Verizon (VZ): Evaluating Valuation as Profit Beats Estimates and 2025 Growth Guidance Reaffirmed

Verizon Communications (VZ) delivered third-quarter results that surprised on the profit side, even as revenue growth slowed and subscriber numbers slipped. The company reaffirmed its wireless revenue outlook for 2025, highlighting progress on efficiency and strategy.

See our latest analysis for Verizon Communications.

Verizon’s recent moves, including the expansion of its fiber footprint and commitment to customer-focused transformation, have helped reassure investors after a turbulent quarter. While the share price saw a 9% drop over the past month and remains slightly negative year-to-date, the company’s 1-year total shareholder return stands at 2.7%. Its three-year total return above 30% suggests long-term momentum could be building despite near-term challenges.

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With the stock trading at a near 20% discount to analyst targets following strong profit growth but ongoing subscriber losses, investors are left wondering: is Verizon undervalued at these levels, or is the market already factoring in its future turnaround?

Most Popular Narrative: 16% Undervalued

According to the most widely followed valuation narrative, Verizon’s estimated fair value sits notably above its last close price. This latest narrative weighs projected profit, margin expansion, and sector risks to reach a conclusion about Verizon’s market positioning.

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. This underpins sustainable future earnings growth.

Read the complete narrative.

Want the real drivers behind Verizon’s future? The numbers powering this narrative hinge on margin expansion, sales growth, and where earnings could leap next, plus a profit multiple built on more than hope. Ready to see what underpins this valuation?

Result: Fair Value of $47.53 (UNDERVALUED)

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

However, persistent subscriber churn or setbacks in monetizing new wireless and fiber ventures could quickly undermine the optimistic outlook that supports Verizon’s current valuation.

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

Build Your Own Verizon Communications Narrative

If you see things differently or want to dig into the details yourself, it’s quick and easy to build your own view using the same data. 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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