VZ
Verizon Communications Inc
Price:  
42.61 
USD
Volume:  
23,431,606
United States | Diversified Telecommunication Services

Verizon Fair Value

-50.5 %
Upside

What is the fair value of Verizon?

As of 2025-07-10, the Fair Value of Verizon Communications Inc (VZ) is 21.09 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 42.61 USD, the upside of Verizon Communications Inc is -50.5%.

Is Verizon a good investment?

With the market price of 42.61 USD and our fair value calculation, Verizon Communications Inc (VZ) is not a good investment. Investing in Verizon stocks now will result in a potential loss of 50.5%.

42.61 USD
Stock Price
21.09 USD
Fair Price
FAIR VALUE CALCULATION

Verizon Fair Value

Peter Lynch's formula is:

Verizon Fair Value
= Earnings Growth Rate x TTM EPS
Verizon Fair Value
= 5 x 4.22
Verizon Fair Value
= 21.09

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income17,80122,06521,25611,61417,50618,048
YoY growth-7.6%24%-3.7%-45.4%50.7%3.6%

Verizon Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
AT&T Inc202,1961.641.1946.6%
Deutsche Telekom AG155,1792.460.5294.5%
Orange SA34,8600.922.0968.5%
Telus Corp34,2500.83.92-82.7%
BCE Inc30,1340.63.07-90.6%
IDT Corp1,6313.895.1947.2%
Cincinnati Bell Inc788-0.1-0.36-102.3%
Consolidated Communications Holdings Inc559-1.6-7.89-267.1%
ATN International Inc283-1.9-9.54-151.4%
LICT Corp239989.44,946.75-58.6%

Verizon Fair Value - Key Data

Market Cap (mil)179,644
P/E10.1x
Forward P/E10x
EPS4.22
Avg earnings growth rate3.6%
TTM earnings17,783

Verizon Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.