Verizon Communications Stock Price and Value Analysis

Should you buy Verizon Communications stock? (NYSE:VZ). Let's see how it does in our automated value investing analysis system.

VZ Free Cash Flow Trend

Free Cash Flow trendline for VZ
Free Cash Flow trendline for Verizon Communications

Based on historical returns, we believe that Verizon Communications can grow its free cash at a rate of about 3%. That's positive!

AdvantagesDisadvantagesNeutral
  • This company has a large dividend yield!
  • This company has stable growth.
  • This company is a well-established bedrock.
  • This company is making money at a modest rate.
  • This stock looks fairly priced.

Inside the VZ Numbers

VZ Price
(Verizon Communications stock price per share)
$56.00
[?] VZ Fair Price
(based on intrinsic value)
$58.47
[?] VZ Safety Price (based on a variable margin of safety) $49.70
[?] PE Ratio versus Sector 20% lower than other Technology stocks
[?] PE Ratio versus Industry 55% lower than other Telecom Services stocks
[?] Cash Yield 11.74%
[?] Free Cash Flow Jitter 16%
[?] Dividend Yield 4%
Shares Shorted 44,193,836

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 44,193,836 shares shorted. With 3,988,554,517 shares available for purchase and an average trading volume over the past 10 trading days of 21,336,042, it would take at least 2.071 days for all of the short holders to cover their shorts.

Is Verizon Communications Stock on Sale?

We believe that Verizon Communications may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Verizon Communications looks like a price in the fair value range. Based on our analysis—if the company keeps making money the way it has been—you could be looking at a good stock. See Before You Buy for your next steps.

Should You Buy VZ Stock?

Does Verizon Communications have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.