What is Verizon Communications Intrinsic Value: Projected FCF?
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-04-25), Verizon Communications's Intrinsic Value: Projected FCF is $35.97. The stock price of Verizon Communications is $39.49. Therefore, Verizon Communications's Price-to-Intrinsic-Value-Projected-FCF of today is 1.1.
The historical rank and industry rank for Verizon Communications's Intrinsic Value: Projected FCF or its related term are showing as below:
VZ'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.87 Med: 1.44 Max: 2.18
Current: 1.1
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Verizon Communications was 2.18. The lowest was 0.87. And the median was 1.44.
VZ's Price-to-Projected-FCF is ranked worse than 55.16% of 281
companies
in the Telecommunication Services industry
Industry Median: 1.01
vs VZ: 1.10
Verizon Communications Intrinsic Value: Projected FCF Historical Data
The historical data trend for Verizon Communications's Intrinsic Value: Projected FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Verizon Communications's Intrinsic Value: Projected FCF
For the Telecom Services subindustry, Verizon Communications's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Verizon Communications's Price-to-Projected-FCF Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Verizon Communications's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Verizon Communications's Price-to-Projected-FCF falls into.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Verizon Communications's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
39.49
/
35.965072459254
=
1.10
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Verizon Communications Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of Verizon Communications's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Verizon Communications (Verizon Communications) Business Description
Verizon Communications is primarily a wireless business (it provides about 70% of service revenue and nearly all operating income). It serves about 92 million postpaid and 22 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest U.S. wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 25 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks.
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