Verizon Communications Inc. (NYSE:VZ)

The financial performance indicators reveal fluctuations over the five-year period. Net income attributable to Verizon experienced a decrease from 2021 to 2023, followed by increases in both 2024 and 2025, though not fully recovering to the 2021 level. Similar patterns are observed in Earnings Before Tax (EBT) and Earnings Before Interest and Tax (EBIT), with a decline between 2021 and 2023 and subsequent recoveries in 2024 and 2025.

EBITDA Trend

EBITDA demonstrated a relatively stable performance initially, with a slight decrease from US$49,111 million in 2021 to US$48,983 million in 2022. A more significant decline was observed in 2023, falling to US$40,135 million. However, EBITDA rebounded in 2024 to US$47,520 million and continued to increase modestly in 2025, reaching US$47,715 million. This suggests potential operational challenges in 2023 that were partially addressed in subsequent years.

The relationship between EBITDA and other profitability metrics appears consistent. The decrease in EBITDA in 2023 aligns with the declines in Net Income, EBT, and EBIT during the same period. The subsequent recoveries in these metrics from 2023 to 2025 indicate a correlated improvement in overall financial health. The relatively small increase in EBITDA from 2024 to 2025, compared to the recovery from 2023, suggests a potential stabilization of earnings growth.

EBITDA vs. EBIT

The difference between EBITDA and EBIT represents depreciation and amortization expense. This difference remained relatively consistent across the period, indicating no significant changes in the company’s depreciation policies or asset base. The gap between the two figures was approximately US$17,000 million each year.

Overall, the period demonstrates a challenging year in 2023, followed by a recovery phase. While profitability metrics improved in 2024 and 2025, they did not fully return to the levels observed in 2021 and 2022. Continued monitoring of these trends will be necessary to assess the sustainability of the recovery.

The Enterprise Value to EBITDA ratio exhibited fluctuations over the five-year period. Initial values decreased, followed by an increase, and then stabilized. Enterprise Value demonstrated an initial decline, a period of relative stability, and a final increase, while EBITDA experienced a decrease followed by recovery and stabilization.

Enterprise Value (EV)

Enterprise Value decreased from US$373,185 million in 2021 to US$317,390 million in 2022, representing a decline of approximately 17.4%. It remained relatively stable at US$316,972 million in 2023 and US$311,777 million in 2024 before increasing to US$346,754 million in 2025. This suggests a period of valuation compression followed by a recent recovery.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA decreased from US$49,111 million in 2021 to US$40,135 million in 2023, a decrease of approximately 18.3%. A recovery was observed in 2024, with EBITDA reaching US$47,520 million, and this level was sustained in 2025 at US$47,715 million. This indicates a period of operational pressure followed by stabilization and improvement.

EV/EBITDA Ratio

The EV/EBITDA ratio began at 7.60 in 2021, decreased to 6.48 in 2022, and then rose to 7.90 in 2023. It subsequently decreased to 6.56 in 2024 and stabilized at 7.27 in 2025. The initial decrease in the ratio coincided with the decline in Enterprise Value and a slight decrease in EBITDA. The subsequent increase in 2023 was driven by a larger decrease in EBITDA relative to the stable Enterprise Value. The final decrease and stabilization reflect the combined effect of a slight decrease in Enterprise Value and a recovery in EBITDA.

The observed fluctuations in the EV/EBITDA ratio suggest changing market perceptions of the company’s value relative to its operating performance. The recent stabilization of both EBITDA and the ratio may indicate a period of relative stability in the company’s financial position.