Verizon Communications Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income attributable to Verizon	17,506)	11,614)	21,256)	22,065)	17,801)
Net income attributable to noncontrolling interests	443)	481)	492)	553)	547)
Net noncash charges	21,241)	25,647)	15,849)	17,811)	23,364)
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses	(2,278)	(267)	(456)	(890)	56)
Net cash provided by operating activities	36,912)	37,475)	37,141)	39,539)	41,768)
Interest paid, net of amounts capitalized, net of tax¹	4,299)	3,121)	2,550)	2,642)	3,386)
Capitalized interest costs, net of tax²	752)	1,294)	1,561)	1,416)	425)
Capital expenditures, including capitalized software	(17,090)	(18,767)	(23,087)	(20,286)	(18,192)
Acquisitions of wireless licenses	(900)	(5,796)	(3,653)	(47,596)	(2,126)
Right-of-use assets obtained in exchange for new finance lease liabilities	(1,051)	(968)	(832)	(461)	(562)
Free cash flow to the firm (FCFF)	22,923)	16,360)	13,680)	(24,747)	24,699)

Based on: 10-K (reporting date: 2024-12-31), 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).

^{1, 2} See details »

Download chart

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 2022 to 2023 and from 2023 to 2024.

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

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR¹	21.90%	28.80%	23.10%	23.10%	23.40%
Interest Paid, Net of Tax
Interest paid, net of amounts capitalized, before tax	5,505)	4,384)	3,316)	3,435)	4,420)
Less: Interest paid, net of amounts capitalized, tax²	1,206)	1,263)	766)	793)	1,034)
Interest paid, net of amounts capitalized, net of tax	4,299)	3,121)	2,550)	2,642)	3,386)
Interest Costs Capitalized, Net of Tax
Capitalized interest costs, before tax	963)	1,818)	2,030)	1,841)	555)
Less: Capitalized interest costs, tax³	211)	524)	469)	425)	130)
Capitalized interest costs, net of tax	752)	1,294)	1,561)	1,416)	425)

Based on: 10-K (reporting date: 2024-12-31), 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).

¹ See details »

² 2024 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 5,505 × 21.90% = 1,206

³ 2024 Calculation
Capitalized interest costs, tax = Capitalized interest costs × EITR
= 963 × 21.90% = 211

Download chart

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	320,028)
Free cash flow to the firm (FCFF)	22,923)
Valuation Ratio
EV/FCFF	13.96
Benchmarks
EV/FCFF, Competitors¹
AT&T Inc.	13.40
T-Mobile US Inc.	32.53
EV/FCFF, Sector
Telecommunication Services	19.72
EV/FCFF, Industry
Communication Services	29.59

Based on: 10-K (reporting date: 2024-12-31).

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.

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

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	311,777)	316,972)	317,390)	373,185)	342,126)
Free cash flow to the firm (FCFF)²	22,923)	16,360)	13,680)	(24,747)	24,699)
Valuation Ratio
EV/FCFF³	13.60	19.38	23.20	—	13.85
Benchmarks
EV/FCFF, Competitors⁴
AT&T Inc.	13.17	9.83	11.93	10.67	10.84
T-Mobile US Inc.	29.35	28.48	218.70	—	—
EV/FCFF, Sector
Telecommunication Services	—	16.10	24.13	567.15	16.80
EV/FCFF, Industry
Communication Services	—	22.38	23.41	31.50	25.72

Based on: 10-K (reporting date: 2024-12-31), 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).

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 311,777 ÷ 22,923 = 13.60

⁴ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Verizon Communications Inc. EV/FCFF ratio decreased from 2022 to 2023 and from 2023 to 2024.

Verizon Communications Inc. (NYSE:VZ)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical