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Verizon Communications Inc.
VZ
40.99 (0.00%) 0.00
172.55(B)
Communication Services
Diversified Telecommunication Services
Verizon Communications Inc. through its subsidiaries engages in the provision of communications technology information and entertainment products and services to consumers businesses and governmental entities worldwide. It operates in two segments Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements; and fixed wireless access (FWA) broadband through its wireless networks as well as related equipment and devices such as smartphones tablets smart watches and other wireless-enabled connected devices. The segment also offers wireline services in the Mid-Atlantic and Northeastern United States as well as Washington D.C. through its fiber-optic network Verizon Fios product portfolio and a copper-based network. The Business segment provides wireless and wireline communications services and products including FWA broadband data video and conferencing corporate networking security and managed network local and long-distance voice and network access services to deliver various IoT services and products to businesses government customers and wireless and wireline carriers in the United States and internationally. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York New York.
Holdings:
Shares:
Cost basis:

Verizon Communications Inc. (VZ) price target and intrinsic value estimate

VZ's fair price estimate is $41.7

This valuation is based on a fair P/E of 9.4 and EPS estimates of $4.45

The median analyst price target for VZ is $47.0.

Analyst price targets range from $40.8 to $55.0

Is VZ overvalued or undervalued?

VZ is currently trading at $40.99

VZ is undervalued by 2% using the pevaluation method.

VZ is undervalued by 13% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Current price
$40.99
Fairly valued
Low
$31.3
Median
$41.7
High
$52.1
Fair P/E
Margin of safety

Analyst valuation

Current price
$40.99
Fairly valued
Low
$40.8
Median
$47.0
High
$55.0
Strong Buy6
Buy6
Hold13
Sell0
Strong Sell0

Discounted cash-flow

N/A
Negative FCF or FCF estimates
TTM FCFFCF est.Growth FCFTerminal FCF
Discount
rate
10%
Terminal
rate
5%
Growth p.
length
5y
Growth p.
rate
10%
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: Medium
None/narrowMediumWideVery wide

Overview

Market data

Market cap:$172.55(B)
Enterprise value:$338.05(B)
Total Equity:$100.58(B)
Shares outstanding:4.21(B)
Div. yield:6.56%
P/S:1.28
P/E:9.88
P/FCF:8.70
P/B:1.74
EPS:$4.2
FCF per share:$4.7
Dividend per share:$2.7

Income (TTM)

RevenueGrossNet
Revenue$134.79(B)
Gross profit$80.69(B)
EBITDA$46.58(B)
Net income$17.51(B)
Gross margin59.9%
Net margin13.0%

Balance sheet

Cash & ST inv.Other ST assetsLong term assetsCurrent liabilitiesLong term debtOther LT liabilitiesEquity
Total assets$384.71(B)
Total liabilities$284.14(B)
Cash & Short-term inv.$4.19(B)
Long-term debt$121.38(B)
Debt issued$15.57(B)
Debt repaid$-20.34(B)

Cash flow (TTM)

CFOCFICFF
FCF$19.82(B)
CapEx$-17.09(B)
Dividends paid$-11.25(B)
Stock issued$0
Stock repurchased$0
Stock-based comp.$0

Future Growth

Revenue

CAGR: 1.6%
FY+1FY+2FY+3FY+4FY+5
FY+1$136.96(B)
FY+2$139.56(B)
FY+3$142.32(B)
FY+4$144.49(B)
FY+5$145.77(B)

Net Income

CAGR: 4.4%
FY+1FY+2FY+3FY+4FY+5
FY+1$19.71(B)
FY+2$20.52(B)
FY+3$21.51(B)
FY+4$22.20(B)
FY+5$23.44(B)

EPS

CAGR: 4.2%
FY+1FY+2FY+3FY+4FY+5
FY+1$4.68
FY+2$4.88
FY+3$5.12
FY+4$5.24
FY+5$5.52

FCF per share

CAGR: 2.0%
FY+1FY+2FY+3
FY+1$8.38
FY+2$8.65
FY+3$8.72

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Historical Financials

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Income
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