Verizon Communications Valuation

VZ Stock  USD 47.95  0.98  2.00%   
At this time, the company appears to be fairly valued. Verizon Communications has a current Real Value of $47.79 per share. The regular price of the company is $47.95. Our model measures the value of Verizon Communications from inspecting the company fundamentals such as Return On Equity of 0.17, operating margin of 0.14 %, and Shares Outstanding of 4.22 B as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Verizon Communications' valuation include:
Price Book
1.9785
Enterprise Value
369.3 B
Enterprise Value Ebitda
7.7391
Price Sales
1.4956
Forward PE
9.9602
Fairly Valued
Today
47.95
Please note that Verizon Communications' price fluctuation is very steady at this time. Calculation of the real value of Verizon Communications is based on 3 months time horizon. Increasing Verizon Communications' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Verizon Communications is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Verizon Stock. However, Verizon Communications' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  47.95 Real  47.79 Target  49.34 Hype  48.59
The intrinsic value of Verizon Communications' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Verizon Communications' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
47.79
Real Value
49.71
Upside
Estimating the potential upside or downside of Verizon Communications helps investors to forecast how Verizon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Verizon Communications more accurately as focusing exclusively on Verizon Communications' fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
1.121.211.33
Details
Hype
Prediction
LowEstimatedHigh
46.6748.5950.51
Details
26 Analysts
Consensus
LowTarget PriceHigh
44.9049.3454.77
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Verizon Communications' intrinsic value based on its ongoing forecasts of Verizon Communications' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Verizon Communications' closest peers.

Verizon Communications Cash

20 Billion

Verizon Revenue by Product

Verizon Communications Total Value Analysis

Verizon Communications is at this time forecasted to have takeover value of 369.27 B with market capitalization of 206.68 B, debt of 200.59 B, and cash on hands of 19.05 B. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Verizon Communications fundamentals before making investment evaluation based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
369.27 B
206.68 B
200.59 B
19.05 B

Verizon Communications Investor Information

About 69.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.98. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Verizon Communications has Price/Earnings To Growth (PEG) ratio of 1.21. The entity last dividend was issued on the 10th of April 2026. The firm had 1000000:937889 split on the 2nd of July 2010. Based on the key indicators related to Verizon Communications' liquidity, profitability, solvency, and operating efficiency, Verizon Communications may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.160.2117
Way Down
Very volatile
Total Cash From Operating Activities25.7 B37.1 B
Way Down
Slightly volatile
Operating Income17.2 B29.3 B
Way Down
Slightly volatile

Verizon Communications Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Verizon Communications has an asset utilization ratio of 34.18 percent. This suggests that the Company is making $0.34 for each dollar of assets. An increasing asset utilization means that Verizon Communications is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Verizon Communications Profitability Analysis

Based on Verizon Communications' profitability indicators, Verizon Communications' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Verizon Communications' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1985-09-30
Previous Quarter
B
Current Value
2.3 B
Quarterly Volatility
2.4 B
 
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Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
At this time, Verizon Communications' Pretax Profit Margin is fairly stable compared to the past year. Gross Profit Margin is likely to rise to 0.58 in 2026, whereas Gross Profit is likely to drop slightly above 40.8 B in 2026.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.580.4564
Significantly Up
Slightly volatile
Net Profit Margin0.07490.1243
Way Down
Slightly volatile
Operating Profit Margin0.160.2117
Way Down
Very volatile
Pretax Profit Margin0.180.1641
Significantly Up
Pretty Stable
Return On Assets0.03420.0425
Significantly Down
Pretty Stable
Return On Equity0.180.1644
Significantly Up
Pretty Stable
For Verizon Communications profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Verizon Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Verizon Communications utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Verizon Communications's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Verizon Communications over time as well as its relative position and ranking within its peers.

