Verizon Wins FCC Approval for $20 Billion Frontier Merger: What This Means for Fiber
With FCC approval, the competing fiber internet service providers can become one.
Fiscal Year: January - December
Verizon Communications Inc. (VZ), listed on the NYSE, has a market capitalization of $171.96B. As of May 20, 2025, the stock is trading at $44.31 per share, offering investors a clear view of its current market value. Verizon Communications Inc. is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 10.55, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. Verizon Communications Inc. also offers a dividend yield of 6.12%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that Verizon Communications Inc. (VZ) may be undervalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for Verizon Communications Inc. is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for Verizon Communications Inc., Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for Verizon Communications Inc. is 9, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, Verizon Communications Inc. (VZ) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether Verizon Communications Inc. (VZ) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be undervalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of Verizon Communications Inc. (VZ) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of Verizon Communications Inc.. To access the full SS Score, consider upgrading your subscription.
Verizon Communications Inc. is a significant player in the industry sector, with a market capitalization of $171.96B and a competitive P/E ratio of 10.55. Investors should compare these metrics with industry peers to gauge whether Verizon Communications Inc. is outperforming or underperforming within its sector.
With FCC approval, the competing fiber internet service providers can become one.
CNBC's Julia Boosrtin reports on news of a merger in the telecommunications sector.
FCC Chairman Brendan Carr approved the telecom merger after Verizon yielded to new demands to curb diversity policies.
Verizon announced Friday that it's ending corporate diversity, equity and inclusion (DEI) goals as it faces a Trump administration probe and scrutiny of a proposed acquisition.
FCC Chair Brendan Carr in February criticized Verizon for its promotion of DEI programs and said it could be a factor in the Frontier deal.
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Verizon Communications is a compelling investment with a high dividend yield and capital appreciation opportunities, making it attractive for income and growth investors. VZ is in a bullish uptrend, t...
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Earnings season offers opportunities to buy undervalued blue-chip stocks like Verizon and Bristol Myers Squibb, both yielding 5-7% and trading below historical PE ratios. Verizon's growth in 5G, broad...
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
Year | FCF Estimate | % | # Analysts |
---|---|---|---|
2025 | 17.82B | Analyst x14 | |
2026 | 18.72B | 5.05% | Analyst x13 |
2027 | 19.80B | 5.73% | Analyst x8 |
2028 | 21.09B | 6.52% | Analyst x3 |
2029 | 22.28B | 5.67% | Analyst x2 |
2030 | 23.01B | 3.29% | Est @3.3% |
2031 | 23.69B | 2.92% | Est @2.9% |
2032 | 24.32B | 2.66% | Est @2.7% |
2033 | 24.88B | 2.32% | Est @2.3% |
2034 | 25.43B | 2.20% | Est @2.2% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
Year | FCF | Discount Factor | PV of Future FCF |
---|---|---|---|
2023A | 18.71B | 1.00 | 18.71B |
2024A | 19.82B | 1.00 | 19.82B |
2025E | 17.82B | 1.07 | 16.61B |
2026E | 18.72B | 1.15 | 16.25B |
2027E | 19.80B | 1.24 | 16.01B |
2028E | 21.09B | 1.33 | 15.89B |
2029E | 22.28B | 1.42 | 15.64B |
2030E | 23.01B | 1.53 | 15.05B |
2031E | 23.69B | 1.64 | 14.43B |
2032E | 24.32B | 1.76 | 13.80B |
2033E | 24.88B | 1.89 | 13.15B |
2034E | 25.43B | 2.03 | 12.52B |
Terminal | 538.65B | 2.03 | 265.31B |
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