NYSE
VZ
Last Price
US $42.34
KEY FIGURES
MKT CAP
$194.3B
EPS
TTM
$4.12
PEG
TTM
N/M
P/E
TTM
11.35x
P/S
TTM
1.41x
YIELD
5.94%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
16.68%
Return on equity
ROIC: 5.99%
Valuation History
11.3X
Price to Earnings
EV/EBITDA: 7.8X
Cash flow
Profit margin
1.50%
(FY vs FY)
EBITDA Y/Y
1.20%
(FY vs FY)
Cash flow Y/Y
-1.27%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $42.34
-76.71%
Default assumptions
EBITDA Multiple
Fair Value
Market $42.34
-14.62%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Verizon Communications Inc. cash flow to debt ratio of 18.51% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
Verizon Communications Inc.'s free cash flow has increased 6.36% from $18.92G last year to $20.13G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Verizon Communications Inc.'s debt to equity ratio is 1.90, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Verizon Communications Inc.'s debt has increased relative to shareholder equity from 1.70 last year to 1.90 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Verizon Communications Inc. has a net debt to EBITDA ratio of 3.80x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Verizon Communications Inc.'s interest coverage ratio of 4.22 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Verizon Communications Inc.'s profit margin has decreased (-4.05%) in the last year from 12.99% to 12.46%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
Verizon Communications Inc.'s short-term liabilities of $62.37G exceed its short-term assets of $56.92G, signaling financial risk
Decreasing performance - ROA.
Verizon Communications Inc.'s return on assets of 4.15% is lower than the 5.00% threshold, indicating inefficient asset utilization
Increasing performance - Absolute return on equity.
Verizon Communications Inc.'s return on equity of 16.68%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Verizon Communications Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Verizon Communications Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Verizon Communications Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Verizon Communications Inc. has a free cash flow yield of 10.36%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Verizon Communications Inc.'s yearly earnings has decreased -1.90% since last year from $17.51G to $17.17G, signaling decreasing performance
Increasing performance - Healthy revenue growth.
Verizon Communications Inc.'s yearly revenue has increased 2.52% since last year from $134.79G to $138.19G, signaling increasing performance
Increasing performance - ROIC.
ROIC 5.99% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Verizon Communications Inc.'s 3-year revenue CAGR of 0.33% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Verizon Communications Inc. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Verizon Communications Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Verizon Communications Inc. is overvalued relative to its fair value price of 9.86 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Verizon Communications Inc. has an earnings yield of 8.86%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Verizon Communications Inc. is overvalued relative to its fair value price of 36.15 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Verizon Communications Inc. has an EV/EBITDA ratio of 7.85x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Verizon Communications Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
Verizon Communications Inc. has a price-to-book ratio of 1.89x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Verizon Communications Inc. has a price-to-sales ratio of 1.40x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue