VZ
Verizon Communications Inc.
$47.83
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 21.5% below fair value
You pay
$47.83
Bear
$48.72
Fair
$60.90
Bull
$73.08
Bear
$48.72
+1.9%
$4.06 × 12x P/E
Fair
$60.90
+27.3%
$4.06 × 15x P/E
Bull
$73.08
+52.8%
$4.06 × 18x P/E
Adjust Assumptions
15.0x
4.06$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
11.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (61 analysts)
$48.58
Divergence from AlphaVal
25%
Summary
Applying a 15x P/E to adjusted EPS of $4.06, the base-case value is $60.90 per share. DDM cross-check: $46.18.
Warnings
Dividend-based valuation: $46.18 (below our primary estimate by 24%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $48.58 (from 61 analysts). Our estimate is 25% above the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples