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 8.56 is considered Undervalued compared with the five-year average of 9.09. The fair price of Verizon Communications Inc (VZ) is between 43.97 to 52.28 according to relative valuation methord. Compared to the current price of 40.67 USD , Verizon Communications Inc is Undervalued By 7.5%.
Relative Value
Fair Zone
43.97-52.28
Current Price：40.67
7.5%
Undervalued
8.68
PE
1Y
3Y
5Y
Trailing
Forward
6.67
EV/EBITDA
Verizon Communications Inc. (VZ) has a current EV/EBITDA of 6.67. The 5-year average EV/EBITDA is 7.35. The thresholds are as follows: Strongly Undervalued below 6.26, Undervalued between 6.26 and 6.80, Fairly Valued between 7.89 and 6.80, Overvalued between 7.89 and 8.43, and Strongly Overvalued above 8.43. The current Forward EV/EBITDA of 6.67 falls within the Undervalued range.
10.48
EV/EBIT
Verizon Communications Inc. (VZ) has a current EV/EBIT of 10.48. The 5-year average EV/EBIT is 11.39. The thresholds are as follows: Strongly Undervalued below 9.98, Undervalued between 9.98 and 10.69, Fairly Valued between 12.10 and 10.69, Overvalued between 12.10 and 12.80, and Strongly Overvalued above 12.80. The current Forward EV/EBIT of 10.48 falls within the Undervalued range.
1.23
PS
Verizon Communications Inc. (VZ) has a current PS of 1.23. The 5-year average PS is 1.38. The thresholds are as follows: Strongly Undervalued below 0.91, Undervalued between 0.91 and 1.14, Fairly Valued between 1.61 and 1.14, Overvalued between 1.61 and 1.84, and Strongly Overvalued above 1.84. The current Forward PS of 1.23 falls within the Historic Trend Line -Fairly Valued range.
4.39
P/OCF
Verizon Communications Inc. (VZ) has a current P/OCF of 4.39. The 5-year average P/OCF is 4.94. The thresholds are as follows: Strongly Undervalued below 3.45, Undervalued between 3.45 and 4.19, Fairly Valued between 5.69 and 4.19, Overvalued between 5.69 and 6.44, and Strongly Overvalued above 6.44. The current Forward P/OCF of 4.39 falls within the Historic Trend Line -Fairly Valued range.
8.38
P/FCF
Verizon Communications Inc. (VZ) has a current P/FCF of 8.38. The 5-year average P/FCF is 10.28. The thresholds are as follows: Strongly Undervalued below 6.15, Undervalued between 6.15 and 8.21, Fairly Valued between 12.34 and 8.21, Overvalued between 12.34 and 14.41, and Strongly Overvalued above 14.41. The current Forward P/FCF of 8.38 falls within the Historic Trend Line -Fairly Valued range.
Verizon Communications Inc (VZ) has a current Price-to-Book (P/B) ratio of 1.63. Compared to its 3-year average P/B ratio of 1.74 , the current P/B ratio is approximately -5.91% higher. Relative to its 5-year average P/B ratio of 2.17, the current P/B ratio is about -24.74% higher. Verizon Communications Inc (VZ) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 10.70%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 10.07% , the current FCF yield is about -100.00% lower.
1.66
P/B
Median3y
1.74
Median5y
2.17
12.32
FCF Yield
Median3y
10.70
Median5y
10.07
Competitors Valuation Multiple
The average P/S ratio for VZ's competitors is 0.76, providing a benchmark for relative valuation. Verizon Communications Inc Corp (VZ) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 1.47%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of VZ increased by 6.69% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 10.23 to 14.95.
The secondary factor is the Revenue Growth, contributed 1.47%to the performance.
Overall, the performance of VZ in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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