Market Pulse44Neutral

Verizon Communications Inc.Opportunity Rank #102(VZ) Intrinsic Value & DCF Analysis (2026)

Current Price

$45.36

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$45.36
Price
$154.48
Intrinsic Value
Undervalued by 241%MOS: $123.58

Fundamental Score

46/100
Bearish

Weighted across 6 signals

Narrative Score

69/100
Improving

-1 vs previous

Trend Score

36/100
Weak

As of 2026-06-22

The intrinsic value of Verizon Communications Inc. (VZ) is estimated at $154.48 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $45.36, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 1.24% long-term growth rate and an 8.50% discount rate (calculated: 5.98%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Verizon Communications Inc. (VZ) is estimated at $154.48 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $45.36, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 1.24% long-term growth rate and an 8.50% discount rate (calculated: 5.98%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$154.48
240.56% upside
20% margin of safety: $123.58
Years: 10Growth Rate: 1.24%
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Capital Efficiency

Average Quarterly ROIC
2.28%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

46/100
BearishWeighted across 6 signals
DCF Discount
240.6% discount to price
100
FCF Yield
28.8% trailing FCF yield
100
ROIC vs WACC
ROIC 2.3% vs WACC 11.0% (0.2x)
10
Net Debt / FCF
3.0x net debt to FCF
0
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
-1.3% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

69/100
Improving
-1 vs previous · +1 new driversVs 6-Month Baseline:Low (1st pct)Weighted across 6 recent drivers
Trend: Deteriorating downConfidence: 89%Updated: 33m ago
Sources: 177 (173 News · 4 Analyst)
Drivers(last 30 days)
143 news sentiment+1.6
2 restructuring+0.2
3 upgrade headlines+0.1
22 regulatory scrutiny+0.1
Legal risk+0.0
Layoffs-0.0

Trend Details

36/100
WeakAs of 2026-06-22308 daily bars used
3M Relative Strength vs SPY-24.0%
Distance from 52-Week High-11.7%
Price vs 50 EMA-3.5%
Price vs 21 EMA33 · -2.7%
Price vs 50 EMA33 · -3.5%
21 EMA vs 50 EMA43 · -0.8%
3M RS vs SPY2 · -24.0%
6M RS vs SPY50 · +0.1%
Distance from 52W High77 · -11.7%

Investment Coach

Updating... 12d ago
BUYConfidence: 55%
Thesis
Verizon Communications Inc. is significantly undervalued with an estimated fair value 232.8% above its current price, supported by a strong narrative score and a healthy free cash flow yield of 27.9%. Despite trailing returns relative to its cost of capital, the company's improving narrative and robust buybacks present a compelling buy opportunity.
Key Risk
The key risk is the company's return on invested capital (ROIC) remaining substantially below its weighted average cost of capital (WACC), which could undermine value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 1.24%5 Year CAGR (Adjusted): -0.93%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$54,624$54,148$54,902$56,242$63,881$59,825$62,086$54,583$52,426$42,148$39,282$56,802$48,176$56,002$51,596$46,024$49,821$48,437$44,690$44,377$41,207

How Intrinziq Estimates Fair Value

Intrinziq estimates Verizon Communications Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Verizon Communications Inc.Communication Services

Verizon Communications Inc. operates as a prominent global provider of diverse communication, technology, information, and entertainment solutions, catering to individuals, enterprises, and government entities worldwide through its various divisions. Its Consumer segment focuses on individual customers, supplying a broad spectrum of mobile service options, including both subscription-based (postpaid) and pay-as-you-go (prepaid) plans. This segment also facilitates internet access for portable devices such as laptop computers and tablets, and offers a variety of wireless hardware, ranging from smartphones and traditional mobile handsets to advanced wireless-enabled gadgets like tablets and smartwatches. Additionally, it delivers essential residential fixed connectivity services, which encompass internet, television, and voice communication. Verizon also extends its network capabilities by providing access to mobile virtual network operators. As of December 31, 2021, this segment reported approximately 115 million wireless retail connections, 7 million wireline broadband connections, and 4 million Fios video connections. The company's Business segment is dedicated to providing enterprise-level solutions. It offers comprehensive network connectivity products, including private networking, private cloud integration, virtual and software-defined networking, and high-speed internet access services. This segment further delivers sophisticated internet protocol-based voice and video communication tools, unified communications and collaboration platforms, and specialized customer contact center solutions. Beyond core connectivity, it provides a suite of managed services and data security offerings. Its extensive portfolio also covers domestic and international voice and data services, such as calling, messaging, conferencing, advanced contact center functionalities, and dedicated private line and data access networks. Moreover, the Business segment furnishes customer premises equipment, along with essential installation, maintenance, and on-site support services, and a wide array of Internet of Things (IoT) products and services. By December 31, 2021, this segment had approximately 27 million wireless retail postpaid connections and 477 thousand wireline broadband connections. Verizon Communications Inc. was incorporated in 1983 and holds its corporate headquarters in New York, New York. The company, which was originally known as Bell Atlantic Corporation, officially adopted its current name in June 2000.