Verizon (VZ): Assessing Valuation as Shares Grind Higher Despite Recent Three-Month Soft Patch

Verizon Communications (VZ) has been quietly grinding higher, with shares up about 2% over the past week even as the past 3 months remain slightly negative. That mix sets up an interesting value discussion.

See our latest analysis for Verizon Communications.

Zooming out, Verizon’s 1 year total shareholder return of 8.58% and 3 year total shareholder return above 30% suggest improving sentiment, even though the current share price of $40.88 still reflects modest expectations.

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With steady but unspectacular growth, a solid dividend, and shares trading at a discount to analyst targets, is Verizon a quietly mispriced cash generator, or has the market already baked in the next leg of growth?

Most Popular Narrative: 13.9% Undervalued

With Verizon Communications last closing at $40.88 against a narrative fair value just under $47.50, the gap reflects measured optimism built on gradual improvement rather than a dramatic reset.

Ongoing cost optimization driven by successful voluntary separation programs, copper network decommissioning, AI powered process efficiencies, and operational streamlining continues to improve operating leverage and expand EBITDA and free cash flow, underpinning sustainable future earnings growth.

The scalable C band 5G rollout (tracking ahead of schedule and targeting 80 to 90% coverage) strengthens Verizon's competitive advantage in network quality and capacity, enabling premium offerings to meet increasing video, data, and streaming usage and supporting pricing power that could drive higher ARPU and improved margins.

Read the complete narrative.

Want to see the math behind this call? The narrative leans on slow burning revenue gains, firmer margins, and a future earnings multiple that might surprise you.

Result: Fair Value of $47.48 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, elevated 5G and fiber capex, along with high debt, leave little room for execution missteps, and stalled subscriber growth could quickly upend this valuation case.

Find out about the key risks to this Verizon Communications narrative.

Build Your Own Verizon Communications Narrative

If you see the story differently or would rather dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.

A great starting point for your Verizon Communications research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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