Verizon (VZ): Evaluating Valuation After Recent Share Price Pullback

Verizon Communications (VZ) shares have seen some movement recently, catching the attention of both individual and institutional investors. As the telecom landscape shifts, many are watching to see how Verizon adapts in the coming months.

See our latest analysis for Verizon Communications.

Verizon’s share price has given up some ground lately, reflecting a cautious mood after a modest year-to-date advance. The latest 30-day share price return sits at -6.3%. Looking further back shows a 1.6% total shareholder return over the past year and a sizeable 37% gain when measured over three years. This suggests that despite short-term volatility, long-term holders have benefited from steady performance as the company navigates industry shifts.

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With shares pulling back but long-term performance holding up, investors may wonder if Verizon is undervalued at today’s levels or if the market has already factored in all of the company’s future growth prospects, leaving little room for upside.

Most Popular Narrative: 16% Undervalued

Based on the most widely followed narrative, Verizon Communications is currently trading well below the calculated fair value. The last close at $40.83 offers a compelling discount compared to the consensus fair value of $48.61. This price gap has raised the stakes in the debate over whether Verizon’s near-term challenges overshadow its longer-term upside and strategic pivots.

The rapid expansion of fixed wireless access (FWA) and fiber broadband, as evidenced by accelerating subscriber growth (5M+ FWA subscribers, robust broadband net adds, and the pending Frontier acquisition), positions Verizon to capitalize on surging demand for high-quality home and business connectivity as more devices, smart homes, and bandwidth-intensive applications proliferate. This supports future service revenue and ARPU growth.

Read the complete narrative.

Want to discover the key upgrade fueling Verizon’s valuation leap? The catalysts here aren’t what you’d expect, and the growth assumptions could surprise even seasoned investors. Crack open the full narrative to see the bold forecasts that have set this discount in motion.

Result: Fair Value of $48.61 (UNDERVALUED)

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

However, if postpaid phone churn remains high or heavy 5G and fiber investment fails to deliver, Verizon’s projected upside could quickly unravel.

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

Build Your Own Verizon Communications Narrative

If you see the story differently or want to draw your own conclusions from the numbers, you can easily shape a personal view in under three minutes. Do it your way.

A great starting point for your Verizon Communications research is our analysis highlighting 5 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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