Verizon Communications provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The company was founded in 1983 and is based in New York, New York.
VZ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for VZ, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Verizon Communications Inc ranked in the 35th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 24%. As for the metrics that stood out in our discounted cash flow analysis of Verizon Communications Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.82 years, is -0.03% -- higher than only 23.58% of stocks in our DCF forecasting set.
Verizon Communications Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 12.14% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 15.74% of stocks in its sector (Communication Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TSU, RBBN, CBB, CCOI, and TDS can be thought of as valuation peers to VZ, in the sense that they are in the Communication Services sector and have a similar price forecast based on DCF valuation.