($34M)	($9M)	($53M)	($159M)	($349M)	($172M)	($154M)	—	—	—	($313M)	Net debt / (cash)Net debt
-10.4×	-5.4×	-11.3×	-22.3×	-154.5×	—	—	—	—	—	344.5×	Interest coverageInt. cov.
$60M	$37M	$80M	$239M	$421M	$1.1B	$1.1B	$1.0B	$1.2B	$1.3B	$1.3B	Shareholders’ equityEquity
9.8%	9.2%	6.5%	8.1%	11.1%	10.3%	9.0%	9.2%	8.1%	8.4%	8.4%	Stock comp / revenueSBC/rev
											Per share
28.8M	33.9M	37.0M	46.1M	53.2M	67.9M	71.5M	72.6M	78.2M	80.6M	81.3M	Shares out (diluted)Shares
$2.26	$2.12	$2.49	$2.61	$2.21	$3.23	$4.14	$4.97	$5.70	$6.42	$6.66	Revenue / shareRev/sh
$-1.09	$-0.91	$-0.62	$-0.27	$-0.66	$-1.11	$-0.51	$-1.02	$0.31	$0.82	$1.08	EPS (diluted)EPS
$-1.12	$-0.76	$-0.42	$-0.13	$-0.24	$-0.54	$-0.01	$0.47	$0.82	$1.57	$1.91	Owner earnings / shareOE/sh
$-1.12	$-0.76	$-0.42	$-0.13	$-0.24	$-0.54	$-0.01	$0.47	$0.82	$1.57	$1.91	Free cash flow / shareFCF/sh
$0.15	$0.05	$0.05	$0.06	$0.05	$0.08	$0.12	$0.14	$0.14	$0.12	$0.13	Cap. spending / shareCapex/sh
$2.07	$1.10	$2.15	$5.19	$7.91	$16.15	$15.03	$14.37	$15.05	$16.25	$16.53	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+12.3%/yr	+23.8%/yr
Capital spending / share	−2.1%/yr	+17.6%/yr
Book value / share	+25.8%/yr	+15.5%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Testing+17.7%
“Testing revenue increased by $74.2 million, or 18%, driven by a $66.7 million increase in Decipher revenue and a $13.7 million increase in Afirma revenue.”
✓ figure matches the filed record
Biopharmaceutical And Other-26.5%
“Biopharmaceutical and other revenue decreased by $3.5 million for the year ended December 31, 2025 compared to 2024, due to the decrease in the business conducted in France given the restructuring proceedings affecting Veracyte SAS in August 2025.”
✓ figure matches the filed record

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

81Mpeak FY2025

ROIC

6%low FY2016

Gross margin

70%low FY2017

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$127Mowner earningsvs.$66Mnet incomelow FY2021

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2022FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $66M of profit into $127M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$66M

Owner earnings$127M · 24% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$66M	$24M	($74M)	($37M)	($76M)
Depreciation & amortizationnon-cash charge added back	+$21M	+$23M	+$27M	+$26M	+$20M
Stock-based compensationreal costnon-cash, but a real cost	+$44M	+$36M	+$33M	+$27M	+$23M
Working capital & othertiming of cash in and out, other non-cash items	+$5M	−$9M	+$58M	−$9M	+$2M
Cash from operations	$136M	$75M	$44M	$8M	($32M)
Capital expenditurecash put back in to keep running and to grow	−$10M	−$11M	−$10M	−$9M	−$5M
Owner earnings	$127M	$64M	$34M	($1M)	($37M)
Owner-earnings marginowner earnings ÷ revenue	24%	14%	9%	0%	-17%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $44M), owner earnings is nearer $83M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 252.3×

Comfortable

Operating income $58M ÷ interest expense $229K

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$363M

Net cash, debt-free

Cash $363M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $363M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 193d

Long (60+ days)

DSO 32 + DIO 208 − DPO 46 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital -15%

Below average through the cycle

10-yr median, range -90%–6%; 6% latest = NOPAT $56M ÷ invested capital $947M

Industry peers: median -26%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 6% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 24%

High, recently turned positive

latest $127M = operating cash $136M − maintenance capex $10M; positive each of the last 3 years, after an earlier loss stretch (10-yr median -11%)

