Verizon Communications Inc.

BIT:1VZ Stock Report

Market Cap: €161.4b

Verizon Communications Valuation

Is 1VZ 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 1VZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€125.05
Fair Value
69.0% undervalued intrinsic discount
23
Number of Analysts

Below Fair Value: 1VZ (€38.74) is trading below our estimate of fair value (€125.05)

Significantly Below Fair Value: 1VZ is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1VZ?

Key metric: As 1VZ is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1VZ. This is calculated by dividing 1VZ's market cap by their current earnings.
What is 1VZ's PE Ratio?
PE Ratio10.5x
EarningsUS$17.78b
Market CapUS$183.58b

Price to Earnings Ratio vs Peers

How does 1VZ's PE Ratio compare to its peers?

The above table shows the PE ratio for 1VZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.5x
INW Infrastrutture Wireless Italiane
28.4x6.5%€10.0b
RWAY Rai Way
18.4x1.4%€1.7b
DTE Deutsche Telekom
13.9x0.4%€156.3b
T AT&T
17.3x8.3%US$198.0b
1VZ Verizon Communications
10.5x5.8%€183.6b

Price-To-Earnings vs Peers: 1VZ is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (19.5x).

Price to Earnings Ratio vs Industry

How does 1VZ's PE Ratio compare vs other companies in the European Telecom Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1VZ 10.5xIndustry Avg. 18.5xNo. of Companies8PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1VZ is good value based on its Price-To-Earnings Ratio (10.5x) compared to the European Telecom industry average (18.3x).

Price to Earnings Ratio vs Fair Ratio

What is 1VZ'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.

1VZ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.5x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: 1VZ is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (22x).

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 1VZ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€38.74
€42.40
+9.4%
7.1%€49.39€37.04n/a23
Apr ’26€42.01
€44.10
+5.0%
7.6%€50.98€38.93n/a23
Mar ’26€41.23
€45.73
+10.9%
8.0%€53.03€39.33n/a24
Feb ’26€38.16
€45.75
+19.9%
8.0%€53.06€39.35n/a24
Jan ’26€38.60
€45.52
+17.9%
8.3%€53.67€39.09n/a24
Dec ’25€42.14
€44.81
+6.4%
8.8%€53.00€38.61n/a23
Nov ’25€38.43
€43.71
+13.8%
8.8%€51.72€37.33n/a23
Oct ’25€40.45
€42.82
+5.9%
8.5%€49.69€36.52n/a24
Sep ’25€37.23
€42.72
+14.8%
8.7%€50.70€35.73n/a26
Aug ’25€37.83
€42.72
+12.9%
8.7%€50.70€35.73n/a26
Jul ’25€38.72
€42.82
+10.6%
8.5%€51.22€36.10n/a26
Jun ’25€37.71
€42.04
+11.5%
8.9%€50.64€35.69n/a25
May ’25€37.11
€42.70
+15.1%
8.5%€51.52€36.40€38.7226
Apr ’25€38.82
€42.37
+9.1%
7.2%€50.27€36.18€42.0126
Mar ’25€36.89
€41.86
+13.5%
9.4%€50.12€29.84€41.2326
Feb ’25€39.20
€41.66
+6.3%
9.7%€49.98€29.75€38.1626
Jan ’25€33.88
€37.38
+10.3%
11.8%€49.13€29.25€38.6023
Dec ’24€35.33
€37.14
+5.1%
12.2%€49.80€29.65€42.1423
Nov ’24€33.47
€38.45
+14.9%
16.5%€60.47€29.99€38.4323
Oct ’24€30.82
€38.09
+23.6%
16.7%€60.12€29.81€40.4523
Sep ’24€32.41
€37.90
+16.9%
15.6%€58.78€31.23€37.2323
Aug ’24€30.43
€37.39
+22.9%
15.6%€58.05€30.84€37.8323
Jul ’24€33.80
€39.80
+17.8%
14.2%€58.65€33.91€38.7223
Jun ’24€33.28
€40.29
+21.1%
15.2%€58.17€33.63€37.7123
May ’24€35.22
€40.28
+14.4%
15.1%€58.00€33.53€37.1123
AnalystConsensusTarget
Consensus Narrative from 23 Analysts
€42.17
Fair Value
8.1% undervalued intrinsic discount
23
Number of Analysts

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/06 06:29
End of Day Share Price 2025/05/06 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

Verizon Communications Inc. is covered by 73 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