Verizon Communications Inc.

Communication ServicesTelecommunications ServicesNYSE

$47.09

Market Cap: $198.61B

Verizon Communications Inc. (VZ) Valuation Summary

Updated May 10, 2026 17:27

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$46.07 – $2,126.30	$122.37	+159.9%
Growth Exit 10Y	$47.80 – $1,962.34	$118.96	+152.6%
EBITDA Exit 5Y	$2.01 – $96.75	$45.21	-4.0%
EBITDA Exit 10Y	$14.66 – $111.53	$55.38	+17.6%
▸ Trading Multiples
P/E	$19.13 – $81.10	$51.47	+9.3%
EV/EBITDA	$18.60 – $71.38	$28.50	-39.5%
EV/Revenue	$26.08 – $50.11	$35.89	-23.8%
▸ PEG
PEG Fair Value	$80.58 – $80.58	$80.58	+71.1%
▸ Earnings Power Value
Earnings Power Value	$24.90 – $72.92	$42.63	-9.5%
▸ Dividend Discount
Dividend Discount	$33.57 – $76.45	$48.02	+2.0%

Valuation History

DCF Analysis

Fair Value

$122.37

Market Price

$47.09

Upside / Downside

+159.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Verizon Communications Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.5% to 0.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 69, DPO 61, DIO 12). At a 5.7% WACC with mid-year discounting, the terminal value (86% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $122.37 per share, suggesting VZ is undervalued by 159.9% at the current price of $47.09.

FCFF Present Value Calculation

WACC

5.74%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	26,446	26,787	27,094	27,580	27,803	28,498
(−) Net Interest	5,475	5,546	5,609	5,710	5,756	5,900
(+) D&A	20,159	20,358	19,321	19,927	20,768	21,287
EBITDA	52,080	52,690	52,023	53,217	54,327	55,686

(−) Tax	6,306	6,387	6,460	6,576	6,629	6,795
(−) CapEx	21,280	21,554	21,801	22,192	22,372	22,932
(−) ΔWC	10,792	214	193	305	140	144
Free Cash Flow (FCFF)	13,703	24,535	23,570	24,144	25,185	25,815

Terminal Value						797,564
WACC / Discount Rate	5.7%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	13,326	22,566	20,502	19,861	19,594	603,443

Enterprise Value	699,292
Projection Period	95,849	13.7%
Terminal Value	603,443	86.3%

(−) Current Net Debt	181,546

Equity Value	517,746
(/) Outstanding Shares	4,231

Fair Price	$122.37

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
3.7%	$208	$273	$392	$670	$2126
4.7%	$130	$157	$197	$259	$372
5.7%	$89	$103	$122	$148	$186
6.7%	$63	$72	$83	$97	$115
7.7%	$46	$52	$59	$67	$78

Current price: $47.09. Green = undervalued, Red = overvalued.

Fair Value

$118.96

Market Price

$47.09

Upside / Downside

+152.6%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Verizon Communications Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.5% to 2.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 69, DPO 61, DIO 12). At a 5.7% WACC with mid-year discounting, the terminal value (73% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $118.96 per share, suggesting VZ is undervalued by 152.6% at the current price of $47.09.

FCFF Present Value Calculation

WACC

5.74%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	26,446	26,787	27,094	27,580	27,803	28,138	28,578	29,128	29,793	30,579	31,344
(−) Net Interest	5,475	5,546	5,609	5,710	5,756	5,826	5,917	6,030	6,168	6,331	6,489
(+) D&A	20,159	20,358	19,321	19,927	20,768	21,840	22,112	22,401	22,728	23,084	23,661
EBITDA	52,080	52,690	52,023	53,217	54,327	55,804	56,607	57,559	58,689	59,995	61,494

