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:
We started the process of determining a valid price forecast for Verizon Communications Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Verizon Communications Inc ranked in the 37th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Verizon Communications Inc, consider:
Verizon Communications Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 13.43% 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 15.43% of stocks in its sector (Communication Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CABO, TSU, TDS, OTEL, and CBB 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.