Verizon Communications Inc. (VZ) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+126.4%

$101.80

vs $44.98 price

Levered DCF

$65.12

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.2

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	10.03×	9.64×	13.66×	7.79×	9.77×	13.66×	13.18×	14.95×
P/B	1.65×	1.7×	1.72×	1.82×	2.64×	3.59×	4.14×	4.37×
P/S	1.25×	1.25×	1.18×	1.21×	1.61×	1.9×	1.93×	1.77×
EV / EBITDA	7.41×	7×	8.26×	6.93×	7.95×	8.26×	8.71×	8.18×
Gross margin	45.6%	46.6%	45.9%	44.3%	45.7%	47.1%	45.8%	44.5%
Operating margin	21.2%	22.7%	21.5%	22.3%	23.9%	23.3%	23.5%	22.9%
Net margin	12.4%	13.0%	8.7%	15.5%	16.5%	13.9%	14.6%	11.9%
Current ratio	0.91×	0.63×	0.69×	0.75×	0.78×	1.38×	0.84×	0.91×
Debt / equity	1.92×	1.7×	1.89×	1.93×	2.18×	2.22×	2.17×	2.13×
Interest coverage	4.37×	4.6×	5.22×	8.51×	9.14×	6.99×	6.56×	6.21×
Dividend yield	6.7%	6.7%	6.9%	6.5%	4.8%	4.2%	3.9%	4.2%
Payout ratio	66.9%	64.3%	94.9%	50.8%	47.3%	57.5%	52.0%	62.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.4%	17.6%	12.6%	23.3%	27.0%	26.2%	31.4%	29.2%
Return on invested capital	6.2%	6.9%	6.0%	6.8%	7.4%	8.0%	10.4%	10.5%
Return on assets	4.2%	4.6%	3.1%	5.6%	6.0%	5.6%	6.6%	5.9%
Free cash flow yield	11.4%	11.2%	11.8%	6.3%	8.9%	8.8%	6.7%	7.0%
Earnings yield	10.0%	10.4%	7.3%	12.8%	10.2%	7.3%	7.6%	6.7%
Enterprise value	$353.7B	$332.8B	$331.6B	$339.3B	$390.5B	$371.6B	$384.6B	$342.4B
Net debt / EBITDA	3.8×	3.45×	4.31×	3.55×	3.56×	2.86×	2.96×	2.64×
Cash conversion cycle (days)	-35	29	28	35	40	42	38	40