Verizon Communications Inc. (VZ) DCF Valuation
Two independent models estimate Verizon Communications Inc.'s fair value between $27.96 (conservative case) and $119.39 (analyst consensus).
What would today's price require?
$46.93 is justified only if free cash flow grows about +8.4% a year for the next decade — faster than the company has actually grown.
Current Price
$46.93
Fair-Value Range
$27.96 – $119.39
Market-Implied Growth
+8.4%/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
-40.4% vs $46.92
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 $46.92; 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 |
About Verizon Communications Inc.
Verizon Communications Inc. operates as a prominent global provider of diverse communication, technology, information, and entertainment solutions, catering to individuals, enterprises, and government entities worldwide through its various divisions. Its Consumer segment focuses on individual customers, supplying a broad spectrum of mobile service options, including both subscription-based (postpaid) and pay-as-you-go (prepaid) plans. This segment also facilitates internet access for portable devices such as laptop computers and tablets, and offers a variety of wireless hardware, ranging from smartphones and traditional mobile handsets to advanced wireless-enabled gadgets like tablets and smartwatches. Additionally, it delivers essential residential fixed connectivity services, which encompass internet, television, and voice communication. Verizon also extends its network capabilities by providing access to mobile virtual network operators. As of December 31, 2021, this segment reported approximately 115 million wireless retail connections, 7 million wireline broadband connections, and 4 million Fios video connections. The company's Business segment is dedicated to providing enterprise-level solutions. It offers comprehensive network connectivity products, including private networking, private cloud integration, virtual and software-defined networking, and high-speed internet access services. This segment further delivers sophisticated internet protocol-based voice and video communication tools, unified communications and collaboration platforms, and specialized customer contact center solutions. Beyond core connectivity, it provides a suite of managed services and data security offerings. Its extensive portfolio also covers domestic and international voice and data services, such as calling, messaging, conferencing, advanced contact center functionalities, and dedicated private line and data access networks. Moreover, the Business segment furnishes customer premises equipment, along with essential installation, maintenance, and on-site support services, and a wide array of Internet of Things (IoT) products and services. By December 31, 2021, this segment had approximately 27 million wireless retail postpaid connections and 477 thousand wireline broadband connections. Verizon Communications Inc. was incorporated in 1983 and holds its corporate headquarters in New York, New York. The company, which was originally known as Bell Atlantic Corporation, officially adopted its current name in June 2000.
- Sector
- Communication Services
- Industry
- Telecommunications Services
- CEO
- Daniel H. Schulman