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 45th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 10%. 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 9.28% 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 12.54% of stocks in its sector (Communication Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GTT, CHL, RCI, ORAN, and CCOI 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.
The redemption price for the 4.60% Notes will be equal to the greater of (i) 100% of the principal amount of the 4.60% Notes being redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 4.60% Notes being redeemed (exclusive of interest accrued to the Redemption Date), as the case may be, discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the 4.60% Notes) plus 25 basis points (the “4.60% Notes Redemption Price”), plus, in either case, accrued and unpaid interest on the principal amount being redeemed to but excluding the Redemption Date. The 4.60% Notes Redemption Price will be calculated in accordance with the terms of the 4...
The mobility growth story from the emergence of the smartphone over a decade ago is long gone, but Verizon's network is proving to be a basic staple among customers during the current recession. Q1 2020 wasn't perfect, but it was good enough, and next-gen 5G mobile networks should provide enough of a bump in the coming years to keep Verizon in the lead -- both in terms of its network's technological advantage and in dividend reliability. Fast download speeds tend to dominate the headlines, and in this regard Verizon shines.