Verizon Communications Inc.

Verizon Communications Inc.

VZยทNYSE

$46.65

-2.5%
Communication ServicesTelecommunications Services

Verizon Communications Inc., through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Its Consumer segment provides postpaid and prepaid service plans; internet access on notebook computers and tablets; wireless equipment, including smartphones and other handsets; and wireless-enabled internet devices, such as tablets, and other wireless-enabled connected devices comprising smart watches. It also provides residential fixed connectivity solutions, such as internet, video, and voice services; and sells network access to mobile virtual network operators. As of December 31, 2021, it had approximately 115 million wireless retail connections, 7 million wireline broadband connections, and 4 million Fios video connections. The company's Business segment provides network connectivity products, including private networking, private cloud connectivity, virtual and software defined networking, and internet access services; and internet protocol-based voice and video services, unified communications and collaboration tools, and customer contact center solutions. This segment also offers a suite of management and data security services; domestic and global voice and data solutions, such as voice calling, messaging services, conferencing, contact center solutions, and private line and data access networks; customer premises equipment; installation, maintenance, and site services; and Internet of Things products and services. As of December 31, 2021, it had approximately 27 million wireless retail postpaid connections and 477 thousand wireline broadband connections. 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.

At a Glance

Live Snapshot
Market Cap$194.79B
EPS4.0600
P/E Ratio11.49
Earnings Date07/21/2026
Verizon Communications Inc.

Verizon Communications Inc. Fair Value Envelope

VZ ยท NYSE

Our analysis suggests that VZ has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $46.65, this represents a potential HIDDEN relative to our calculated worth for Verizon Communications Inc..

Intrinsic Value
Current Price: $46.65

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$802.7B
+ Cash & Equivalents$19.0B
Firm Value$821.8B
- Debt$200.6B
Equity Value$621.2B
/ Shares Outstanding4,216,425,489B
DCF Value$147
UNDERVALUED BY 216%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
$39.5B
$42.0B
$44.7B
$47.5B
$50.6B
$53.8B
$57.2B
$60.8B
$64.7B
$68.8B
Maintenance CapEx
-$3.6B
-$3.8B
-$4.1B
-$4.4B
-$4.6B
-$4.9B
-$5.2B
-$5.6B
-$5.9B
-$6.3B
Owner Earnings
$35.9B
$38.2B
$40.6B
$43.2B
$45.9B
$48.8B
$52.0B
$55.3B
$58.8B
$62.5B
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$33.2B
$32.7B
$32.2B
$31.7B
$31.3B
$30.8B
$30.3B
$29.9B
$29.4B
$29.0B
Terminal Value represents 61.3% of Enterprise Value