Industry peers: median -20%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 24% of revenue this year, a -11% median across 10 years. Treating stock comp as the real expense it is (less $44M of SBC) leaves $83M.
Are earnings backed by cash? 2.05×

Cash-backed

Cash from ops $136M ÷ net income $66M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 0.45×

Harvesting

Capex $10M ÷ depreciation $21M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $517M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 8.15×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $0 vs $428M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 8 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.07/share (latest year $0.83), the averaged base the calculator's gate runs on, and book value is $16.41/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 2 of 10

What this means
Lost money in 8 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 7 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −35% → −3% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −35% early to −3% lately, median −24% — pricing power intact or improving.
Reinvestment, incremental ROIC 4%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Worst year 2016 · −44.3% op. margin

What this means
Operations went underwater in 2016, understand why before trusting the good years.

Does AI threaten the moat?

Moderate contestability

AI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“In addition, we may face increased competition from companies that combine traditional pathology methods and new technologies such as AI and digital pathology, such as the ArteraAI Prostate Test.”

The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$522M

Cash & short-term investments$313M
Receivables$50M
Inventory$21M
Other current assets$138M

Current liabilities$56M

Accounts payable$7M
Other current liabilities$49M

Current ratio9.31×all current assets ÷ what's due · Graham looked for 2×

Quick ratio8.94×stricter: inventory excluded

Cash ratio5.59×strictest: cash alone against what's due

Working capital$466Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+21.5%the freshest read on whether the business is still growing

Current ratio, recent quarters4.4× → 9.3×

Deeper floors

Tangible book value$491Mequity stripped of goodwill & intangibles

Net current asset value$430MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$39M$39M of it operating leases

Deferred revenue$749Kcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $153M of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

Reinvested$58M · 38%
Retained (debt / cash)$95M · 62%

Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt fell $25M and cash and short-term investments rose $254M.
Net change in share count182.0%
The diluted count rose from 29M to 81M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$856M61% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity59%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$580Mover 10 years buying other businesses, against $58M of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Bonnie Anderson	$4.5M	$2.9M	($37M)
2021	Marc Stapley	$5.7M	$5.7M	($37M)
2022	Marc Stapley	$4.9M	$1.6M	($1M)
2023	Marc Stapley	$7.2M	$9.6M	$34M
2024	Marc Stapley	$6.8M	$14.9M	$64M
2025	Marc Stapley	$7.4M	$9.6M	$127M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$44M
The slice of the business handed to employees in shares this year, 8% of revenue, equal to 75% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Veracyte Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 5 tests turned up something to look into; the other 4 came back clean.

Look hereDid the share count rise anyway?182.0%
Diluted shares grew 182.0% over 2016–2025. Owners were diluted on net; each share owns less of the business than it did. Read the buyback line beside this one, not on its own.

And these came back clean

Is it less profitable than it was?
Did debt outgrow the business?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Inventory, Acquisitions, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Life Sciences Tools & Services

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
SGRYSurgery Partners Inc.	$3.3B	26%	12.4%	6%	6%
TDOCTeladoc Health Inc.	$2.5B	69%	-24.6%	-8%	6%
NTRANatera Inc.	$2.3B	37%	-46.0%	-62%	-33%
VCYTVeracyte Inc.	$517M	62%	-24.0%	-11%	-8%
WGSGeneDx Holdings Corp.	$428M	42%	-89.2%	-44%	-58%
OMDAOmada Health Inc.	$260M	61%	-25.7%	-124%	-20%
TALKTalkspace Inc.	$229M	52%	-28.9%	4%	-51%
LFMDPLifemd, Inc.	$194M	80%	-23.9%	—	4%
Group median	—	56%	-25.2%	-11%	-14%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Veracyte Inc. has delivered.

Today’s price $

Base Normalize · through-cycle ($75M) Net of stock comp (−$45M) Steady-state · maintenance capex ($156M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · since FY2023+92%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $155M on 80M shares outstanding, per the 10-Q cover, as of 2026-05-01; net cash $313M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($11M) runs well above depreciation ($21M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $156M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh VCYT against another business →

The owners of VCYT: the meeting and the votes →

Cite: Owner Scorecard, "Veracyte Inc. (VCYT), the owner's record," https://ownerscorecard.com/c/VCYT, data as of 2026-07-09.

Manual order: ← VCTR its page in the Manual VECO →

Industry order: ← ULS the Life Sciences Tools & Services chapter WAT →