Verizon Communications Earnings per Share Projection vs Actual

The next projected EPS of Verizon Communications is estimated to be 1.21 with future projections ranging from a low of 1.12 to a high of 1.33. Verizon Communications' most recent 12-month trailing earnings per share (EPS TTM) is at 4.06. Please be aware that the consensus of earnings estimates for Verizon Communications is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Verizon Communications is projected to generate 1.21 in earnings per share on the 31st of March 2026. Verizon Communications earnings estimates show analyst consensus about projected Verizon Communications EPS (Earning Per Share). It derives the highest and the lowest estimates based on Verizon Communications' historical volatility. Many public companies, such as Verizon Communications, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Verizon Communications Earnings Estimation Breakdown

The calculation of Verizon Communications' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Verizon Communications is estimated to be 1.21 with the future projection ranging from a low of 1.12 to a high of 1.33. Please be aware that this consensus of annual earnings estimates for Verizon Communications is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
1.09
1.12
Lowest
Expected EPS
1.21
1.33
Highest

Verizon Communications Earnings Projection Consensus

Suppose the current estimates of Verizon Communications' value are higher than the current market price of the Verizon Communications stock. In this case, investors may conclude that Verizon Communications is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Verizon Communications' stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of March 2026Current EPS (TTM)
2597.82%
1.09
1.21
4.06

Verizon Communications Ownership Allocation

Verizon Communications shows a total of 4.22 Billion outstanding shares. Over half of Verizon Communications' outstanding shares are owned by institutional holders. These institutional holders are typically referred to as corporate investors that take positions in a given instrument to benefit from reduced trade commissions. On January 16, 2026, Representative Julie Johnson of US Congress acquired under $15k worth of Verizon Communications's common stock.

Verizon Communications Profitability Analysis

The company generated the yearly revenue of 138.19 B. Reported Net Income was 17.17 B with gross profit of 81.43 B.

Verizon Communications Past Distributions to stockholders

About Verizon Communications Valuation

Our relative valuation model uses a comparative analysis of Verizon Communications. We calculate exposure to Verizon Communications's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Verizon Communications's related companies.
Last ReportedProjected for Next Year
Gross Profit63.1 B40.8 B
Pretax Profit Margin 0.16  0.18 
Operating Profit Margin 0.21  0.16 
Net Profit Margin 0.12  0.07 
Gross Profit Margin 0.46  0.58 
Verizon Communications' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Verizon Communications' value is low or high relative to the company's performance and growth projections. Determining the market value of Verizon Communications can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Verizon Communications represents a small ownership stake in the entity. As a stockholder of Verizon, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Verizon Communications Dividends Analysis For Valuation

Dividend Payout Ratio is likely to rise to 0.91 in 2026, whereas Dividends Paid is likely to drop slightly above 6.2 B in 2026. . At this time, Verizon Communications' Retained Earnings are fairly stable compared to the past year. Retained Earnings Total Equity is likely to rise to about 99.5 B in 2026, whereas Earnings Yield is likely to drop 0.05 in 2026.
Last ReportedProjected for Next Year
Dividends Paid11.5 B6.2 B
Dividend Yield 0.07  0.04 
Dividend Payout Ratio 0.67  0.91 
Dividend Paid And Capex Coverage Ratio 1.30  0.98 
There are various types of dividends Verizon Communications can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Verizon shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Verizon Communications directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Verizon pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Verizon Communications by the value of the dividends paid out.

Verizon Communications Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding4.2 B
Quarterly Earnings Growth Y O Y-0.534
Forward Price Earnings9.9602

Verizon Communications Current Valuation Indicators

Valuation refers to the process of determining the present value of Verizon Communications and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Verizon we look at many different elements of the entity such as Verizon's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Verizon Communications, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Verizon Communications' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Verizon Communications' worth.

Additional Tools for Verizon Stock Analysis

When running Verizon Communications' price analysis, check to measure Verizon Communications' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Verizon Communications is operating at the current time. Most of Verizon Communications' value examination focuses on studying past and present price action to predict the probability of Verizon Communications' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Verizon Communications' price. Additionally, you may evaluate how the addition of Verizon Communications to your portfolios can decrease your overall portfolio volatility.