Common Stock Valuation Ratios (Price Multiples)
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).
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- Income Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
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Current Valuation Ratios
Verizon Communications Inc., current price multiples
| Verizon Communications Inc. | AT&T Inc. | T-Mobile US Inc. | Telecommunication Services | Communication Services | ||||
|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||
| Current share price (P) | ||||||||
| No. shares of common stock outstanding | ||||||||
| Growth rate (g) | ||||||||
| Earnings per share (EPS) | ||||||||
| Next year expected EPS | ||||||||
| Operating profit per share | ||||||||
| Sales per share | ||||||||
| Book value per share (BVPS) | ||||||||
| Valuation Ratios (Price Multiples) | ||||||||
| Price to earnings (P/E) | ||||||||
| Price to next year expected earnings | ||||||||
| Price-earnings-growth (PEG) | ||||||||
| Price to operating profit (P/OP) | ||||||||
| Price to sales (P/S) | ||||||||
| Price to book value (P/BV) | ||||||||
Based on: 10-K (reporting date: 2025-12-31).
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
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2025-12-31), 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).
The valuation ratios exhibit varied trends over the five-year period. Generally, the ratios demonstrate fluctuation, suggesting shifts in investor sentiment and market conditions impacting the company’s perceived value. A period of relative undervaluation appears to have occurred in 2022, followed by a partial recovery and subsequent stabilization with some renewed increases towards the end of the period.
- Price to Earnings (P/E)
- The Price to Earnings ratio decreased from 10.14 in 2021 to 7.91 in 2022, indicating a decline in investor willingness to pay for each dollar of earnings. It then increased substantially to 14.38 in 2023 before decreasing again to 9.75 in 2024. The ratio concludes the period with a rise to 12.02 in 2025. This suggests volatility in earnings expectations or stock price movements relative to earnings.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, the Price to Operating Profit ratio also decreased from 6.90 in 2021 to 5.52 in 2022. A subsequent increase to 7.30 in 2023 was followed by a decrease to 5.95 in 2024, and a final increase to 7.05 in 2025. The pattern mirrors that of the P/E ratio, indicating a consistent relationship between stock price and operating profitability.
- Price to Sales (P/S)
- The Price to Sales ratio experienced a decrease from 1.68 in 2021 to 1.23 in 2022. It remained relatively stable between 1.25 and 1.27 for 2023 and 2024, before increasing to 1.49 in 2025. This suggests a gradual increase in investor confidence in the company’s revenue generation capabilities towards the end of the period.
- Price to Book Value (P/BV)
- The Price to Book Value ratio declined consistently from 2.74 in 2021 to 1.72 in 2024, indicating a decreasing premium investors were willing to pay for the company’s net assets. The ratio then increased slightly to 1.98 in 2025, potentially signaling a stabilization of asset valuation or a renewed interest in the company’s underlying value.
Overall, the observed fluctuations across these ratios suggest a dynamic valuation landscape. The period between 2022 and 2024 appears to represent a period of adjustment, while 2025 shows indications of potential stabilization and modest growth in valuation multiples.
Price to Earnings (P/E)
Verizon Communications Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to Verizon (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| AT&T Inc. | ||||||
| T-Mobile US Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Telecommunication Services | ||||||
| P/E Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income attributable to Verizon ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Verizon Communications Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited fluctuations over the five-year period. Initial values decreased before increasing and then stabilizing. The share price demonstrated a decline followed by a recovery, while earnings per share (EPS) showed a more pronounced volatility.
- Share Price
- The share price began at 53.32 US$ in 2021, decreased to 40.01 US$ in 2022, and remained relatively stable at 39.72 US$ and 40.53 US$ in 2023 and 2024 respectively. A notable increase to 48.93 US$ was observed in 2025.
- Earnings Per Share (EPS)
- Earnings per share started at 5.26 US$ in 2021 and decreased to 5.06 US$ in 2022. A significant decline to 2.76 US$ occurred in 2023, followed by a recovery to 4.16 US$ in 2024 and a slight decrease to 4.07 US$ in 2025.
- Price to Earnings (P/E) Ratio
- The P/E ratio decreased from 10.14 in 2021 to 7.91 in 2022, indicating a potential decrease in investor confidence or expectations of future earnings growth relative to the share price. An increase to 14.38 was recorded in 2023, likely driven by the lower EPS value. The ratio then decreased to 9.75 in 2024, coinciding with the increase in EPS. Finally, the P/E ratio settled at 12.02 in 2025.
The interplay between share price and EPS significantly influenced the P/E ratio. The substantial drop in EPS in 2023 resulted in a higher P/E ratio, despite the relatively stable share price. The subsequent recovery in EPS in 2024 and 2025, coupled with the share price increase in 2025, led to a more moderate P/E ratio.
Price to Operating Profit (P/OP)
Verizon Communications Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| AT&T Inc. | ||||||
| T-Mobile US Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Telecommunication Services | ||||||
| P/OP Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Verizon Communications Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The Price to Operating Profit (P/OP) ratio for the observed period exhibits fluctuations, generally tracking the share price and operating profit per share. An initial decline is followed by an increase and subsequent stabilization. The ratio’s movement suggests a dynamic relationship between market valuation and underlying operational performance.
