Verizon Communications Inc. (VZ) Fair Value & PE Analysis
Telecommunications Services · NYSE
Current Price
$43.18
PE Ratio (TTM)
11.2x
Intrinsic Value
$53.07
+18.6% margin of safety
What Is Verizon Communications Inc.'s Fair Value?
As of 2026-10-28, applying a 11.1x earnings multiple to Verizon Communications Inc.'s (VZ) earnings per share of $3.89 yields a fair value estimate of $53.07 per share, versus a market price of $43.18.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $40.12 to $68.15. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · VZ intrinsic value (DCF view)
Is Verizon Communications Inc. (VZ) Overvalued?
At $43.18, VZ trades about 18.6% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Extensive Fiber Optic Network
Verizon possesses a vast and deeply entrenched fiber optic network. This infrastructure represents a significant capital investment and a substantial barrier to entry for competitors.
↑Brand Recognition and Customer Loyalty
Verizon benefits from strong brand recognition and a loyal customer base built over years of service. This loyalty translates into sticky customer relationships and reduced churn.
↑Scale and Spectrum Holdings
The company's immense scale allows for cost efficiencies, while its significant holdings of valuable wireless spectrum provide a critical resource for network capacity and future growth.
INVESTMENT RISKS
↓Regulatory Environment and Fines
Verizon operates in a heavily regulated industry. Changes in regulations or potential fines for non-compliance can significantly impact profitability and operational flexibility.
↓Debt Load and Interest Rate Sensitivity
The company carries a substantial amount of debt. Rising interest rates increase borrowing costs, potentially straining cash flow and limiting investment capacity.
↓Dependence on Wireless Segment
A significant portion of Verizon's revenue and profits are derived from its wireless business. Any disruption or significant decline in this segment could have a material adverse effect on the company.
Base case
VZ base case PE valuation
Intrinsic Value
$53.07
Margin of safety
+18.6%
Expected annual return
+4.2%
Base case assumptions: 5.9% annual earnings growth, 11.1x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the VZ PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Verizon Communications Inc. respond.
Open PE Calculator for VZCompany Overview
Verizon Communications Inc. operates as a prominent global provider of diverse communication, technology, information, and entertainment solutions, catering to individuals, enterprises, and government entities worldwide through its various divisions. Its Consumer segment focuses on individual customers, supplying a broad spectrum of mobile service options, including both subscription-based (postpaid) and pay-as-you-go (prepaid) plans. This segment also facilitates internet access for portable devices such as laptop computers and tablets, and offers a variety of wireless hardware, ranging from smartphones and traditional mobile handsets to advanced wireless-enabled gadgets like tablets and smartwatches. Additionally, it delivers essential residential fixed connectivity services, which encompass internet, television, and voice communication. Verizon also extends its network capabilities by providing access to mobile virtual network operators. The company's Business segment is dedicated to providing enterprise-level solutions. It offers comprehensive network connectivity products, including private networking, private cloud integration, virtual and software-defined networking, and high-speed internet access services. This segment further delivers sophisticated internet protocol-based voice and video communication tools, unified communications and collaboration platforms, and specialized customer contact center solutions. Beyond core connectivity, it provides a suite of managed services and data security offerings. Its extensive portfolio also covers domestic and international voice and data services, such as calling, messaging, conferencing, advanced contact center functionalities, and dedicated private line and data access networks. Moreover, the Business segment furnishes customer premises equipment, along with essential installation, maintenance, and on-site support services, and a wide array of Internet of Things (IoT) products and services. Verizon Communications Inc. was incorporated in 1983 and holds its corporate headquarters in New York, New York. The company, which was originally known as Bell Atlantic Corporation, officially adopted its current name in June 2000.
Financial Metrics — VZ PE Stock Valuation Data
PE Ratio (TTM)
11.2x
PEG Ratio
n/m
Earnings Yield
9.02%
ROE (TTM)
15.7%
Revenue/Share (TTM)
$33.53
Dividend Yield
6.40%
Debt/Equity
1.78x
Frequently Asked Questions
What is the PE ratio of VZ?
The trailing twelve-month PE ratio of VZ reflects how much investors pay per dollar of Verizon Communications Inc.'s earnings. This metric is most useful when compared to Telecommunications Services peers and the company's own historical range.
Is VZ overvalued based on PE ratio?
VZ's PE of 11.2x combined with a PEG ratio of -0.68 provides a growth-adjusted perspective. VZ has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Telecommunications Services, a DCF analysis may be more appropriate.
How do I value VZ stock using PE ratio?
To value Verizon Communications Inc. using PE: (1) Compare the current PE (11.2x) against the Telecommunications Services median to assess relative pricing, (2) check the PEG ratio (-0.68) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of VZ?
VZ's PEG ratio is -0.68, calculated by dividing the PE ratio (11.2x) by the expected earnings growth rate. Because VZ has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for VZ stock valuation?
PE ratio gives a quick relative read — how VZ is priced versus Telecommunications Services peers. DCF provides an absolute value based on projected free cash flows. For VZ, with a strong ROE of 15.7%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See VZ DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Communication Services valuationsP/E and DCF value VZ with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.