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Verizon Communications Inc (VZ) Fair Value & Analysis

Communication Services · US · Market cap $177B

VC Verizon Communications Inc logo Verizon Communications Inc VZ · US
Price$46.99
Fair Value$65.22
Upside+38.8%
Quality59/100
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Weak Growth
Solidly profitable · 12.5% net margin
Moderate debt · generates free cash flow
6.48% dividend yield
Ranks above peers (11/15)
Wide moat 66/100
Evidence: High Range $30.78 – $96.67 Share as image

Fair value as of: Jul 15, 2026

From 25 valuation models · updated 23 days ago

Share price +12.2% over the past month.

A solid business, screening 39% undervalued on our models.

What matters now

  • The model range is unusually wide ($30.78 to $96.67). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

$49.77 $25.60 Fair Value $65.22 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range $25.60 – $49.77 · fair‑value band $30.78 – $96.67 · the $46.99 price screens below the $65.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Verizon Communications Inc (VZ) currently trades at $46.99, while our model-based Fair Value estimate is $65.22, implying the stock looks roughly 38.8% undervalued today. We read business quality at 59/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Verizon Communications Inc generated revenue of $139B at a net margin of 12.5%. Revenue grew 2.9% year over year. It earns a return on equity of 17.2%. Net debt stands at $182B. Fundamentals as of Jul 15, 2026

Our scenario range runs from $30.78 (bear case) to $96.67 (bull case); at $46.99, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 8% below its 52-week high and 26% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at 39%, VZ screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $24.85 $47.74 $79.45 80
Residual Income $26.81 $33.28 $73.53 76
Rev-Margin DCF $24.94 $55.31 $88.56 74
All 25 models by family
DCF Models
FCF DCF $23.51 $48.52 $84.93 38
Owner Earnings $19.31 $42.31 $75.80 31
5Y Revenue Exit $24.94 $54.98 $92.42 39
5Y EBITDA Exit $52.65 $105.05 $164.64 41
5Y P/E Exit $24.73 $54.62 $84.79 38
10Y Revenue Exit $22.22 $49.15 $83.35 36
10Y EBITDA Exit $41.35 $83.27 $136.73 37
10Y P/E Exit $23.79 $48.90 $77.72 35
Earnings-Based
Graham-Dodd $27.97 $72.15 $93.98 54
PEG = 1.0 $13.59 $19.41 $25.24 46
EPV $26.33 $35.53 $43.58 59
Dividend Discount
Gordon GGM $25.25 $49.82 $83.27 70
DDM Multi-Stage $25.25 $38.67 $53.11 61
Multiples
P/E Multiple $61.69 $82.26 $102.82 63
P/S Multiple $52.44 $69.92 $87.40 58
P/B Multiple $52.44 $69.92 $87.40 55
EV/EBIT $65.74 $97.28 $128.81 53
EV/EBITDA $82.31 $119.37 $156.42 54
EV/Revenue $29.06 $53.88 $78.70 43
Asset-Based
NCAV (Graham) $12.51 $16.76 $25.02 50
Growth DCF
Growth DCF $24.85 $47.74 $79.45 80
Rev-Margin DCF $24.94 $55.31 $88.56 74
Economic Profit
Residual Income $26.81 $33.28 $73.53 76
ROIC Compounder $26.60 $39.68 $55.42 72
Growth Earnings
Growth-Adj P/E $48.19 $68.84 $89.49 68

Widest divergence: Multiples ($69.92) versus Asset-Based ($16.76). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $139B
Revenue growth (YoY) +2.9%
Net margin 12.5%
Return on equity 17.2%
Free cash flow $20.1B FY2025
P/E ratio 10.4
More key figures
Operating margin 25.2%
EPS (TTM) $4.08
Dividend yield 6.5%
EPS growth (YoY) +4.3%
Net debt $182B FY2025

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 51 · Market factors (momentum, volatility) 63

Profitability 40
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 72
Earnings quality: real cash, not paper profit
Fin. Strength 21
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 65
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and streaming products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business).

Full company description

Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and streaming 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, smartwatches, 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 and wireline broadband, advanced communication services, 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 distributes its products and services through direct channels, company-operated stores, digital and omnichannel platforms, indirect agents, business solution resellers, and national retailers. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Verizon Communications Inc reported revenue of $138B in FY2025 versus $134B in FY2021, a compound +0.8%/yr. Reported net income was $17.2B in FY2025, compounding −6.1%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$138B
Latest YoY
+2.5%
Avg. growth/yr (3Y)
+0.3%
Avg. growth/yr (5Y)
+1.5%
Avg. growth/yr (40Y)
+7.0%
Revenue +0.8%/yr
FY21 $134B
FY22 $137B
FY23 $134B
FY24 $135B
FY25 $138B
Net income −6.1%/yr
FY21 $22.1B
FY22 $21.3B
FY23 $11.6B
FY24 $17.5B
FY25 $17.2B

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Cite: Fair Value Calculator (2026). "Verizon Communications Inc Fair Value". https://www.fairvalue-calculator.com/stock/VZ

Peer Group

Telecom Services · 252 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 59 · Top 25%
Fair Value upside +39% · Above median
Return on equity (TTM) 17% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 12% · Above median
Operating margin (TTM) 25% · Top 25%
Revenue growth 3% · Above median
Dividend yield (TTM) 6.5% · Top 25%
Debt / equity 1.34× · Higher than 75% of peers

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 10.4× · Cheaper than 75% of peers
P/B 1.70× · Pricier than median
P/S (TTM) 1.27× · Pricier than median
P/FCF 8.8× · Pricier than median
EV/EBITDA 5.8× · Cheaper than median
PEG 0.80× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 85 · sector 29
FUTURE 15 · sector 15
PAST 69 · sector 28
HEALTH 33 · sector 89
DIVIDEND 100 · sector 73

Insider activity: 42/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

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Frequently asked questions

Is Verizon Communications Inc (VZ) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of $65.22 versus a price of $46.99, about +39% (undervalued).
What is the fair value of VZ?
Our model-based fair value for Verizon Communications Inc is $65.22 (as of Jul 15, 2026), built from audited fundamentals. The current price is $46.99.
What is the quality score of VZ?
Verizon Communications Inc has a Quality Score of 59/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Verizon Communications Inc (VZ)?
Verizon Communications Inc reported trailing-twelve-month revenue of about $139B (latest available figure, as of Jul 15, 2026).
What is the net profit margin of VZ?
The net profit margin of Verizon Communications Inc is about 12.5%, meaning it keeps roughly 12.5% of revenue as net income. Based on the latest reported figures.
Does Verizon Communications Inc pay a dividend?
Verizon Communications Inc currently shows a dividend yield of about 5.93% relative to its recent price (as of Jul 15, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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