NYSE
VZ
Last Price
US $48.22
KEY FIGURES
MKT CAP
$201.3B
EPS
TTM
$3.88
EPS Growth (1Y)
-2.17%
PEG
TTM
-
P/E
TTM
12.43x
P/S
TTM
1.45x
YIELD
5.80%
GROWTH (5Y CAGR)
Profit margin
Current Ratio
Capital Returns
15.52%
Return on equity
ROIC: 5.84%
Valuation History
12.6X
Price to Earnings
EV/EBITDA: 8.1X
Cash flow
Profit margin
Revenue
1.50%
EBITDA
1.20%
Cash flow
-1.27%
Cash Flow (DCF)
Fair Value
Market $48.22
-79.55%
Default assumptions
EBITDA Multiple
Fair Value
Market $48.22
-25.03%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Cash flow to 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.
Free cash flow growth
Verizon Communications Inc.'s free cash flow has increased 6.36% from $18.92B last year to $20.13B, signaling increasing performance
Debt-to-equity ratio
Verizon Communications Inc.'s debt to equity ratio is 1.81, which means that the company's assets are unhealthy financed, signaling financial risk.
Debt-to-equity trend
Verizon Communications Inc.'s debt has increased relative to shareholder equity from 1.70 last year to 1.81 today, signaling weakened financials
Net debt to 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
Interest coverage
Verizon Communications Inc.'s interest coverage ratio of 3.88 indicates that earnings with good margin can cover interest payments on company debt
Profit margin growth
Verizon Communications Inc.'s profit margin has decreased (10.35%) in the last year from 12.99% to 11.64%, signaling decreasing performance
Current ratio
Verizon Communications Inc.'s short-term liabilities of $62.37B exceed its short-term assets of $56.92B, signaling financial risk
Return on assets
Verizon Communications Inc.'s return on assets of 3.94% is lower than the 5.00% threshold, indicating inefficient asset utilization
Return on equity
Verizon Communications Inc.'s return on equity of 15.52%, is higher than 15.00%, indicating good performance
Earnings quality
Verizon Communications Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Earnings stability
Verizon Communications Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings
Positive free cash flow
Verizon Communications Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Free cash flow yield
Verizon Communications Inc. has a free cash flow yield of 10.25%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Earnings growth
Verizon Communications Inc.'s yearly earnings has decreased 1.90% since last year from $17.51B to $17.17B, signaling decreasing performance
Revenue growth
Verizon Communications Inc.'s yearly revenue has increased 2.52% since last year from $134.79B to $138.19B, signaling increasing performance
Return on invested capital
ROIC 5.84% (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.
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
Revenue consistency
Verizon Communications Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance
Return on equity consistency
Verizon Communications Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity
Cash Flow Valuation (DCF)
Verizon Communications Inc. is overvalued relative to its fair value price of 9.86 based on Discounted Cash Flow model
Earnings yield (TTM)
Verizon Communications Inc. has an earnings yield of 8.25%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
EBITDA Valuation
Verizon Communications Inc. is overvalued relative to its fair value price of 36.15 based on EBITDA multiple model
EV/EBITDA (FY)
Verizon Communications Inc. has an EV/EBITDA ratio of 7.92x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
PEG ratio (TTM/FY)
Verizon Communications Inc.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.
Price-to-book ratio (FY)
Verizon Communications Inc. has a price-to-book ratio of 1.86x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Price-to-sales ratio (TTM)
Verizon Communications Inc. has a price-to-sales ratio of 1.41x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue