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Verizon Communications Inc. — Beer Score

VZ · US Equity · Telecom — Communications
$43.00
Market Price (indicative) · Feb 7, 2026
+$0.15 (+0.35%) today
Reference price only. Not an official exchange feed.
81
/ 100
Solid Value — Est. 81% Fundamental Value
Updated: Feb 7, 2026 16:30 UTC·Filing: 10-K (Jan 29, 2026)·Model: DCF v1.0
Not investment advice · Model-based estimate
Estimated Value (Beer)
$34.83
81%
Est. Speculation Premium (Foam)
$8.17
19%
🍺 81% Est. Fundamental Value🫧 19% Est. Speculation
Track Score Alerts (Pro) See Model Assumptions ↓

Key Financials

TTM
Revenue$134.0B
Net Income$12.1B
Free Cash Flow$18.7B
P/E Ratio9.7x
EPS (TTM)$4.43
Market Cap$181B
Total Debt$149B
Cash & Equiv.$4.6B

DCF Valuation

Model Estimate
$34
Est. intrinsic value (DCF model)
vs $43.00 market price
Our model suggests the current price is ~24% above the estimated intrinsic value. The market may be pricing in growth beyond current fundamentals.
WACC7.5%
Growth Rate (5yr)2%
Terminal Growth2%
Margin of Safety~−24%

Model output varies with assumptions (WACC, growth, margins). This is not a price target or investment recommendation.

Score History — 90 Days

Pro
90d Low
77
90d High
83
Zone Changes
2

Verizon Stock Valuation — Beer Score Breakdown

Verizon's Beer Score of 81 means that, according to our DCF model, the stock is well-supported by fundamentals. An estimated 81% of the stock price is backed by earnings, cash flow, and assets.

How Beer Score Is Calculated for VZ

We pull Verizon's latest SEC filings from EDGAR, run a DCF analysis using a 7.5% WACC and 2% revenue growth rate over 5 years with 2% terminal growth, then compare the resulting model estimate ($34) against the current market price ($43.00). The Beer Score of 81 represents the ratio. Model output varies with assumptions. Learn more about our methodology →

Important Information

Beer Score is an educational indicator, not investment advice. It measures the model-estimated gap between a stock's current market price and an estimated intrinsic value derived from public financial data. A low Beer Score does not mean "sell" and a high score does not mean "buy." Model output varies with assumptions (WACC, growth rate, terminal growth, margins).

Prices shown are indicative reference prices for educational purposes only and are not sourced from an official exchange feed. Data sources include SEC EDGAR filings, indicative market price data, and proprietary DCF models. Scores update daily after market close. For the full ranking of all 45 stocks, visit the Beer Score Heatmap or read Today's Foam Report.

Track Verizon's Beer Score Over Time

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About This Valuation

Why does Verizon have a Beer Score of 69?
Verizon (VZ) scores 69 because the stock is currently trading roughly 44% above its estimated intrinsic value of $34. With $18.7B in annual free cash flow and $134.0B in revenue, the company's fundamentals partially justify the current market price of $49.01 per share. The Beer Score reflects that 69% of the price is backed by estimated fundamental value.
Is VZ overvalued or undervalued?
Based on our DCF model, Verizon appears moderately overvalued. The estimated intrinsic value of $34 compared to the current price of $49.01 carries a 31% speculation premium. This is a model-based estimate using 7.5% WACC and 2% projected growth — not a buy or sell recommendation. The actual fair value depends on assumptions that may change with new earnings data or market conditions.
What assumptions drive the $34 intrinsic value?
The DCF model uses a 7.5% weighted average cost of capital and projects 2% annual revenue growth over five years. Terminal growth is set at 2%. Starting from $18.7B in current free cash flow, these assumptions produce an estimated intrinsic value of $34 per share. The model is most sensitive to the growth rate and WACC inputs — small changes in either significantly alter the output.
What could change Verizon's Beer Score?
Verizon's score could improve if 5G fixed wireless broadband subscriber growth accelerates, offsetting legacy wireline declines. Heavy network capex limits free cash flow growth despite revenue stability. Competition from T-Mobile on pricing and network quality pressures wireless ARPU. The dividend yield provides a floor, but debt reduction pace determines financial flexibility for growth investments.

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