Verizon Communications Inc. (VZ) DCF Valuation
Transparent DCF models put Verizon Communications Inc. (VZ)'s fair value in a range of $27.96 – $118.98 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $45.78 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $45.78, the market is pricing in roughly +8.2%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of -1.3%. The price is betting on acceleration above its track record.
Current Price
$45.78
Fair-Value Range
$27.96 – $118.98
Market-Implied Growth
+8.2%/yr
vs -1.3% 5Y actual
VZ DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $17.0B · 4.18B shares · net debt $162.6B
Estimated Fair Value
$27.96
-38.9% vs $45.78
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $45.78; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $44.20 | $48.47 | $53.50 | $59.55 | $66.94 |
| 9.0% | $32.47 | $35.39 | $38.75 | $42.67 | $47.31 |
| 10.0% | $23.54 | $25.61 | $27.96 | $30.65 | $33.74 |
| 11.0% | $16.52 | $18.04 | $19.74 | $21.65 | $23.81 |
| 12.0% | $10.86 | $12.00 | $13.26 | $14.66 | $16.23 |