COMPILED BY GEMINI 3.1

Verizon (VZ) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$138.20 per share
Current Price $181.00
Margin of Safety -23.6%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
2.0%

"> Verizon is a mature telecom giant in a saturated market. Revenue growth is typically in the low single digits. Free cash flow is relatively stable, though high capital intensity limits explosive growth. A 2% growth rate reflects modest price increases and slow subscriber additions.

Discount Rate (WACC)
8.0%

"> Verizon is a mature telecom giant in a saturated market. Revenue growth is typically in the low single digits. Free cash flow is relatively stable, though high capital intensity limits explosive growth. A 2% growth rate reflects modest price increases and slow subscriber additions.

Terminal Growth Rate
8.0%

"> Verizon is a mature telecom giant in a saturated market. Revenue growth is typically in the low single digits. Free cash flow is relatively stable, though high capital intensity limits explosive growth. A 2% growth rate reflects modest price increases and slow subscriber additions.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 7.0%7.5%8.0%8.5%9.0%
7.0% $138.20 $138.20 $138.20 $138.20 $138.20
7.5% $138.20 $138.20 $138.20 $138.20 $138.20
8.0% $138.20 $138.20 $138.20 $138.20 $138.20
8.5% $138.20 $138.20 $138.20 $138.20 $138.20
9.0% $138.20 $138.20 $138.20 $138.20 $138.20

Undervalued vs current price Overvalued vs current price

Economic Prospect Score

60 / 100
Moderate Prospect

Verizon stands as a mature, cash-generating telecommunications giant with a massive 146.1 million subscriber base and a highly defensible economic moat. However, sluggish 0.02 revenue growth and a staggering 184813993984 total debt load significantly constrain its ability to outperform. While the 5.72 dividend yield is attractive for income investors, aggressive competition and capital-intensive infrastructure requirements limit significant upside potential.

Competitive Momentum 20/35

Verizon faces intense competition and sluggish top-line growth, heavily relying on its Fixed Wireless Access (FWA) expansion to offset legacy business declines.

Moat Durability 26/35

The company benefits from massive scale, substantial switching costs, and significant regulatory barriers to entry, though it is hindered by immense capital requirements.

Sentiment & Catalysts 14/30

Market sentiment remains cautious, viewing Verizon primarily as a bond proxy due to its 5.72 dividend yield and staggering debt burden.

⚠️ Key Risks

🚀 Key Catalysts

Frequently Asked Questions

Why use DCF instead of a dividend discount model (DDM) for a telecom?

Westmount Research. "Verizon (VZ) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, March 18, 2026.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.