One-glance verdict
Undervalued
$46.68 our estimate vs market $42.78
Wall Street consensus: $51.90 (11.2% higher than our fair-value estimate)
8% below our estimate, below the bear case
Fundamentals snapshot
Verizon Communications Inc.
VZ · NYQ · Communication Services · Telecom Services
Current price
$42.78
52-week range
$38.39 - $51.68
Market cap
$178.65B
Balance sheet
Stretched
4.37x Stretched
Net debt $192.52B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 0.7% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Insider ownership is only 0.0% (peer median: 17.6%).
- Risk Stock trades 1.3% above its 5-year average P/E.
What this company does
Verizon Communications Inc.
Verizon is a major telecommunications company that makes most of its money selling wireless phone and internet plans to millions of everyday people and businesses. This business model relies on recurring revenue (income that is likely to continue regularly, like a monthly subscription) because customers pay a bill each month for their service. The steady and predictable nature of these payments is important because it helps the company maintain a stable cash flow for its operations and shareholder payments.
How the company got here
Verizon was formed in 2000 from the merger of two large U.S. telephone companies, Bell Atlantic and GTE. Its roots trace back to the breakup of the original AT&T Bell System in the 1980s. Over the years, it grew by acquiring other companies, including MCI in 2006 for its business customer network and Alltel in 2009, which made its wireless division the largest in the U.S. A key moment was forming Verizon Wireless in a joint venture with Vodafone, which Verizon later took full control of. These moves combined separate regional phone companies into a national giant in both wireless and wired communications.
What it actually does
Verizon is a communications company that most people know for its large mobile phone network. It sells wireless plans for smartphones, smartwatches, and tablets, and also sells the devices themselves in its stores and online. Beyond mobile service, the company also provides internet and TV services to homes, primarily through its fiber-optic network called Fios. For businesses and government agencies, Verizon offers a wide range of services including internet, networking, and security.
Verizon Consumer Group
This is the part of the company that serves everyday people and households, and it makes up the majority of Verizon's business. When you buy a smartphone plan or sign up for Fios home internet, you are dealing with the Consumer Group. This segment earns money by charging monthly fees for wireless and internet services. It also makes money from selling devices like iPhones and Android phones, often financed over time.
Verizon Business Group
This division focuses on selling communication services to other companies, from small businesses to large global corporations and government agencies. It provides them with internet access, corporate networking, security services, and advanced communication tools. For example, a large bank might use Verizon Business to securely connect all of its branches and data centers. This segment generates revenue (the money a company brings in from sales) through contracts for these large-scale services.
What management is betting on now
Verizon's main focus is on growing its wireless and broadband internet businesses. The company is investing heavily in expanding its 5G network, which provides faster wireless speeds, and using that technology to offer home internet service, known as Fixed Wireless Access (FWA), in more places. Management is also focused on improving the customer experience to attract and keep more subscribers. By bundling mobile and home internet plans, Verizon hopes to become the central connectivity provider for its customers' digital lives.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$34.44B
Net income
$5.04B
Diluted EPS
1.20
Operating cash flow
$7.98B
Free cash flow
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Sources
Revenue
$36.38B
Net income
$2.34B
Diluted EPS
0.56
Operating cash flow
$9.11B
Free cash flow
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Sources
Revenue
$33.82B
Net income
$4.95B
Diluted EPS
1.17
Operating cash flow
$11.27B
Free cash flow
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Sources
Revenue
$34.50B
Net income
$5.00B
Diluted EPS
1.18
Operating cash flow
$8.97B
Free cash flow
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Sources
Revenue
$33.48B
Net income
$4.88B
Diluted EPS
1.15
Operating cash flow
$7.78B
Free cash flow
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Sources
Revenue
$35.68B
Net income
$5.00B
Diluted EPS
1.18
Operating cash flow
$10.43B
Free cash flow
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Sources
Revenue
$33.33B
Net income
$3.31B
Diluted EPS
0.78
Operating cash flow
$9.91B
Free cash flow
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Sources
Revenue
$32.80B
Net income
$4.59B
Diluted EPS
1.09
Operating cash flow
$9.48B
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $46.68 vs current price $42.78
Wall Street consensus is the average analyst price target: $51.90 (11.2% higher than our fair-value estimate).
Our most-likely fair value is $46.68 a share — about 9.1% above today's price of $42.78, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $192.5B. Interest coverage 4.4x.
Net debt
$192.52B
Interest coverage
4.37x
Verizon Communications Inc.'s profit covers its interest bill about 4.4 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
VZ
BASELINE
Verizon Communications Inc.
Total debt $200.92B Interest coverage 4.37x This is the baseline the peer rows are being compared against.
Total debt $159.75B Interest coverage 3.67x -16% vs VZ Carries about 1.2x less debt cushion than VZ.
Total debt $122.13B Interest coverage 4.92x +12% vs VZ Has roughly the same debt cushion as VZ.
Total debt $94.61B Interest coverage 4.69x +7% vs VZ Has roughly the same debt cushion as VZ.
Total debt $96.82B Interest coverage 2.64x -40% vs VZ Carries about 1.7x less debt cushion than VZ.
What you should know
The case for and against VZ
3 Rewards
2 Risks
Rewards
-
Revenue grew 0.7% last year.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 6.7% with 43-year payout history.
Risks
-
Insider ownership is only 0.0% (peer median: 17.6%).
-
Stock trades 1.3% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
10.44x
Forward P/E
8.12x
P/B
1.73x
P/S
1.28x
EV/EBITDA
7.23x
PEG ratio
0.80x
Profitability
How much profit each dollar creates
Gross margin
58.9%
Operating margin
25.2%
Net margin
12.5%
ROE
17.2%
ROA
5.1%
Health
Liquidity and balance-sheet strength
Debt / equity
1.92x
Current ratio
0.64x
Quick ratio
0.51x
Total debt
$200.92B
Total cash
$8.40B
Growth
How the business has been compounding
Revenue TTM
$139.15B
Revenue 5Y CAGR
0.8%
EPS TTM
4.10
EPS 5Y CAGR
-7.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$37.34B
Free CF TTM
$19.68B
FCF margin
14.1%
Dividend
Shareholder payout
Yield
6.7%
Payout ratio
67.4%
Last ex-div date
2026-07-10