Verizon Communications Inc., FCFE 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)
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)
Proceeds from long-term borrowings	2,018)	7,074)	33,034)	25,822)	10,079)
Proceeds from asset-backed long-term borrowings	6,594)	10,732)	8,383)	5,635)	8,576)
Net proceeds from (repayments of) short-term commercial paper	(150)	106)	—)	(9)	—)
Repayments of long-term borrowings and finance lease obligations	(6,181)	(8,616)	(14,063)	(9,775)	(17,584)
Repayments of asset-backed long-term borrowings	(4,443)	(4,948)	(4,800)	(7,413)	(6,302)
Net debt related costs	(73)	(366)	(2,309)	(1,055)	(1,797)
Free cash flow to equity (FCFE)	10,677)	14,383)	(8,098)	34,655)	9,881)

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
FCFE	Free cash flow to equity is the cash flow available to Verizon Communications Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Verizon Communications Inc. FCFE increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Verizon Communications Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	4,209,626,270
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	10,677)
FCFE per share	2.54
Current share price (P)	41.93
Valuation Ratio
P/FCFE	16.53
Benchmarks
P/FCFE, Competitors¹
AT&T Inc.	8.36
T-Mobile US Inc.	27.29
P/FCFE, Sector
Telecommunication Services	15.22
P/FCFE, Industry
Communication Services	26.87

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

¹ Click competitor name to see calculations.

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

Verizon Communications Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
No. shares of common stock outstanding¹	4,204,272,443	4,199,882,937	4,197,823,662	4,138,148,588	4,135,863,778
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	10,677)	14,383)	(8,098)	34,655)	9,881)
FCFE per share³	2.54	3.42	-1.93	8.37	2.39
Share price^1, 4	39.72	40.01	53.32	56.50	58.20
Valuation Ratio
P/FCFE⁵	15.64	11.68	—	6.75	24.36
Benchmarks
P/FCFE, Competitors⁶
AT&T Inc.	6.16	—	3.57	10.51	18.09
T-Mobile US Inc.	19.36	—	—	15.91	—
P/FCFE, Sector
Telecommunication Services	11.95	—	16.08	9.24	26.21
P/FCFE, Industry
Communication Services	21.97	31.82	26.52	20.51	33.69

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 Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 10,677,000,000 ÷ 4,204,272,443 = 2.54

⁴ Closing price as at the filing date of Verizon Communications Inc. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 39.72 ÷ 2.54 = 15.64

⁶ Click competitor name to see calculations.

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Verizon Communications Inc. (NYSE:VZ)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical