Market Pulse50Neutral

Verizon Communications Inc.Opportunity Rank #170(VZ) Intrinsic Value & DCF Analysis (2026)

Current Price

$50.58

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$50.58
Price
$170.74
Intrinsic Value
Undervalued by 238%MOS: $136.59

Fundamental Score

46/100
Bearish

Weighted across 6 signals

Narrative Score

80/100
Strong

-1 vs previous

The intrinsic value of Verizon Communications Inc. (VZ) is estimated at $170.74 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $50.58, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 1.23% long-term growth rate and an 8.00% discount rate (calculated: 5.87%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Verizon Communications Inc. (VZ) is estimated at $170.74 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $50.58, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 1.23% long-term growth rate and an 8.00% discount rate (calculated: 5.87%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$170.74
237.56% upside
20% margin of safety: $136.59
Years: 10Growth Rate: 1.23%
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Capital Efficiency

Average Quarterly ROIC
2.31%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

46/100
BearishWeighted across 6 signals
DCF Discount
237.6% discount to price
100
FCF Yield
25.5% trailing FCF yield
100
ROIC vs WACC
ROIC 2.3% vs WACC 11.0% (0.2x)
11
Net Debt / FCF
3.0x net debt to FCF
0
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
-1.3% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

80/100
Strong
-1 vs previous · +2 new driversVs 6-Month Baseline:Average (47th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 100%Updated: 48m ago
Sources: 212 (200 News · 12 Analyst)
Drivers(last 30 days)
140 news sentiment+1.9
53 regulatory scrutiny+1.7
4 upgrade headlines+0.8
Analyst upgrades+0.1
2 margin pressure+0.0
Promotions/discounting+0.0

Investment Coach

Updated 13h ago
BUYConfidence: 55%
Thesis
Verizon Communications Inc. is significantly undervalued with an estimated fair value 241.7% above its current price, supported by a strong narrative score and healthy free cash flow yield of 25.5%. Despite trailing returns relative to its cost of capital, the company's buybacks and stable narrative trend provide a positive outlook for potential upside.
Key Risk
The key risk is the company's return on invested capital (ROIC) remaining substantially below its weighted average cost of capital (WACC), which could limit value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 1.23%5 Year CAGR (Adjusted): -0.95%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$54,488$54,148$54,902$56,242$63,881$59,825$62,086$54,583$52,426$42,148$39,282$56,802$48,176$56,002$51,596$46,024$49,821$48,437$44,690$44,377$41,207

How Intrinziq Estimates Fair Value

Intrinziq estimates Verizon Communications Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Verizon Communications Inc.Communication Services

Verizon Communications Inc., through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Its Consumer segment provides postpaid and prepaid service plans; internet access on notebook computers and tablets; wireless equipment, including smartphones and other handsets; and wireless-enabled internet devices, such as tablets, and other wireless-enabled connected devices comprising smart watches. It also provides residential fixed connectivity solutions, such as internet, video, and voice services; and sells network access to mobile virtual network operators. As of December 31, 2021, it had approximately 115 million wireless retail connections, 7 million wireline broadband connections, and 4 million Fios video connections. The company's Business segment provides network connectivity products, including private networking, private cloud connectivity, virtual and software defined networking, and internet access services; and internet protocol-based voice and video services, unified communications and collaboration tools, and customer contact center solutions. This segment also offers a suite of management and data security services; domestic and global voice and data solutions, such as voice calling, messaging services, conferencing, contact center solutions, and private line and data access networks; customer premises equipment; installation, maintenance, and site services; and Internet of Things products and services. As of December 31, 2021, it had approximately 27 million wireless retail postpaid connections and 477 thousand wireline broadband connections. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.