Verizon Communications Inc.

LSE:0Q1S Stock Report

Market Cap: US$168.0b

Verizon Communications Valuation

Is 0Q1S undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0Q1S when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0Q1S ($39.53) is trading below our estimate of fair value ($148.12)

Significantly Below Fair Value: 0Q1S is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0Q1S?

Key metric: As 0Q1S is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0Q1S. This is calculated by dividing 0Q1S's market cap by their current earnings.
What is 0Q1S's PE Ratio?
PE Ratio17.2x
EarningsUS$9.80b
Market CapUS$168.05b

Price to Earnings Ratio vs Peers

How does 0Q1S's PE Ratio compare to its peers?

The above table shows the PE ratio for 0Q1S vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.3x
BT.A BT Group
18.3x16.5%UK£14.0b
T AT&T
18.3x17.2%US$164.0b
DTE Deutsche Telekom
23.7x15.7%€141.7b
VOD Vodafone Group
8.8x3.7%UK£17.3b
0Q1S Verizon Communications
17.2x15.6%US$168.0b

Price-To-Earnings vs Peers: 0Q1S is good value based on its Price-To-Earnings Ratio (17.2x) compared to the peer average (17.3x).

Price to Earnings Ratio vs Industry

How does 0Q1S's PE Ratio compare vs other companies in the European Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0Q1S 17.2xIndustry Avg. 17.8xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0Q1S is good value based on its Price-To-Earnings Ratio (17.2x) compared to the European Telecom industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is 0Q1S's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0Q1S PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.2x
Fair PE Ratio22.2x

Price-To-Earnings vs Fair Ratio: 0Q1S is good value based on its Price-To-Earnings Ratio (17.2x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0Q1S forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$39.53
US$47.50
+20.2%
8.3%US$56.00US$40.79n/a24
Dec ’25US$44.45
US$47.34
+6.5%
8.8%US$56.00US$40.79n/a23
Nov ’25US$41.83
US$47.33
+13.2%
8.8%US$56.00US$40.42n/a23
Oct ’25US$44.78
US$47.40
+5.9%
8.5%US$55.00US$40.42n/a24
Sep ’25US$41.23
US$46.34
+12.4%
8.7%US$55.00US$38.76n/a26
Aug ’25US$40.80
US$46.34
+13.6%
8.7%US$55.00US$38.76n/a26
Jul ’25US$41.53
US$45.98
+10.7%
8.5%US$55.00US$38.76n/a26
Jun ’25US$40.85
US$45.66
+11.8%
8.9%US$55.00US$38.76n/a25
May ’25US$39.58
US$45.58
+15.2%
8.5%US$55.00US$38.86n/a26
Apr ’25US$41.90
US$45.51
+8.6%
7.2%US$54.00US$38.86n/a26
Mar ’25US$39.90
US$45.10
+13.0%
9.4%US$54.00US$32.15n/a26
Feb ’25US$42.60
US$45.02
+5.7%
9.7%US$54.00US$32.15n/a26
Jan ’25US$37.50
US$41.08
+9.5%
11.8%US$54.00US$32.15n/a23
Dec ’24US$36.20
US$40.27
+11.2%
12.2%US$54.00US$32.15US$44.4523
Nov ’24US$35.20
US$40.69
+15.6%
16.5%US$64.00US$31.74US$41.8323
Oct ’24US$32.60
US$40.55
+24.4%
16.7%US$64.00US$31.74US$44.7823
Sep ’24US$34.80
US$41.26
+18.6%
15.6%US$64.00US$34.00US$41.2323
Aug ’24US$33.40
US$41.22
+23.4%
15.6%US$64.00US$34.00US$40.8023
Jul ’24US$36.80
US$43.43
+18.0%
14.2%US$64.00US$37.00US$41.5323
Jun ’24US$35.80
US$44.33
+23.8%
15.2%US$64.00US$37.00US$40.8523
May ’24US$38.90
US$44.44
+14.3%
15.1%US$64.00US$37.00US$39.5823
Apr ’24US$38.09
US$45.18
+18.6%
14.9%US$64.00US$37.00US$41.9023
Mar ’24US$38.26
US$45.75
+19.6%
14.8%US$64.00US$37.00US$39.9023
Feb ’24US$41.70
US$45.83
+9.9%
14.8%US$64.00US$37.00US$42.6023
Jan ’24US$39.25
US$46.35
+18.1%
15.9%US$64.00US$37.00US$37.5023
Dec ’23US$38.59
US$46.48
+20.4%
17.0%US$68.00US$37.00US$36.2023

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 10:04
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Verizon Communications Inc. is covered by 75 analysts. 23 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew Charles BealeArete Research Services LLP
Joseph BonnerArgus Research Company
Christopher WattsAtlantic Equities LLP