TGM's two-stage DCF values Verizon Communications Inc. (VZ) between $31.78 and $89.93 depending on assumptions, with a base case of $51.46. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth (floored at 2%)), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$50.16 is justified only if free cash flow grows about +1.7% a year (fading to 2.5% long-run) at a 7.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 8.5% | $31.78 |
| Base case | 2.0%/yr | 7.5% | $51.46 |
| Optimistic | 5.0%/yr | 6.5% | $89.93 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 7, 2026 · assumptions not provided | $106.08 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$50.16
Market-Implied Growth
+1.7%/yr
vs -1.3% 5Y actual
Model Scenario Range
$31.78 – $89.93
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for VZ (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $18.8B · 4.18B shares · net debt $162.6B
Estimated Fair Value
$51.46
+2.6% vs $50.16
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $50.16; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $77.97 | $92.38 | $112 | $138 | $179 |
| 6.5% | $54.54 | $63.20 | $74.00 | $87.88 | $106 |
| 7.5% | $38.93 | $44.63 | $51.46 | $59.80 | $70.21 |
| 8.5% | $27.77 | $31.77 | $36.43 | $41.92 | $48.51 |
| 9.5% | $19.41 | $22.34 | $25.69 | $29.55 | $34.04 |