- Share Price
- The share price decreased from US$53.32 in 2021 to US$40.01 in 2022, representing a significant decline. It remained relatively stable at US$39.72 in 2023 before increasing to US$40.53 in 2024 and further to US$48.93 in 2025. This indicates a recovery in market valuation towards the end of the period.
- Operating Profit Per Share
- Operating profit per share decreased from US$7.73 in 2021 to US$7.25 in 2022, followed by a more substantial decrease to US$5.44 in 2023. A recovery was observed in 2024, with operating profit per share rising to US$6.81, and continued modestly to US$6.94 in 2025. This suggests operational performance experienced a downturn before stabilizing and showing slight improvement.
- P/OP Ratio
- The P/OP ratio began at 6.90 in 2021, decreased to 5.52 in 2022, and then increased to 7.30 in 2023. It subsequently decreased to 5.95 in 2024 before rising again to 7.05 in 2025. The initial decrease in the ratio in 2022 aligns with the decline in both share price and operating profit per share. The increase in 2023, despite a further decline in operating profit per share, suggests the share price did not fall proportionally, potentially indicating investor expectations or other market factors. The stabilization in 2024 and 2025, with a slight increase in 2025, reflects the combined effect of share price recovery and modestly improving operating profit per share.
The interplay between the share price and operating profit per share is evident in the P/OP ratio’s movements. The ratio’s fluctuations suggest that market sentiment and investor expectations play a role in valuation, alongside the company’s operational performance. The recent trend indicates a potential re-evaluation of the company’s prospects, as evidenced by the increasing share price and stabilizing operating profit per share.
Price to Sales (P/S)
Verizon Communications Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| AT&T Inc. | ||||||
| T-Mobile US Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Telecommunication Services | ||||||
| P/S Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Operating revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Verizon Communications Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited a declining trend from 2021 to 2022, followed by relative stability and a subsequent increase towards the end of the observed period. This analysis details the observed movements in the ratio and its constituent components.
- Price-to-Sales Ratio
- The price-to-sales ratio decreased significantly from 1.68 in 2021 to 1.23 in 2022. This represents a substantial contraction in the valuation relative to sales. From 2022 to 2024, the ratio remained relatively stable, fluctuating between 1.23 and 1.27. However, in 2025, the ratio increased to 1.49, indicating a renewed expansion in valuation relative to sales.
- Share Price
- The share price experienced a notable decline from US$53.32 in 2021 to US$40.01 in 2022. It remained relatively flat between 2022 and 2024, with values ranging from US$39.72 to US$40.53. A subsequent increase was observed in 2025, with the share price reaching US$48.93.
- Sales per Share
- Sales per share demonstrated modest fluctuations throughout the period. It increased slightly from US$31.83 in 2021 to US$32.58 in 2022, then decreased to US$31.87 in 2023. Values remained relatively consistent in 2024 at US$32.02, and increased to US$32.76 in 2025.
The initial decrease in the price-to-sales ratio in 2022 was primarily driven by the decline in share price, as sales per share experienced only a modest increase. The subsequent stability in the ratio from 2022 to 2024 reflects the concurrent stability in both the share price and sales per share. The increase in the price-to-sales ratio in 2025 is attributable to the combined effect of an increasing share price and a slight increase in sales per share.
Price to Book Value (P/BV)
Verizon Communications Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Equity attributable to Verizon (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| AT&T Inc. | ||||||
| T-Mobile US Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Telecommunication Services | ||||||
| P/BV Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Equity attributable to Verizon ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Verizon Communications Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price to book value ratio exhibited a declining trend from 2021 to 2024, followed by a modest increase in 2025. This suggests a shifting perception of the market value relative to the net asset value of the company over the analyzed period.
- Price to Book Value (P/BV) Trend
- The P/BV ratio decreased from 2.74 in 2021 to 1.72 in 2024, representing a substantial contraction. This indicates that the market was valuing the equity of the company at a progressively lower multiple of its book value. The ratio then increased to 1.98 in 2025, signaling a potential stabilization or slight re-evaluation by the market.
The share price experienced a significant decline between 2021 and 2022, falling from US$53.32 to US$40.01. While the share price remained relatively stable between 2022 and 2024, it showed an increase in 2025, reaching US$48.93. This price movement contributed to the observed changes in the P/BV ratio.
- Book Value Per Share (BVPS) Trend
- Book value per share demonstrated a consistent upward trend throughout the period, increasing from US$19.48 in 2021 to US$24.77 in 2025. This growth in BVPS, while present, was not sufficient to offset the initial decline in share price, contributing to the decrease in the P/BV ratio. The continued increase in BVPS in later years likely supported the modest recovery in the P/BV ratio observed in 2025.
The combined effect of a decreasing share price and increasing book value per share resulted in a notable decrease in the P/BV ratio between 2021 and 2024. The subsequent increase in share price in 2025, coupled with continued growth in book value, led to a slight increase in the P/BV ratio, suggesting a potential shift in investor sentiment.