Verizon Communications Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to Verizon	11,614)	21,256)	22,065)	17,801)	19,265)
Net income attributable to noncontrolling interests	481)	492)	553)	547)	523)
Net noncash charges	25,647)	15,849)	17,811)	23,364)	22,671)
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses	(267)	(456)	(890)	56)	(6,713)
Net cash provided by operating activities	37,475)	37,141)	39,539)	41,768)	35,746)
Interest paid, net of amounts capitalized, net of tax¹	3,121)	2,550)	2,642)	3,386)	4,101)
Capitalized interest costs, net of tax²	1,294)	1,561)	1,416)	425)	571)
Capital expenditures, including capitalized software	(18,767)	(23,087)	(20,286)	(18,192)	(17,939)
Acquisitions of wireless licenses	(5,796)	(3,653)	(47,596)	(2,126)	(898)
Right-of-use assets obtained in exchange for new finance lease liabilities	(968)	(832)	(461)	(562)	(564)
Free cash flow to the firm (FCFF)	16,360)	13,680)	(24,747)	24,699)	21,017)

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).

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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.

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

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	28.80%	23.10%	23.10%	23.40%	13.00%
Interest Paid, Net of Tax
Interest paid, net of amounts capitalized, before tax	4,384)	3,316)	3,435)	4,420)	4,714)
Less: Interest paid, net of amounts capitalized, tax²	1,263)	766)	793)	1,034)	613)
Interest paid, net of amounts capitalized, net of tax	3,121)	2,550)	2,642)	3,386)	4,101)
Interest Costs Capitalized, Net of Tax
Capitalized interest costs, before tax	1,818)	2,030)	1,841)	555)	656)
Less: Capitalized interest costs, tax³	524)	469)	425)	130)	85)
Capitalized interest costs, net of tax	1,294)	1,561)	1,416)	425)	571)

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
= 4,384 × 28.80% = 1,263

³ 2023 Calculation
Capitalized interest costs, tax = Capitalized interest costs × EITR
= 1,818 × 28.80% = 524

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	326,488)
Free cash flow to the firm (FCFF)	16,360)
Valuation Ratio
EV/FCFF	19.96
Benchmarks
EV/FCFF, Competitors¹
AT&T Inc.	11.42
T-Mobile US Inc.	36.95
EV/FCFF, Sector
Telecommunication Services	18.59
EV/FCFF, Industry
Communication Services	26.89

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.

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

	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	316,972)	317,390)	373,185)	342,126)	351,042)
Free cash flow to the firm (FCFF)²	16,360)	13,680)	(24,747)	24,699)	21,017)
Valuation Ratio
EV/FCFF³	19.38	23.20	—	13.85	16.70
Benchmarks
EV/FCFF, Competitors⁴
AT&T Inc.	9.83	11.93	10.67	10.84	12.30
T-Mobile US Inc.	28.48	218.70	—	—	—
EV/FCFF, Sector
Telecommunication Services	16.10	24.13	567.15	16.80	15.66
EV/FCFF, Industry
Communication Services	22.31	23.31	31.50	25.72	24.63

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
= 316,972 ÷ 16,360 = 19.38

⁴ Click competitor name to see calculations.

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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