Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Common Stock Valuation Ratios (Price Multiples)

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Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Current Valuation Ratios

Verizon Communications Inc., current price multiples

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Verizon Communications Inc. AT&T Inc. T-Mobile US Inc. Telecommunication Services Communication Services
Selected Financial Data
Current share price (P) $41.93
No. shares of common stock outstanding 4,209,626,270
Growth rate (g) 10.17%
 
Earnings per share (EPS) $2.76
Next year expected EPS $3.04
Operating profit per share $5.43
Sales per share $31.83
Book value per share (BVPS) $21.96
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 15.20 11.49 32.54 17.88 29.17
Price to next year expected earnings 13.80 11.39 30.36 17.77 25.98
Price-earnings-growth (PEG) 1.49 12.56 4.53 28.48 2.38
Price to operating profit (P/OP) 7.72 6.95 18.97 10.07 21.86
Price to sales (P/S) 1.32 1.33 3.44 1.82 4.86
Price to book value (P/BV) 1.91 1.58 4.18 2.34 5.52

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Verizon Communications Inc., historical price multiples

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 14.38 7.91 10.14 13.13 12.49
Price to operating profit (P/OP) 7.30 5.52 6.90 8.12 7.92
Price to sales (P/S) 1.25 1.23 1.68 1.82 1.83
Price to book value (P/BV) 1.81 1.84 2.74 3.45 3.92

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Verizon Communications Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Verizon Communications Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Verizon Communications Inc. P/S ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Verizon Communications Inc. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

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

Microsoft Excel
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$)
Net income attributable to Verizon (in millions) 11,614 21,256 22,065 17,801 19,265
Earnings per share (EPS)2 2.76 5.06 5.26 4.30 4.66
Share price1, 3 39.72 40.01 53.32 56.50 58.20
Valuation Ratio
P/E ratio4 14.38 7.91 10.14 13.13 12.49
Benchmarks
P/E Ratio, Competitors5
AT&T Inc. 8.47 8.60 19.92
T-Mobile US Inc. 23.09 69.44 51.43 48.36 20.45
P/E Ratio, Sector
Telecommunication Services 14.04 32.09 12.24 37.83 16.07
P/E Ratio, Industry
Communication Services 23.85 25.39 21.07 36.50 24.23

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 2023 Calculation
EPS = Net income attributable to Verizon ÷ No. shares of common stock outstanding
= 11,614,000,000 ÷ 4,204,272,443 = 2.76

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

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 39.72 ÷ 2.76 = 14.38

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Verizon Communications Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel
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$)
Operating income (in millions) 22,877 30,467 32,448 28,798 30,378
Operating profit per share2 5.44 7.25 7.73 6.96 7.35
Share price1, 3 39.72 40.01 53.32 56.50 58.20
Valuation Ratio
P/OP ratio4 7.30 5.52 6.90 8.12 7.92
Benchmarks
P/OP Ratio, Competitors5
AT&T Inc. 5.12 7.32 31.88 9.91
T-Mobile US Inc. 13.46 27.49 22.56 22.33 12.40
P/OP Ratio, Sector
Telecommunication Services 7.91 14.96 8.78 14.01 9.19
P/OP Ratio, Industry
Communication Services 17.87 17.40 17.55 25.62 17.85

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 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 22,877,000,000 ÷ 4,204,272,443 = 5.44

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

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 39.72 ÷ 5.44 = 7.30

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Verizon Communications Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Sales (P/S)

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

Microsoft Excel
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$)
Operating revenues (in millions) 133,974 136,835 133,613 128,292 131,868
Sales per share2 31.87 32.58 31.83 31.00 31.88
Share price1, 3 39.72 40.01 53.32 56.50 58.20
Valuation Ratio
P/S ratio4 1.25 1.23 1.68 1.82 1.83
Benchmarks
P/S Ratio, Competitors5
AT&T Inc. 0.98 1.14 1.01 1.19 1.53
T-Mobile US Inc. 2.44 2.26 1.94 2.17 1.58
P/S Ratio, Sector
Telecommunication Services 1.43 1.44 1.44 1.59 1.64
P/S Ratio, Industry
Communication Services 3.97 2.91 3.94 4.19 3.54

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 2023 Calculation
Sales per share = Operating revenues ÷ No. shares of common stock outstanding
= 133,974,000,000 ÷ 4,204,272,443 = 31.87

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

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 39.72 ÷ 31.87 = 1.25

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Verizon Communications Inc. P/S ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to Book Value (P/BV)

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

Microsoft Excel
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$)
Equity attributable to Verizon (in millions) 92,430 91,144 81,790 67,842 61,395
Book value per share (BVPS)2 21.98 21.70 19.48 16.39 14.84
Share price1, 3 39.72 40.01 53.32 56.50 58.20
Valuation Ratio
P/BV ratio4 1.81 1.84 2.74 3.45 3.92
Benchmarks
P/BV Ratio, Competitors5
AT&T Inc. 1.16 1.41 1.03 1.26 1.50
T-Mobile US Inc. 2.97 2.58 2.25 2.27 2.46
P/BV Ratio, Sector
Telecommunication Services 1.84 1.88 1.73 1.99 2.14
P/BV Ratio, Industry
Communication Services 4.51 3.38 4.28 4.19 3.70

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 2023 Calculation
BVPS = Equity attributable to Verizon ÷ No. shares of common stock outstanding
= 92,430,000,000 ÷ 4,204,272,443 = 21.98

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

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 39.72 ÷ 21.98 = 1.81

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Verizon Communications Inc. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.