(−) Tax	6,306	6,387	6,460	6,576	6,629	6,709	6,814	6,945	7,104	7,291	7,473
(−) CapEx	21,280	21,554	21,801	22,192	22,372	22,642	22,996	23,438	23,973	24,606	25,221
(−) ΔWC	10,792	214	193	305	140	210	276	345	417	494	506
Free Cash Flow (FCFF)	13,703	24,535	23,570	24,144	25,185	26,243	26,521	26,831	27,195	27,603	28,294

Terminal Value											874,139
WACC / Discount Rate	5.7%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	13,326	22,566	20,502	19,861	19,594	19,309	18,455	17,658	16,927	16,249	500,405

Enterprise Value	684,852
Projection Period	184,447	26.9%
Terminal Value	500,405	73.1%

(−) Current Net Debt	181,546

Equity Value	503,306
(/) Outstanding Shares	4,231

Fair Price	$118.96

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
3.7%	$212	$272	$380	$634	$1962
4.7%	$133	$157	$191	$245	$343
5.7%	$91	$103	$119	$141	$172
6.7%	$65	$72	$81	$92	$106
7.7%	$48	$52	$58	$64	$72

Current price: $47.09. Green = undervalued, Red = overvalued.

Fair Value

$45.17

Market Price

$47.09

Upside / Downside

-4.1%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Verizon Communications Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.5% to 0.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 69, DPO 61, DIO 12). At a 5.7% WACC with mid-year discounting, the terminal value (74% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $45.21 per share, suggesting VZ is fairly valued by 4.0% at the current price of $47.09.

FCFF Present Value Calculation

WACC

5.74%

3% – 20%

EV/EBITDA Exit Multiple

6.57x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	26,446	26,787	27,094	27,580	27,803	28,498
(−) Net Interest	5,475	5,546	5,609	5,710	5,756	5,900
(+) D&A	20,159	20,358	19,321	19,927	20,768	21,287
EBITDA	52,080	52,690	52,023	53,217	54,327	55,686

(−) Tax	6,306	6,387	6,460	6,576	6,629	—
(−) CapEx	21,280	21,554	21,801	22,192	22,372	—
(−) ΔWC	10,792	214	193	305	140	—
Free Cash Flow (FCF)	13,703	24,535	23,570	24,144	25,185	—

Peers' EBITDA Multiple						6.6x
Terminal Value						365,854
WACC / Discount Rate	5.74%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	13,326	22,566	20,502	19,861	19,594	276,808

Enterprise Value	372,657
Projection Period	95,849	25.7%
Terminal Value	276,808	74.3%

(−) Current Net Debt	181,546
Equity Value	191,111
(÷) Outstanding Shares	4231M
Fair Price	$45	-4.1%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	2.6x	4.6x	6.6x	8.6x	10.6x
3.7%	$9	$31	$53	$75	$97
4.7%	$7	$28	$49	$70	$91
5.7%	$5	$25	$45	$65	$85
6.7%	$4	$23	$42	$61	$80
7.7%	$2	$20	$38	$56	$75

Current price: $47.09. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$55.35

Market Price

$47.09

Upside / Downside

+17.5%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Verizon Communications Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.5% to 2.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 69, DPO 61, DIO 12). At a 5.7% WACC with mid-year discounting, the terminal value (56% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.6x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $55.38 per share, suggesting VZ is undervalued by 17.6% at the current price of $47.09.

FCFF Present Value Calculation

WACC

5.74%

3% – 20%

EV/EBITDA Exit Multiple

6.57x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	26,446	26,787	27,094	27,580	27,803	28,138	28,578	29,128	29,793	30,579	31,344
(−) Net Interest	5,475	5,546	5,609	5,710	5,756	5,826	5,917	6,030	6,168	6,331	6,489
(+) D&A	20,159	20,358	19,321	19,927	20,768	21,840	22,112	22,401	22,728	23,084	23,661
EBITDA	52,080	52,690	52,023	53,217	54,327	55,804	56,607	57,559	58,689	59,995	61,494

