VZ
Verizon Communications Inc.
$45.36
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 23.8% below fair value
You pay
$45.36
Bear
$47.62
Fair
$59.53
Bull
$71.43
Bear
$47.62
+5.0%
$4.25 × 12x P/E
Fair
$59.53
+31.2%
$4.25 × 15x P/E
Bull
$71.43
+57.5%
$4.25 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
10.7x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $51.56 from 60 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $59.53 per share.
Warnings
Dividend-based valuation: $45.67 (below our primary estimate by 28%). Large gaps may signal the dividend doesn't reflect full earning power.
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