Verizon (VZ) Stock May Be A Bargain At This Price
Verizon Communications has delivered a 66.7% return over the past three years, yet its valuation checks paint a more nuanced picture, with the stock screening as undervalued on market multiples but only scoring moderately on broader value tests. With recent news highlighting both growth initiatives and cost cuts, investors are weighing whether the current price already reflects much of that progress.
- Over the past three years, Verizon Communications has returned 66.7%, which puts current buyers in the position of judging whether that run has already captured most of the easy upside.
- On the positive side, the push into AI data center connectivity and bundled wireless broadband can support expectations for steadier revenue streams. At the same time, job cuts and store sales introduce execution and reputational risks that may affect how durable those cash flows look.
- Verizon Communications scores 4 out of 6 on the valuation checks, which suggests a mixed picture rather than an obvious bargain or clear overvaluation.
The issue now is whether Verizon Communications' current valuation still leaves enough margin for error after the recent gains and business reshaping.
Does Verizon Communications Look Undervalued on Earnings?
P/E is a useful cross check for Verizon Communications because earnings are a central focus for many investors watching its long term cash generation and payout capacity. The stock trades at about 11.2x earnings, which sits above the telecom peer average of roughly 9.4x but below the broader telecom industry average of about 16.9x.
On Simply Wall St's fair multiple of 14.0x, which reflects Verizon Communications' mix of growth prospects, margins, scale and risks, the current 11.2x P/E screens as a discount. Despite the recent upgrades to 2026 forecasts and the Google dark fiber deal lifting interest in the story, the market is still pricing Verizon Communications below what this earnings based framework suggests.
On the P/E multiple, Verizon Communications stock appears undervalued relative to the earnings level implied by this fair value benchmark.
See what the numbers say about this price — find out in our valuation breakdown.
The Verizon Communications Narrative: What Would Justify Today's Price?
Simply Wall St Narratives pick up where Verizon Communications' valuation puzzle leaves off by spelling out which assumptions about its future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's price on the Community page. Each narrative links a fair value to a particular storyline about Verizon Communications' possible catalysts and risks, so you can see over time which version is closest to how the business actually develops.
Community sentiment on Verizon Communications is split between those focused on convergence driven cash flow and those focused on capital intensity and execution risk.
Bull case: 11% undervalued
"Digital transformation among enterprises and increased remote work are sustaining strong demand for Verizon's private network and AI-enabled connectivity solutions, with an expanding $2B+ sales funnel and landmark deals indicating growing adoption of advanced use cases like edge computing, creating new high-margin enterprise revenue streams and enhancing overall net margins…"
Read the full Bull Case to see why Verizon Communications could be undervalued
Bear case: 8% overvalued
"The plan to reach 40 million to 50 million fiber passings over the medium term, including at least 2 million new passings in 2026 and continued fixed wireless access expansion, could require sustained heavy capital and integration spending that constrains revenue growth if broadband demand or pricing do not keep pace, which could pressure free cash flow and earnings…"
Read the full Bear Case to see why Verizon Communications could be overvalued
Do you think there's more to the story for Verizon Communications? Head over to our Community to see what others are saying!
The Bottom Line
Verizon Communications screens as undervalued on its P/E multiple, yet the broader valuation checks are mixed rather than clearly signaling a bargain. That puts the focus on whether the company can turn its AI and enterprise connectivity push into dependable earnings without letting capital intensity and cost cuts undermine the story. For you, the key question is whether the current discount reflects short term caution that could ease, or a fair price for the execution and reputational risks around Verizon Communications' next phase of investment.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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