(−) Tax	6,306	6,387	6,460	6,576	6,629	6,709	6,814	6,945	7,104	7,291	—
(−) CapEx	21,280	21,554	21,801	22,192	22,372	22,642	22,996	23,438	23,973	24,606	—
(−) ΔWC	10,792	214	193	305	140	210	276	345	417	494	—
Free Cash Flow (FCF)	13,703	24,535	23,570	24,144	25,185	26,243	26,521	26,831	27,195	27,603	—

Peers' EBITDA Multiple											6.6x
Terminal Value											404,019
WACC / Discount Rate	5.74%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	13,326	22,566	20,502	19,861	19,594	19,309	18,455	17,658	16,927	16,249	231,282

Enterprise Value	415,729
Projection Period	184,447	44.4%
Terminal Value	231,282	55.6%

(−) Current Net Debt	181,546
Equity Value	234,183
(÷) Outstanding Shares	4231M
Fair Price	$55	+17.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	2.6x	4.6x	6.6x	8.6x	10.6x
3.7%	$31	$51	$71	$91	$112
4.7%	$26	$45	$63	$81	$100
5.7%	$22	$39	$55	$72	$89
6.7%	$18	$33	$49	$64	$79
7.7%	$15	$28	$42	$56	$70

Current price: $47.09. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$51.47

Market Price

$47.09

Upside / Downside

+9.3%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Verizon Communications Inc. (VZ) has a fair value of $51.47 based on 6 comparable companies in the Telecommunications Services industry.

P/E Valuation — Telecommunications Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Verizon Communications Inc.VZ	199,238	11.6x	9.5x
T-Mobile US, Inc.TMUS	210,164	20.0x	18.5x
The Walt Disney CompanyDIS	187,517	15.8x	16.0x
AT&T Inc.T	175,515	8.3x	10.9x
Comcast CorporationCMCSA	90,735	4.7x	7.2x
América Móvil, S.A.B. de C.V.AMX	81,845	21.1x	—
Charter Communications, Inc.CHTR	19,045	4.3x	3.8x
Industry Median		12.0x	10.9x
(*) Profit after tax		17,174	20,932
Equity Value		206,719	228,825
(/) Outstanding shares		4,231	4,231
Fair Price		$49	$54

Selected Fair Value (avg of trailing + forward)

$51.47

+9.3%

Fair Value

$28.50

Market Price

$47.09

Upside / Downside

-39.5%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Verizon Communications Inc. (VZ) has a fair value of $28.50 based on 6 comparable companies in the Telecommunications Services industry.

EV/EBITDA Valuation — Telecommunications Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Verizon Communications Inc.VZ	199,238	8.0x	7.7x
T-Mobile US, Inc.TMUS	210,164	10.1x	9.5x
The Walt Disney CompanyDIS	187,517	11.8x	11.0x
AT&T Inc.T	175,515	6.1x	5.9x
Comcast CorporationCMCSA	90,735	4.1x	4.2x
América Móvil, S.A.B. de C.V.AMX	81,845	7.1x	—
Charter Communications, Inc.CHTR	19,045	5.5x	5.5x
Industry Median		6.6x	5.9x
(*) EBITDA		47,715	49,387
= Enterprise Value		313,664	290,589
(-) Net Debt		181,546	181,546
Equity Value		132,118	109,043
(/) Outstanding shares		4,231	4,231
Fair Price		$31	$26

Selected Fair Value (avg of trailing + forward)

$28.50

-39.5%

Fair Value

$35.89

Market Price

$47.09

Upside / Downside

-23.8%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Verizon Communications Inc. (VZ) has a fair value of $35.89 based on 6 comparable companies in the Telecommunications Services industry.

EV/Revenue Valuation — Telecommunications Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Verizon Communications Inc.VZ	199,238	2.8x	2.7x
T-Mobile US, Inc.TMUS	210,164	3.7x	3.5x
The Walt Disney CompanyDIS	187,517	2.4x	2.2x
AT&T Inc.T	175,515	2.6x	2.6x
Comcast CorporationCMCSA	90,735	1.5x	1.6x
América Móvil, S.A.B. de C.V.AMX	81,845	2.8x	—
Charter Communications, Inc.CHTR	19,045	2.1x	2.1x
Industry Median		2.5x	2.2x
(*) Revenue		138,191	143,033
= Enterprise Value		348,055	318,765
(-) Net Debt		181,546	181,546
Equity Value		166,509	137,219
(/) Outstanding shares		4,231	4,231
Fair Price		$39	$32

Selected Fair Value (avg of trailing + forward)

$35.89

-23.8%

PEG Fair Value

Fair Value

$80.58

Market Price

$47.09

Upside / Downside

+71.1%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 16.3% plus 5.8% dividend yield, the company has a fair value of $80.58 based on NTM EPS (FY2026) of $4.95. The current PEG ratio is 0.58.

PEG Ratio

0.58Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 9.5 ÷ (10.5% + 5.8%) = 0.58

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: StalwartPEG highly applicable

PEG works well for steady growers with predictable earnings.

Fair Value Calculation

EPS Growth RateForward	10.5%
Dividend Yield	+5.8%
Adjusted Growth (clamped 8–25%)	16.3%
Fair P/E	16.3x
NTM EPS (FY2026)	$4.95
Fair Value	$80.58

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$4.06	—	—
FY2026E	$4.95	+21.9%	17
FY2027E	$5.25	+6.1%	17
FY2028E	$5.68	+8.1%	15
FY2029E	$6.33	+11.4%	11
FY2030E	$6.69	+5.8%	7

5Y Forward EPS CAGR: 10.5%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$22.1B	$5.32	—
FY2022	$21.3B	$5.06	-4.9%
FY2023	$11.6B	$2.75	-45.7%
FY2024	$17.5B	$4.15	+50.9%
FY2025	$17.2B	$4.06	-2.2%

4Y Historical EPS CAGR: -6.5%

Earnings Power Value

Fair Value

$42.63

Market Price

$47.09

Upside / Downside

-9.5%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 5.7% and normalized earnings of $20.8B, the company has a fair value of $42.63 per share. The EPV range is $24.90 – $72.92 based on WACC sensitivity (4.2% – 7.2%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	20,762	20,762	20,762
(/) WACC	7.2%	5.7%	4.2%
Enterprise Value	286,903	361,920	490,056
(-) Net debt	181,546	181,546	181,546
Equity Value	105,357	180,374	308,510
(/) Outstanding shares	4,231	4,231	4,231
Fair Price	$24.90	$42.63	$72.92

Dividend Discount Model

Fair Value

$48.02

Market Price

$47.09

Upside / Downside

+2.0%

Verdict

Undervalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.9% and projected dividend growth of 4.9%, the fair value is $48.02 per share. The DDM range is $33.57 – $76.45 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$2.71

Dividend Yield

5.78%

Payout Ratio

66.9%

Dividend Coverage

1.50x

FCF Payout Ratio57.0%

DPS CAGR (4Y)1.9%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$2.71	66.9%	+1.7%
2024	$2.67	64.3%	+2.0%
2023	$2.62	94.9%	+1.8%
2022	$2.57	50.8%	+2.1%
2021	$2.52	47.3%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$2.85	4.9%	0.9182	$2.61
2027	$2.98	4.9%	0.8430	$2.52
2028	$3.13	4.9%	0.7740	$2.42
2029	$3.28	4.9%	0.7107	$2.33
2030	$3.44	4.9%	0.6525	$2.25
Terminal Value	$3.53 DPS	2.5%		$35.89

PV of Projected Dividends$12.13

PV of Terminal Value$35.89

Fair Value per Share$48.02

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	2.9%	3.9%	4.9%	5.9%	6.9%
6.9%	$64	$67	$70	$73	$76
7.9%	$52	$55	$57	$60	$62
8.9%	$44	$46	$48	$50	$52
9.9%	$38	$40	$41	$43	$45
10.9%	$34	$35	$36	$38	$40

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.