Verizon Communications Valuation
| VZ Stock | USD 44.38 0.01 0.02% |
At this time, the company appears to be overvalued. Verizon Communications has a current Real Value of $40.34 per share. The regular price of the company is $44.38. Our model measures the value of Verizon Communications from inspecting the company fundamentals such as Shares Outstanding of 4.21 B, operating margin of 0.24 %, and Return On Equity of 0.1 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Verizon Communications' valuation include:
Price Book 1.9391 | Enterprise Value 356 B | Enterprise Value Ebitda 9.1047 | Price Sales 1.3914 | Forward PE 9.3721 |
Overvalued
Today
Please note that Verizon Communications' price fluctuation is very steady at this time. Calculation of the real value of Verizon Communications is based on 3 months time horizon. Increasing Verizon Communications' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Verizon Communications is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Verizon Stock. However, Verizon Communications' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 44.38 | Real 40.34 | Target 37.26 | Hype 44.34 | Naive 46.06 |
The intrinsic value of Verizon Communications' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Verizon Communications' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Verizon Communications helps investors to forecast how Verizon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Verizon Communications more accurately as focusing exclusively on Verizon Communications' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Verizon Communications' intrinsic value based on its ongoing forecasts of Verizon Communications' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Verizon Communications' closest peers.
Verizon Communications Cash |
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Verizon Valuation Trend
Analysing the historical paterns of Verizon Communications' enterprise value and its market capitalization is a good way to estimate and gauge the value of Verizon Communications over time and is usually enough for investors to make rational market timing decisions.
Verizon Revenue by Product
Verizon Communications Total Value Analysis
Verizon Communications is at this time forecasted to have takeover value of 355.99 B with market capitalization of 186.78 B, debt of 174.94 B, and cash on hands of 2.6 B. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Verizon Communications fundamentals before making investment evaluation based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
355.99 B | 186.78 B | 174.94 B | 2.6 B |
Verizon Communications Investor Information
About 66.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.94. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Verizon Communications has Price/Earnings To Growth (PEG) ratio of 1.18. The entity last dividend was issued on the 10th of October 2024. The firm had 1000000:93 split on the 2nd of July 2010. Based on the key indicators related to Verizon Communications' liquidity, profitability, solvency, and operating efficiency, Verizon Communications may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.21 | 0.1708 |
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| Total Cash From Operating Activities | 24.8 B | 37.5 B |
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| Operating Income | 15 B | 22.9 B |
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Verizon Communications Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Verizon Communications has an asset utilization ratio of 35.23 percent. This suggests that the Company is making $0.35 for each dollar of assets. An increasing asset utilization means that Verizon Communications is more efficient with each dollar of assets it utilizes for everyday operations.Verizon Communications Ownership Allocation
Verizon Communications shows a total of 4.21 Billion outstanding shares. Over half of Verizon Communications' outstanding shares are owned by institutional holders. These institutional holders are typically referred to as corporate investors that take positions in a given instrument to benefit from reduced trade commissions. On November 11, 2024, Representative Ro Khanna of US Congress acquired $15k to $50k worth of Verizon Communications's common stock.Verizon Communications Profitability Analysis
The company generated the yearly revenue of 133.97 B. Reported Net Income was 12.1 B with gross profit of 77.7 B.Verizon Communications Past Distributions to stockholders
About Verizon Communications Valuation
Our relative valuation model uses a comparative analysis of Verizon Communications. We calculate exposure to Verizon Communications's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Verizon Communications's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 79.1 B | 46.5 B | |
| Pretax Profit Margin | 0.13 | 0.18 | |
| Operating Profit Margin | 0.17 | 0.21 | |
| Net Profit Margin | 0.09 | 0.07 | |
| Gross Profit Margin | 0.59 | 0.49 |
A single share of Verizon Communications represents a small ownership stake in the entity. As a stockholder of Verizon, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Verizon Communications Dividends Analysis For Valuation
Dividend Payout Ratio is likely to rise to 1.36 in 2024, whereas Dividends Paid is likely to drop slightly above 5.9 B in 2024. . At this time, Verizon Communications' Retained Earnings are fairly stable compared to the past year. Retained Earnings Total Equity is likely to rise to about 99.5 B in 2024, whereas Earnings Yield is likely to drop 0.05 in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 11 B | 5.9 B | |
| Dividend Yield | 0.07 | 0.05 | |
| Dividend Payout Ratio | 0.95 | 1.36 | |
| Dividend Paid And Capex Coverage Ratio | 1.26 | 0.97 |
There are various types of dividends Verizon Communications can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Verizon shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Verizon Communications directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Verizon pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Verizon Communications by the value of the dividends paid out.
Verizon Communications Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 4.2 B | |
| Quarterly Earnings Growth Y O Y | -0.31 | |
| Forward Price Earnings | 9.3721 |
Verizon Communications Current Valuation Indicators
Valuation refers to the process of determining the present value of Verizon Communications and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Verizon we look at many different elements of the entity such as Verizon's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Verizon Communications, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Verizon Communications' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Verizon Communications' worth.Additional Tools for Verizon Stock Analysis
When running Verizon Communications' price analysis, check to measure Verizon Communications' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Verizon Communications is operating at the current time. Most of Verizon Communications' value examination focuses on studying past and present price action to predict the probability of Verizon Communications' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Verizon Communications' price. Additionally, you may evaluate how the addition of Verizon Communications to your portfolios can decrease your overall portfolio volatility.