Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

$24.99

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

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Free Cash Flow to The Firm (FCFF)

Verizon Communications Inc., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income attributable to Verizon
Net income attributable to noncontrolling interests
Net noncash charges
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses
Net cash provided by operating activities
Interest paid, net of amounts capitalized, net of tax1
Capitalized interest costs, net of tax2
Capital expenditures, including capitalized software
Acquisitions of wireless licenses
Right-of-use assets obtained in exchange for new finance lease liabilities
Free cash flow to the firm (FCFF)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Verizon Communications Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Verizon Communications Inc. FCFF increased from 2021 to 2022 and from 2022 to 2023.

Interest Paid, Net of Tax

Verizon Communications Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR1
Interest Paid, Net of Tax
Interest paid, net of amounts capitalized, before tax
Less: Interest paid, net of amounts capitalized, tax2
Interest paid, net of amounts capitalized, net of tax
Interest Costs Capitalized, Net of Tax
Capitalized interest costs, before tax
Less: Capitalized interest costs, tax3
Capitalized interest costs, net of tax

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 2023 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= × =

3 2023 Calculation
Capitalized interest costs, tax = Capitalized interest costs × EITR
= × =


Enterprise Value to FCFF Ratio, Current

Verizon Communications Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Valuation Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors1
AT&T Inc.
T-Mobile US Inc.
EV/FCFF, Sector
Telecommunication Services
EV/FCFF, Industry
Communication Services

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Verizon Communications Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1
Free cash flow to the firm (FCFF)2
Valuation Ratio
EV/FCFF3
Benchmarks
EV/FCFF, Competitors4
AT&T Inc.
T-Mobile US Inc.
EV/FCFF, Sector
Telecommunication Services
EV/FCFF, Industry
Communication Services

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =

4 Click competitor name to see calculations.