Verizon Communications Inc. logo VZ - Verizon Communications Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
1
BUY 22
HOLD 35
SELL 3
STRONG
SELL
0
| PRICE TARGET: $50.69 DETAILS
HIGH: $58.00
LOW: $46.00
MEDIAN: $49.50
CONSENSUS: $50.69
UPSIDE: 7.87%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Fair Value Moderate
Trading 20.7% below fair value
Current Price $46.99
Bear Case $47.37 0.8% upside ($47.37 - $46.99) / $46.99 = 0.8% $4.25 × 12x P/E
Fair Value $59.22 26.0% upside ($59.22 - $46.99) / $46.99 = 26.0% $4.25 × 15x P/E
Bull Case $71.07 51.2% upside ($71.07 - $46.99) / $46.99 = 51.2% $4.25 × 18x P/E

Adjust Assumptions

15.0x
4.25$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 11.0x

Plain-Language 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 $50.69 from 61 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $59.22 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.
Wall Street's average price target is $50.69 (from 61 analysts). Our estimate is 26% 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