VZ Valuation

Verizon Communications Inc

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43.080

0(0.000%)1D

Overview
Forecast
Valuation
Earnings

VZ Relative Valuation

VZ's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, VZ is overvalued; if below, it's undervalued.

Historical Valuation

Verizon Communications Inc (VZ) is now in the Undervalued zone, suggesting that its current forward PE ratio of 9.04 is considered Undervalued compared with the five-year average of 9.32. The fair price of Verizon Communications Inc (VZ) is between 44.22 to 54.40 according to relative valuation methord. Compared to the current price of 43.08 USD , Verizon Communications Inc is Undervalued By 2.58%.

Relative Value

Fair Zone

44.22-54.40

Current Price：43.08

2.58%

Undervalued

9.04

Trailing

Forward

6.93

EV/EBITDA

Verizon Communications Inc. (VZ) has a current EV/EBITDA of 6.93. The 5-year average EV/EBITDA is 7.42. The thresholds are as follows: Strongly Undervalued below 6.35, Undervalued between 6.35 and 6.88, Fairly Valued between 7.95 and 6.88, Overvalued between 7.95 and 8.48, and Strongly Overvalued above 8.48. The current Forward EV/EBITDA of 6.93 falls within the Historic Trend Line -Fairly Valued range.

10.81

EV/EBIT

Verizon Communications Inc. (VZ) has a current EV/EBIT of 10.81. The 5-year average EV/EBIT is 11.49. The thresholds are as follows: Strongly Undervalued below 10.10, Undervalued between 10.10 and 10.79, Fairly Valued between 12.18 and 10.79, Overvalued between 12.18 and 12.87, and Strongly Overvalued above 12.87. The current Forward EV/EBIT of 10.81 falls within the Historic Trend Line -Fairly Valued range.

1.30

Verizon Communications Inc. (VZ) has a current PS of 1.30. The 5-year average PS is 1.42. The thresholds are as follows: Strongly Undervalued below 0.90, Undervalued between 0.90 and 1.16, Fairly Valued between 1.68 and 1.16, Overvalued between 1.68 and 1.94, and Strongly Overvalued above 1.94. The current Forward PS of 1.30 falls within the Historic Trend Line -Fairly Valued range.

4.60

P/OCF

Verizon Communications Inc. (VZ) has a current P/OCF of 4.60. The 5-year average P/OCF is 5.13. The thresholds are as follows: Strongly Undervalued below 3.29, Undervalued between 3.29 and 4.21, Fairly Valued between 6.05 and 4.21, Overvalued between 6.05 and 6.98, and Strongly Overvalued above 6.98. The current Forward P/OCF of 4.60 falls within the Historic Trend Line -Fairly Valued range.

8.81

P/FCF

Verizon Communications Inc. (VZ) has a current P/FCF of 8.81. The 5-year average P/FCF is 10.66. The thresholds are as follows: Strongly Undervalued below 6.22, Undervalued between 6.22 and 8.44, Fairly Valued between 12.88 and 8.44, Overvalued between 12.88 and 15.10, and Strongly Overvalued above 15.10. The current Forward P/FCF of 8.81 falls within the Historic Trend Line -Fairly Valued range.

Verizon Communications Inc (VZ) has a current Price-to-Book (P/B) ratio of 1.76. Compared to its 3-year average P/B ratio of 1.77 , the current P/B ratio is approximately -0.21% higher. Relative to its 5-year average P/B ratio of 2.33, the current P/B ratio is about -24.22% higher. Verizon Communications Inc (VZ) has a Forward Free Cash Flow (FCF) yield of approximately 11.08%. Compared to its 3-year average FCF yield of 10.35%, the current FCF yield is approximately 7.02% lower. Relative to its 5-year average FCF yield of 9.91% , the current FCF yield is about 11.83% lower.

1.76

P/B

Median3y

1.77

Median5y

2.33

11.08

FCF Yield

Median3y

10.35

Median5y

9.91

Competitors Valuation Multiple

The average P/S ratio for VZ's competitors is 1.70, providing a benchmark for relative valuation. Verizon Communications Inc Corp (VZ) exhibits a P/S ratio of 1.30, which is -23.48% above the industry average. Given its robust revenue growth of 5.21%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

VZ.N

Verizon Communications Inc

Turkcell Iletisim Hizmetleri AS

Performance Decomposition

Market capitalization of VZ increased by 6.32% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 32.80B to 34.50B.

The secondary factor is the Margin Expansion, contributed 3.49%to the performance.

Overall, the performance of VZ in the past 1 year is driven by Revenue Growth. Which is more sustainable.

5.21%

32.80B → 34.50B

Revenue Growth

3.49%

14.34 → 14.84

Margin Expansion

-2.38%

10.26 → 10.02

P/E Change

6.32%