Key Takeaways:
- Strategic Expansion: Verizon Communications Inc. completed the Frontier acquisition, expanding fiber reach to 30 million locations, strengthening bundled wireless and broadband positioning.
- Operational Momentum: Verizon Communications Inc. added 616000 postpaid subscribers in Q4, the highest quarterly increase in 6 years, confirming promotional execution.
- Price Framework: Verizon Communications Inc. valuation implies a $60 target by 2028 based on 2% revenue growth, 24% operating margins, and 9x earnings.
- Upside Math: Verizon Communications Inc. offers 35% total upside from $45, translating into a 11% annualized return over 3 years.
Verizon Communications Inc. (VZ) provides U.S. wireless and broadband connectivity at national scale, competing primarily on network reliability, pricing discipline, and bundled service depth.
Last week, Verizon Communications Inc. reported $36 billion quarterly revenue and $2 billion net income, confirming stabilization after several uneven operating quarters.
Verizon stock. maintained a 21% operating margin in 2025 as cost controls and restructuring actions offset promotional intensity and elevated capital spending.
Following the Frontier acquisition, Verizon Communications Inc. now reaches 30 million fiber locations, supporting subscriber growth targets of 1 million additions in 2026.
While Verizon Communications Inc. trades near $45 at 9x earnings, improving fundamentals contrast with restrained valuation, setting up a critical execution-versus-confidence debate.
What the Model Says for VZ Stock
We assessed Verizon stock using assumptions tied to fiber expansion, subscriber recovery, and stable cash generation across a mature U.S. telecom base.
Based on 2.3% revenue growth, 24.1% operating margins, and an 8.6x exit multiple, the model implies steady capital returns without valuation expansion.
That framework points to VZ stock reaching $60 per share, delivering 35% total upside and an 11% annualized return.
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for VZ stock:
1. Revenue Growth: 2.3%
Verizon Communications Inc. generated $138 billion in LTM revenue, with growth averaging 1% to 3% over five years across a saturated U.S. wireless market.
Recent execution improved as aggressive promotions drove 616,000 postpaid phone additions in Q4, the strongest quarterly growth in six years.
The Frontier acquisition expands fiber access to over 30 million locations, supporting bundled wireless and broadband growth while limiting upside from mature mobile pricing.
According to consensus analyst estimates, a 2.3% revenue growth assumption balances fiber-led convergence benefits against competitive intensity and limited volume expansion, supporting an 11% annual return outlook.
2. Operating Margins: 24.1%
Verizon stock historically sustained operating margins between 21% and 23%, reflecting scale advantages offset by high network maintenance and spectrum costs.
Margins improved recently as restructuring actions, including over 13,000 job reductions, reduced overhead while network investments normalized after peak 5G spending.
Ongoing fiber integration and disciplined capital allocation support incremental margin expansion, although pricing pressure and promotional activity cap near-term upside.
In line with analyst consensus projections, 24.1% operating margins reflect normalized telecom economics with improved cost discipline, supporting stable cash flow and dividend coverage.
3. Exit P/E Multiple: 8.6x
Verizon stock has historically traded between 9x and 11x earnings during periods of stable subscriber trends and predictable cash generation.
Current investor caution reflects modest revenue growth, regulatory exposure, and capital intensity, even as free cash flow guidance exceeds $21 billion annually.
Valuation support depends on sustained subscriber momentum, fiber monetization, and balance sheet stability without requiring renewed multiple expansion.
Based on street consensus estimates, an 8.6x exit multiple reflects conservative expectations for mature telecom growth while recognizing Verizon’s durable cash flow profile.
What Happens If Things Go Better or Worse?
Verizon stock outcomes depend on wireless subscriber momentum, fiber integration discipline, and cost control execution, setting up a range of possible paths through 2030.
- Low Case: If wireless promotions fade and fiber synergies lag, revenue grows near 1.7% and margins stay around 14.7% → 7.2% annualized return.
- Mid Case: With stable postpaid demand and disciplined cost actions, revenue growth reaches 1.9% and margins improve toward 15.4% → 11.2% annualized return.
- High Case: If fiber bundling scales and churn stays contained, revenue reaches 2.1% and margins approach 15.8% → 14.4% annualized return.
How Much Upside Does It Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
