Verizon Communications Inc. (VZ) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Communication Services · Telecom Services
Is Verizon Communications Inc. a safe investment right now?
Verizon Communications Inc.'s Altman Z-Score of 1.28 places it in the distress zone. Our fair value estimate is $42.24 (Fairly Valued). Moat rating: 3.3/5 stars.
Could Verizon Communications Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 1.28 falls below the 1.8 distress threshold, indicating significant financial stress.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives VZ's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.0135 | 1.2 | -0.02 |
| B · Retained Earnings / Total Assets | RE / TA | 0.2344 | 1.4 | 0.33 |
| C · EBIT / Total Assets | EBIT / TA | 0.0726 | 3.3 | 0.24 |
| D · Market Cap / Total Liabilities | MCap / TL | 0.6496 | 0.6 | 0.39 |
| E · Revenue / Total Assets | Rev / TA | 0.3418 | 1.0 | 0.34 |
How has VZ's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 1.31 | Distress |
| 2023 | 1.21 | Distress |
| 2024 | 1.26 | Distress |
| 2025 | 1.28 | Distress |
Source: Calculated from VZ's latest 10-K filing on SEC EDGAR.
What is Verizon Communications Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $4.40 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $4.06 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $4.91 | 22 analysts consensus |
| Trailing P/E | 11.3x | Current market pricing |
| Fair P/E (β discount) | 9.6x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Growing | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $51.58 (22 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Verizon Communications Inc. have a durable competitive advantage?
Moat rating: 3.3/5.
What makes up VZ's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 3/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is VZ's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 13.2% | — |
| 2023 | 9.3% | Declining |
| 2024 | 12.2% | Rising |
| 2025 | 11.2% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is Verizon Communications Inc.'s dividend safe?
Can Verizon Communications Inc. afford its dividend?
Payout ratio is 50.4%. FCF covers the dividend 1.0x. 43 consecutive years of payments.
Verizon Communications Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $138.2B | $134.8B | $136.8B | Stable |
| Net Income | $17.2B | $17.5B | $21.3B | Declining |
| Free Cash Flow | $19.7B | $18.9B | $10.4B | Rising |
| Gross Margin | 58.9% | 59.9% | 56.8% | Stable |
Recent events that affect our VZ analysis
VZ earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.21. Revenue estimate: $34.86B. Our current Fair Value: $42.24 — a significant beat or miss could shift this estimate.
VZ analyst consensus: 44% bullish (11 of 25 analysts)
3 Strong Buy, 8 Buy, 14 Hold, 0 Sell, 0 Strong Sell. Consensus target: $51.58 (12.2% upside). Compare with our independent Fair Value: $42.24.
VZ paid $0.7080/share dividend
Dividend Safety Grade: B. Payout ratio: 50.4%.
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ beat EPS estimates by 3.3%
Reported EPS: $1.09 vs estimate $1.06. Earnings strength supports our Fair Value of $42.24 (8.1% below current price).
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ paid $0.6900/share dividend
Dividend Safety Grade: B. Payout ratio: 50.4%.
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ beat EPS estimates by 1.5%
Reported EPS: $1.21 vs estimate $1.19. Earnings strength supports our Fair Value of $42.24 (8.1% below current price).
VZ filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ paid $0.6900/share dividend
Dividend Safety Grade: B. Payout ratio: 50.4%.
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
VZ beat EPS estimates by 2.6%
Reported EPS: $1.22 vs estimate $1.19. Earnings strength supports our Fair Value of $42.24 (8.1% below current price).
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ paid $0.6780/share dividend
Dividend Safety Grade: B. Payout ratio: 50.4%.
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
VZ beat EPS estimates by 3.7%
Reported EPS: $1.19 vs estimate $1.15. Earnings strength supports our Fair Value of $42.24 (8.1% below current price).
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ paid $0.6780/share dividend
Dividend Safety Grade: B. Payout ratio: 50.4%.
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ beat EPS estimates by 0.3%
Reported EPS: $1.10 vs estimate $1.10. Earnings strength supports our Fair Value of $42.24 (8.1% below current price).
VZ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
VZ paid $0.6780/share dividend
Dividend Safety Grade: B. Payout ratio: 50.4%.
Common questions about Verizon Communications Inc.
What is Verizon Communications Inc. stock price today?
Verizon Communications Inc. (VZ) stock price is $45.98 as of the latest market close, traded on the NYSE exchange.
What does Verizon Communications Inc. do?
Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and streaming products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements; and fixed wireless access (FWA) broadband through its wireless networks, as well as related equipment and devices, such as smartphones, tablets, smartwatches, and other wireless-enabled connected devices.
What is Verizon Communications Inc. market cap?
Verizon Communications Inc. has a market capitalization of $193.93B, classifying it as a large-cap stock in the Communication Services sector.
What sector and industry is VZ in?
Verizon Communications Inc. operates in the Communication Services sector, specifically within the Telecom Services industry. It trades on the NYSE under the ticker symbol VZ.
Is VZ stock overvalued or undervalued?
Based on our valuation model, Verizon Communications Inc. trades 8.8% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $42.24
- Current Price: $45.98
- Valuation Zone: Fairly Valued
What is VZ stock forecast and analyst target price?
Based on 22 Wall Street analysts, the consensus price target for Verizon Communications Inc. is $51.58, implying upside of 12.2% from the current price.
- Analyst High Target: $71.00
- Analyst Low Target: $44.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Verizon Communications Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Verizon Communications Inc.:
- Revenue growth (current year est.): 4.4%
- EPS growth (current year est.): 4.3%
- Revenue growth (next year est.): 1.3%
- EPS growth (next year est.): 7.0%
What are Verizon Communications Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $138.2B | Stable |
| Net Income | $17.2B | Declining |
| Free Cash Flow | $19.7B | Rising |
| Gross Margin | 58.9% | Stable |
What is VZ's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 11.3x
- Forward P/E (next 12 months est.): 8.8x
- FairValueLabs Fair P/E: 9.6x
How volatile is VZ stock?
Verizon Communications Inc. has a beta of 0.27, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Verizon Communications Inc. have?
Verizon Communications Inc.'s balance sheet shows:
- Total Cash: $19.05B
- Total Debt: $184.81B
- Net Cash Position: $-165.77B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Verizon Communications Inc.'s free cash flow?
Verizon Communications Inc. generated $17.24B in trailing twelve-month free cash flow (from $37.14B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Verizon Communications Inc. pay a dividend, and is it safe?
Yes, Verizon Communications Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 5.9%
- Payout Ratio: 50.4%
- Consecutive Years Paid: 43
- 5-Year Dividend Growth: -11.1%
- FairValueLabs Safety Grade: B
Is Verizon Communications Inc. at risk of going bankrupt?
Verizon Communications Inc.'s Altman Z-Score is 1.28, placing it in the distress zone (below 1.8) — elevated bankruptcy risk. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Verizon Communications Inc. have a durable competitive advantage?
Verizon Communications Inc. scores 3.3/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 3/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is VZ's return on equity (ROE)?
Verizon Communications Inc.'s return on equity is 17.1%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy VZ stock?
VZ shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol VZ
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is VZ a value stock or speculative?
FairValueLabs classifies Verizon Communications Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Verizon Communications Inc.?
The current CEO of Verizon Communications Inc. is Mr. Daniel H. Schulman.
What is VZ's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $4.06
- Forward EPS (next 12 months est.): $5.25
- Analyst consensus EPS (this year): $4.91
- Analyst consensus EPS (next year): $5.25
Other Communication Services companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
VZ analysis methodology: How we calculate fair value, Z-Scores, and moat ratings