Verizon Stock Valuation

VZ
 Stock
  

USD 51.64  0.89  1.75%   

Do you wonder what the value of Verizon Communications is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Verizon Communications, is its stock price multiplied by the total number of shares outstanding, calculating Verizon Communications' enterprise value requires a different approach. It uses Verizon Communications' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Verizon Communications Free Cash Flow is fairly stable at the moment as compared to the past year. Verizon Communications reported Free Cash Flow of 5.09 Billion in 2021. Tangible Asset Value is likely to rise to about 110.5 B in 2022, whereas Enterprise Value is likely to drop slightly above 227.8 B in 2022.
Verizon Communications has a current Real Value of $56.78 per share. The regular price of the company is $51.64. At this time, the company appears to be undervalued. Our model measures the value of Verizon Communications from inspecting the company fundamentals such as Return On Equity of 27.81 %, shares outstanding of 4.2 B, and Operating Margin of 33.59 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
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Verizon Communications Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Verizon Communications's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Verizon Most Recent Valuation Data

Price Book
2.56
Price Sales
1.59
Forward Annual Dividend Yield
0.0504
EBITDA
45.1 B
Dividend Share
2.55
Ex Dividend Date
2022-07-07
Beta
0.4
Undervalued
Today 51.64
Please note that Verizon Communications' price fluctuation is very steady at this time. Calculation of the real value of Verizon Communications is based on 3 months time horizon. Increasing Verizon Communications' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Verizon Communications is useful when determining the fair value of the Verizon stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Verizon Communications. Since Verizon Communications is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Verizon Stock. However, Verizon Communications' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
56.78
Real Value
58.28
Upside
Estimating the potential upside or downside of Verizon Communications helps investors to forecast how Verizon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Verizon Communications more accurately as focusing exclusively on Verizon Communications' fundamentals will not take into account other important factors:
Earnings
Estimates (16)
LowProjected EPSHigh
5.345.395.51
Details
Hype
Prediction
LowEstimated ValueHigh
50.1451.6453.14
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.410.420.42
Details
17 Analysts
Consensus
LowTarget PriceHigh
55.0059.8871.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Verizon Communications' intrinsic value based on its ongoing forecasts of Verizon Communications' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Verizon Communications' closest peers. When choosing an evaluation method for Verizon Communications, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Verizon Communications Investments

1.31 Billion

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Verizon Valuation Drivers Correlation

Many accounts on the financial statements of Verizon Communications are highly interrelated and sometimes correlated. Consequently, when conducting Verizon's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Verizon
Click cells to compare fundamentals

Verizon Valuation Trend

Knowing Verizon Communications' actual value is paramount for traders to make sound investment determinations. Verizon Communications' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Verizon Communications' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Verizon Communications' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Verizon Market Cap

Verizon Communications is rated first in market capitalization category among related companies. Market capitalization of Telecom Services industry is at this time estimated at about 1.33 Trillion. Verizon Communications retains roughly 211.82 Billion in market capitalization claiming about 16% of equities listed under Telecom Services industry.
Capitalization  Total debt  Revenue  Workforce  Valuation

Verizon Communications Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Verizon Communications's current stock value. Our valuation model uses many indicators to compare Verizon Communications value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Verizon Communications competition to find correlations between indicators driving Verizon Communications's intrinsic value. More Info.
Verizon Communications is rated first in last dividend paid category among related companies. It is rated first in five year return category among related companies reporting about  1.75  of Five Year Return per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Verizon Communications by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Verizon Communications' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Verizon Communications' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Verizon Communications' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Verizon Communications and how it compares across the competition.

About Verizon Communications Valuation

The equity valuation mechanism determines the current worth of Verizon Communications on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Verizon Communications. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Verizon Communications based exclusively on its fundamental and basic technical indicators. By analyzing Verizon Communications's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Verizon Communications's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Verizon Communications. We calculate exposure to Verizon Communications's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Verizon Communications's related companies.
Last ReportedProjected for 2022
Gross Profit67.1 B61.7 B
Profit Margin 16.51  13.15 
Verizon Communications Inc., through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York. Verizon Communications operates under Telecom Services classification in the United States and is traded on New York Stock Exchange. It employs 118500 people.
Verizon Communications' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Verizon Communications' value is low or high relative to the company's performance and growth projections. Determining the market value of Verizon Communications can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Verizon Communications represents a small ownership stake in the entity. As a stockholder of Verizon, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Verizon Communications Dividends Analysis For Valuation

Please note that Verizon Communications has scaled down on payment of dividends at this time. Verizon Communications Earning Before Interest and Taxes EBIT is fairly stable at the moment as compared to the past year. Verizon Communications reported Earning Before Interest and Taxes EBIT of 22.39 Billion in 2021. Price to Earnings Ratio is likely to rise to 19.56 in 2022, whereas Accumulated Retained Earnings Deficit are likely to drop slightly above 14.7 B in 2022.
There are various types of dividends Verizon Communications can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Verizon shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Verizon Communications directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Verizon pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Verizon Communications by the value of the dividends paid out.

Verizon Communications Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Verizon Communications does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.56
Earnings Quarterly Growth-12.70%
Revenue Growth2.10%
Payout Ratio49.56%
Enterprise Value To Ebitda8.34
Earnings Growth-13.90%
Enterprise Value To Revenue2.80

Verizon Communications Current Valuation Indicators

Valuation refers to the process of determining the present value of Verizon Communications and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Verizon we look at many different elements of the entity such as Verizon's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Verizon Communications' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Verizon Communications' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Verizon Communications, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Verizon Communications' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Verizon Communications' worth.
Also, please take a look at World Market Map. 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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 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 YOY
-0.14
Market Capitalization
213.1 B
Quarterly Revenue Growth YOY
0.021
Return On Assets
0.0506
Return On Equity
0.28
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.
Please note, there is a significant difference between Verizon Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine Verizon Communications value 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.