VZ
Verizon Communications Inc.$51.20
Sell
Target $34.46
Report: Mar 07, 2026Communication Services • Telecommunications Services • Asset-Based OperatorSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$51.20-32.7%
Rec: SellConviction: Low
Entry Target
N/A
N/A
Fair Value
$34.46
(33% below current)
Stop Loss
N/A
N/A
Position Size
None
Time Horizon
N/A
Key Metrics
Live Snapshot
Market Data
52 Week High$51.68
52 Week Low$38.39
Avg. 3 Month Volume31.76M
Efficiency
LTM Gross Margin58.9%
LTM EBITDA Margin34.2%
LTM EBIT Margin20.9%
LTM Operating Margin21.2%
LTM ROA4.4%
LTM ROE16.6%
LTM ROIC9.6%
LTM ROCE8.9%
Capital Structure
Market Cap (MM)$211.7B
Enterprise Value (MM)$374.3B
Shares Outstanding4.23B
Total Debt (MM)$181.64B
Cash & Equivalents (MM)$19.05B
LTM Net Debt (MM)$162.59B
LTM Net Debt/EBITDA3.4x
Growth
TTM Rev. Growth2.5%
Last 3-Yr Rev. CAGR0.3%
Last 3-Yr EBITDA CAGR-0.8%
Last 3-Yr EPS CAGR-7.1%
Valuation
Street Target Price$50.14
LTM EV/Revenue2.7x
LTM EV/Gross Profit4.6x
LTM EV/EBIT12.9x
LTM EV/EBITDA7.9x
LTM P/E12.3x
LTM EV/FCF18.6x
LTM P/FCF10.5x
LTM P/TB1.0x
LTM P/B2.0x
Dividend Yield5.5%
Payout Ratio67.4%
Executive SummarySituation: Current price is $51.2 versus fair value $34.46 (-32.7% expected return), and valuation confidence is partial. Debate: Bull case depends on Frontier Integration Friction: The integration of Frontier's 9 million fiber passings is expected to be capital-intensive and may fail to deliver the promised 1 billion dollars in synergies, validating our view of poor M&A effectiveness. Bear case centers on Lead-Sheathed Cable Liability: Potential remediation costs and litigation related to legacy lead cables could result in multi-billion dollar liabilities. Conclusion: Recommendation is Sell with no position, pending a materially better risk/reward setup.
Bull Case
Management achieves 5 billion dollars in OpEx savings through AI-driven efficiencies and workforce reductions; Fixed Wireless Access (FWA) continues to disrupt cable monopolies with high-margin growth; Frontier integration delivers 1 billion dollars in run-rate synergies by 2028.
Bear Case
Lead-sheathed cable remediation liabilities trigger multi-billion dollar remediation costs; incremental ROIC remains negative at -18.9%, proving continued value destruction; high interest rates increase the cost of servicing the 181.6 billion dollar debt load.
Key Catalysts
Mid-Term (6-18 months)Impact: High
Frontier Integration Friction: The integration of Frontier's 9 million fiber passings is expected to be capital-intensive and may fail to de...
Near-Term (0-6 months)Impact: Critical
Margin Compression Realization: Continued reporting of flat wireless service revenue and contracting gross margins will likely force a marke...
Long-Term (18+ months)Impact: Moderate
Verizon is currently at a critical juncture following the January 2026 close of the Frontier acquisition, which coincides with a peak capita...
Primary Risks
Concern: High
Lead-Sheathed Cable Liability: Potential remediation costs and litigation related to legacy lead cables could result in multi-billion dollar...
Concern: Medium
Interest Rate Sensitivity: With 181.6 billion dollars in debt, sustained high interest rates will increase the cost of refinancing the 29.2%...
Concern: Medium
Stewardship is weak, characterized by significant insider selling and a lack of alignment between executive actions and shareholder value cr...
Recent Activity
2026-01-30SEC Filing (8-K)
+11.83%Verizon reports Q4 2025 earnings with highest quarterly net adds since 2019 and Frontier acquisition
2025-03-11SEC Filing (8-K)
-6.58%Verizon updates Q1 2025 outlook, citing pricing actions and flat gross additions affecting postpaid phone net additions.
2024-10-22SEC Filing (8-K)
-5.03%Verizon reported strong third-quarter 2024 results with customer growth in mobility and broadband, achieving fixed wireless subscriber target 15 months ahead of schedule.
2024-01-23SEC Filing (8-K)
+6.70%Verizon finished 2023 with strong cash flow and wireless customer growth, posting double-digit gains across fixed wireless and total wireless postpaid net additions.
2023-10-24SEC Filing (8-K)
+9.27%Verizon reports Q3 2023 earnings with strong broadband growth and raised free cash flow guidance
Valuation Table
7.5/10Decision Grade