VZ

Verizon

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 B… 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.
Market price
USD 45.25
Within modeled range
Base value (Dividend discount model) is 14.6% below the market price
Data: Price updated 06 Nov 2026 14:42; TTM through 30 Sep 2026, period ended 30 Sep 2026 from EODHD (downloaded 2 h ago). Last earnings: 26 Oct 2026
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Verdict

Priced within the modelled range

PriceUSD 45.25
Fair value range30.20–53.19base 38.63
Estimate reliabilityLow
5-year outlook–

5-year outlook: Not shown because confidence is low: Free-cash-flow DCF is somewhat apart.

Other models: USD 25.28–96.66 (median 54.14). The recommended value is in line with them.

Why: Dividends are a large share of earnings, so the cash paid to shareholders is the best guide to value.

Details and the full model are below.

Dividend discount model

Market price within modeled range

Uses reported dividends of USD 2.8157 per share from TTM through 30 Sep 2026, with 2.9% perpetual growth (base growth capped at the terminal rate) and 10.4% discount rates. The range varies growth and discount assumptions by 1 percentage point; it is illustrative, not a statistical confidence interval or investment advice.

Assumptions: growth 2.93%, discount rate 10.40%, terminal growth 2.90% (sector defaults). See a worked example.

Blended growth assumption: 2.9% (sector default 7.0%, own revenue history 0.8%, analyst revenue consensus 1.9%).

Analyst consensus expects revenue growth of 1.9% a year; the growth assumption used is 2.9%.

Adjust assumptions

Why this model: Dividends are a large share of earnings, so the cash paid to shareholders is the best guide to value.

Compare models
  • Recommended: Dividend discount model — USD 38.63 (-14.6%)
  • EPS-based Gordon proxy — USD 54.14 (+19.6%)
    Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
  • DCF (trailing free cash flow) — USD 25.36 (-43.9%)
    Not used: Not chosen: Dividend discount model ranks ahead of it for this company.
  • FCFF (steady state) — USD 25.28 (-44.1%)
    Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
  • EV/EBITDA (12x) — USD 96.66 (+113.6%)
    Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
  • Fade DCF (10-year growth fade) — USD 25.36 (-44.0%)
    Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
  • EV/Sales (Rule of 40) — USD 210.28 (+364.7%)
    Not used: Used only when cash-flow models land far below the price; here they do not.
Illustrative range / share USD 30.20–53.19
Base scenario / share USD 38.63
Margin of safety (share of value) Priced for base-to-bull outcomes
Bear USD 30.20-49.8%
Base USD 38.63-17.1%
Bull USD 53.1914.9%

Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.

Market-implied expectations 3.9% dividend growth

At USD 45.25 the market implies perpetual dividend growth of about this rate (discount rate 10.4%).

Compare: the market implies 3.9% a year, this model assumes 2.9%. The market expects more than this model does, which is why it reads as overvalued.

Sensitivity: base value per share

How the Dividend discount model value changes with growth (rows) and discount rate (columns). Green cells are above the current price. Dividend growth cannot exceed the long-run rate, so duplicate capped scenarios are omitted.

These are assumption-based scenarios, not a confidence interval. Scroll horizontally to see all discount rates.

Growth \ Discount 8.4%9.4%10.4%11.4%12.4%
-1.1% 29.31 26.52 24.22 22.28 20.63
0.9% 37.88 33.42 29.91 27.06 24.70
2.9% 52.68 44.57 38.63 34.09 30.50

Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.

Price history and fair value

No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.

More detail: quality, peers, price history, dividends and financials

Quality score: 82 / 100

Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.

Profitability5 of 5 years profitable20 / 20
Cash generationfree cash flow positive in 5 of 5 years20 / 20
Growthrevenue +0.5% a year12 / 20
Balance sheetnet debt 3.8x EBITDA10 / 20
MarginsEBITDA margin 35%20 / 20

Peers in Communication Services

Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.

CompanyPriceMargin of safetyP/EP/BYieldQuality
VZ (this company) USD 45.25 -17.1% 11.5 1.8 6.2% 82
VOD.L Vodafone Group Public Limited Company GBP 1.14 43.5% – 0.6 3.3% 66
PUB.PA Publicis Groupe S.A. EUR 102.40 42.1% 15.7 2.5 3.5% 90
CMCSA Comcast USD 24.23 40.8% 7.6 0.9 5.6% 82
TEF.MC Telefonica, S.A. EUR 3.34 34.2% – – 9.0% 59
INF.L Informa plc GBP 8.40 23.0% – 1.9 2.4% 66
SONY Sony Group Corporation USD 26.66 22.1% – – – 82
EMBRAC-B.ST Embracer Group AB SEK 95.20 18.7% – 1.0 – 56
GOOG Alphabet Inc. (Class C) USD 286.13 10.4% 15.0 5.2 0.3% 100
Peer median 15.0 1.5

Dividends

Paid in the last 12 months: USD 2.81 per share · yield 6.22% at the current price.

YearDividends per share
2026 (so far)2.814
20252.724
20242.673
20232.624
20222.573
20212.524
Sector Communication Services
Exchange NASDAQ
Currency USD

Trailing 12-month financials

TTM through 30 Sep 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 14:11

RevenueUSD 139,387,000,000
EBITDAUSD 48,889,000,000
EBITUSD 29,375,000,000
Net incomeUSD 16,420,000,000
Free cash flowUSD 21,111,000,000
Capital expendituresUSD 17,939,000,000
DebtUSD 188,968,000,000
CashUSD 4,495,000,000
Working capitalUSD -24,760,000,000
Shares outstanding4,161,000,000
Reported dividends per shareUSD 2.8157