Is Verizon Communications Stock a Good Investment?

Verizon Communications Investment Advice

  VZ
To provide specific investment advice or recommendations on Verizon Communications stock, we recommend investors consider the following general factors when evaluating Verizon Communications. This will help you to make an informed decision on whether to include Verizon Communications in one of your diversified portfolios:
  • Examine Verizon Communications' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Verizon Communications' leadership team and their track record. Good management can help Verizon Communications navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Diversified Telecommunication Services space and any emerging trends that could impact Verizon Communications' business and its evolving consumer preferences.
  • Compare Verizon Communications' performance and market position to its competitors. Analyze how Verizon Communications is positioned in terms of product offerings, innovation, and market share.
  • Check if Verizon Communications pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Verizon Communications' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Verizon Communications stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Verizon Communications is a good investment.
 
Sell
 
Buy
Strong Buy
Verizon Communications recommendation module can be used to check and cross-verify current trade recommendation provided by analysts inspecting the firm's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Verizon Communications is not overpriced, please validate all Verizon Communications fundamentals, including its revenue, total debt, earnings per share, as well as the relationship between the net income and book value per share . Given that Verizon Communications has a price to earning of 8.48 X, we advise you to double-check Verizon Communications market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance

InsignificantDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails

Examine Verizon Communications Stock

Researching Verizon Communications' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 64.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.83. 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 1.11. The entity last dividend was issued on the 9th of April 2024. The firm had 1000000:93 split on the 2nd of July 2010.
To determine if Verizon Communications is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Verizon Communications' research are outlined below:
The company reports 174.94 B of total liabilities with total debt to equity ratio (D/E) of 2.01, which may imply that the company relies heavily on debt financing. Verizon Communications has a current ratio of 0.74, implying that it has not enough working capital to pay out debt commitments in time. Debt can assist Verizon Communications until it has trouble settling it off, either with new capital or with free cash flow. So, Verizon Communications' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Verizon Communications sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Verizon to invest in growth at high rates of return. When we think about Verizon Communications' use of debt, we should always consider it together with cash and equity.
Verizon Communications has a strong financial position based on the latest SEC filings
About 64.0% of Verizon Communications outstanding shares are owned by institutional investors
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Verizon Communications Quarterly Liabilities And Stockholders Equity

380.25 Billion

Verizon Communications uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Verizon Communications. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Verizon Communications' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
23rd of April 2024
Upcoming Quarterly Report
View
23rd of July 2024
Next Financial Report
View
31st of March 2024
Next Fiscal Quarter End
View
28th of January 2025
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
View
31st of December 2023
Last Financial Announcement
View
Earnings surprises can significantly impact Verizon Communications' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Verizon Communications' investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2013-01-22
2012-12-310.50.45-0.0510 
2000-10-30
2000-09-300.840.73-0.1113 

Know Verizon Communications' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Verizon Communications is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Verizon Communications backward and forwards among themselves. Verizon Communications' institutional investor refers to the entity that pools money to purchase Verizon Communications' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Dimensional Fund Advisors, Inc.2023-12-31
35.5 M
Jpmorgan Chase & Co2023-12-31
33.3 M
Bank Of New York Mellon Corp2023-12-31
30.8 M
Fmr Inc2023-12-31
28.6 M
T. Rowe Price Associates, Inc.2023-12-31
27.4 M
Ubs Asset Mgmt Americas Inc2023-12-31
27 M
Royal Bank Of Canada2023-12-31
25.6 M
Amvescap Plc.2023-12-31
25.3 M
Arrowstreet Capital Limited Partnership2023-12-31
25.2 M
Vanguard Group Inc2023-12-31
350.1 M
Blackrock Inc2023-12-31
348.1 M
Note, although Verizon Communications' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Verizon Communications' market capitalization trends

The company currently falls under 'Mega-Cap' category with a market capitalization of 169.07 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Verizon Communications's market, we take the total number of its shares issued and multiply it by Verizon Communications's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

116.66 Billion

Verizon Communications' profitablity analysis

Verizon Communications' profitability indicators refer to fundamental financial ratios that showcase Verizon Communications' ability to generate income relative to its revenue or operating costs. If, let's say, Verizon Communications is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Verizon Communications' executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Verizon Communications' profitability requires more research than a typical breakdown of Verizon Communications' financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
Last ReportedProjected for Next Year
Return On Tangible Assets 0.06  0.05 
Return On Capital Employed 0.09  0.12 
Return On Assets 0.03  0.04 
Return On Equity 0.13  0.18 
The company has Net Profit Margin (PM) of 0.09 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.2 %, which signifies that for every $100 of sales, it has a net operating income of $0.2.
Determining Verizon Communications' profitability involves analyzing its financial statements and using various financial metrics to determine if Verizon Communications is a good buy. For example, gross profit margin measures Verizon Communications' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Verizon Communications' profitability and make more informed investment decisions.
The data published in Verizon Communications' official financial statements usually reflect Verizon Communications' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Verizon Communications. For example, before you start analyzing numbers published by Verizon accountants, it's critical to develop an understanding of what Verizon Communications' liquidity, profitability, and earnings quality are in the context of the Diversified Telecommunication Services space in which it operates.
Please note, the presentation of Verizon Communications' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Verizon Communications' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Verizon Communications' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Verizon Communications. Please utilize our Beneish M Score to check the likelihood of Verizon Communications' management manipulating its earnings.

Evaluate Verizon Communications' management efficiency

Verizon Communications has Return on Asset (ROA) of 0.0498 % which means that for every $100 of assets, it generated a profit of $0.0498. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.1299 %, which means that it produced $0.1299 on every 100 dollars invested by current stockholders. Verizon Communications' management efficiency ratios could be used to measure how well Verizon Communications manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Verizon Communications' Return On Capital Employed is fairly stable compared to the past year. Return On Assets is likely to rise to 0.04 in 2024, whereas Return On Tangible Assets are likely to drop 0.05 in 2024. At this time, Verizon Communications' Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to rise to about 360.6 B in 2024, whereas Total Current Assets are likely to drop slightly above 21.8 B in 2024.
Last ReportedProjected for Next Year
Book Value Per Share 21.95  23.05 
Net Current Asset Value 0.00  0.00 
Tangible Asset Value 0.00  0.00 
Tangible Book Value Per Share(22.74)(21.61)
Enterprise Value Over EBITDA 7.14  5.08 
Price Book Value Ratio 1.72  3.04 
Enterprise Value Multiple 7.14  5.08 
Price Fair Value 1.72  3.04 
Enterprise Value120.3 B126.3 B
The analysis of Verizon Communications' management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Verizon Communications' future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Verizon Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0662
Forward Dividend Yield
0.0662
Forward Dividend Rate
2.66
Beta
0.394

Basic technical analysis of Verizon Stock

As of the 13th of April 2024, Verizon Communications has the Coefficient Of Variation of 2274.05, risk adjusted performance of 0.0326, and Semi Deviation of 1.09. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Verizon Communications, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Verizon Communications, which can be compared to its competition. Please validate Verizon Communications value at risk, as well as the relationship between the semi variance and kurtosis to decide if Verizon Communications is priced more or less accurately, providing market reflects its prevalent price of 39.72 per share. Given that Verizon Communications has jensen alpha of 0.021, we advise you to double-check Verizon Communications's current market performance to make sure the company can sustain itself at a future point.

Verizon Communications' Outstanding Corporate Bonds

Verizon Communications issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Verizon Communications uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Verizon bonds can be classified according to their maturity, which is the date when Verizon Communications has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Verizon Communications' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Verizon Communications' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Verizon Communications' intraday indicators

Verizon Communications intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Verizon Communications stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Verizon Communications Corporate Filings

12th of April 2024
Other Reports
ViewVerify
F4
1st of April 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
25th of March 2024
Prospectus used primarily for registering securities for public sale.
ViewVerify
21st of March 2024
Other Reports
ViewVerify
Verizon Communications time-series forecasting models is one of many Verizon Communications' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Verizon Communications' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Verizon Stock media impact

Far too much social signal, news, headlines, and media speculation about Verizon Communications that are available to investors today. That information is available publicly through Verizon media outlets and privately through word of mouth or via Verizon internal channels. However, regardless of the origin, that massive amount of Verizon data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Verizon Communications news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Verizon Communications relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Verizon Communications' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Verizon Communications alpha.

Verizon Communications Historical Investor Sentiment

Investor biases related to Verizon Communications' public news can be used to forecast risks associated with an investment in Verizon. The trend in average sentiment can be used to explain how an investor holding Verizon can time the market purely based on public headlines and social activities around Verizon Communications. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Verizon Communications' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Verizon Communications and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Verizon Communications news discussions. The higher the estimate score, the more favorable the investor's outlook on Verizon Communications.

Verizon Communications Maximum Pain Price across 2024-04-19 Option Contracts

Verizon Communications' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Verizon Communications close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Verizon Communications' options.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Verizon Communications without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Verizon Communications Corporate Directors

Verizon Communications corporate directors refer to members of a Verizon Communications board of directors. The board of directors generally takes responsibility for the Verizon Communications' affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Verizon Communications' board members must vote for the resolution. The Verizon Communications board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
Martha KeethIndependent DirectorProfile
Gregory WeaverIndependent DirectorProfile
Roxanne AustinIndependent DirectorProfile
KarlLudwig KleyDirectorProfile

How to buy Verizon Stock?

To provide specific investment advice or recommendations on Verizon Communications stock, we recommend investors consider the following general factors when evaluating Verizon Communications. This will help you to make an informed decision on whether to include Verizon Communications in one of your diversified portfolios:
  • Examine Verizon Communications' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Verizon Communications' leadership team and their track record. Good management can help Verizon Communications navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Diversified Telecommunication Services space and any emerging trends that could impact Verizon Communications' business and its evolving consumer preferences.
  • Compare Verizon Communications' performance and market position to its competitors. Analyze how Verizon Communications is positioned in terms of product offerings, innovation, and market share.
  • Check if Verizon Communications pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Verizon Communications' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Verizon Communications stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Verizon Communications is a good investment.

Already Invested in Verizon Communications?

The danger of trading Verizon Communications is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Verizon Communications is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Verizon Communications. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Verizon Communications is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Verizon Communications offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Verizon Communications' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Verizon Communications Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Verizon Communications Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Verizon Communications. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
For more information on how to buy Verizon Stock please use our How to Invest in Verizon Communications guide.
Note that the Verizon Communications information on this page should be used as a complementary analysis to other Verizon Communications' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

Complementary 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.
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Is Verizon Communications' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Verizon Communications. If investors know Verizon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Verizon Communications listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.03)
Dividend Share
2.635
Earnings Share
2.75
Revenue Per Share
31.815
Quarterly Revenue Growth
(0)
The market value of Verizon Communications is measured differently than its book value, which is the value of Verizon that is recorded on the company's balance sheet. Investors also form their own opinion of Verizon Communications' value that differs from its market value or its book value, called intrinsic value, which is Verizon Communications' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Verizon Communications' market value can be influenced by many factors that don't directly affect Verizon Communications' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Verizon Communications' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Verizon Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Verizon Communications' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.