VZ Valuation

Verizon Communications Inc

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39.470

-0.27(-0.679%)1D

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 8.36 is considered Undervalued compared with the five-year average of 9.15. The fair price of Verizon Communications Inc (VZ) is between 43.57 to 52.36 according to relative valuation methord. Compared to the current price of 39.47 USD , Verizon Communications Inc is Undervalued By 9.42%.

Relative Value

Fair Zone

43.57-52.36

Current Price：39.47

9.42%

Undervalued

8.36

Trailing

Forward

6.60

EV/EBITDA

Verizon Communications Inc. (VZ) has a current EV/EBITDA of 6.60. The 5-year average EV/EBITDA is 7.38. The thresholds are as follows: Strongly Undervalued below 6.30, Undervalued between 6.30 and 6.84, Fairly Valued between 7.91 and 6.84, Overvalued between 7.91 and 8.45, and Strongly Overvalued above 8.45. The current Forward EV/EBITDA of 6.60 falls within the Undervalued range.

10.41

EV/EBIT

Verizon Communications Inc. (VZ) has a current EV/EBIT of 10.41. The 5-year average EV/EBIT is 11.43. The thresholds are as follows: Strongly Undervalued below 10.04, Undervalued between 10.04 and 10.74, Fairly Valued between 12.13 and 10.74, Overvalued between 12.13 and 12.82, and Strongly Overvalued above 12.82. The current Forward EV/EBIT of 10.41 falls within the Undervalued range.

39.74

Verizon Communications Inc. (VZ) has a current PS of 39.74. The 5-year average PS is 1.48. The thresholds are as follows: Strongly Undervalued below -2.29, Undervalued between -2.29 and -0.40, Fairly Valued between 3.37 and -0.40, Overvalued between 3.37 and 5.25, and Strongly Overvalued above 5.25. The current Forward PS of 39.74 falls within the Strongly Overvalued range.

4.28

P/OCF

Verizon Communications Inc. (VZ) has a current P/OCF of 4.28. The 5-year average P/OCF is 5.00. The thresholds are as follows: Strongly Undervalued below 3.41, Undervalued between 3.41 and 4.21, Fairly Valued between 5.79 and 4.21, Overvalued between 5.79 and 6.58, and Strongly Overvalued above 6.58. The current Forward P/OCF of 4.28 falls within the Historic Trend Line -Fairly Valued range.

8.18

P/FCF

Verizon Communications Inc. (VZ) has a current P/FCF of 8.18. The 5-year average P/FCF is 10.39. The thresholds are as follows: Strongly Undervalued below 6.22, Undervalued between 6.22 and 8.30, Fairly Valued between 12.47 and 8.30, Overvalued between 12.47 and 14.56, and Strongly Overvalued above 14.56. The current Forward P/FCF of 8.18 falls within the Undervalued range.

Verizon Communications Inc (VZ) has a current Price-to-Book (P/B) ratio of 1.60. Compared to its 3-year average P/B ratio of 1.74 , the current P/B ratio is approximately -8.39% higher. Relative to its 5-year average P/B ratio of 2.21, the current P/B ratio is about -27.76% higher. Verizon Communications Inc (VZ) has a Forward Free Cash Flow (FCF) yield of approximately 12.60%. Compared to its 3-year average FCF yield of 10.60%, the current FCF yield is approximately 18.91% lower. Relative to its 5-year average FCF yield of 10.01% , the current FCF yield is about 25.95% lower.

1.60

P/B

Median3y

1.74

Median5y

2.21

12.60

FCF Yield

Median3y

10.60

Median5y

10.01

Competitors Valuation Multiple

The average P/S ratio for VZ's competitors is 118.69, providing a benchmark for relative valuation. Verizon Communications Inc Corp (VZ) exhibits a P/S ratio of 39.74, which is -66.52% 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

VZ.N

Verizon Communications Inc

Turkcell Iletisim Hizmetleri AS

Performance Decomposition

Market capitalization of VZ decreased by 10.98% 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.

1.47%

33.33B → 33.82B

Revenue Growth

46.14%

10.23 → 14.95

Margin Expansion

-58.59%

20.46 → 8.47

P/E Change

-10.98%