Highly Regarded

Is Verizon Communications Inc. (VZ) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Communication Services sector peers in our coverage

Insufficient Data TTM fundamentals · sector averages from covered peers

We don’t have enough peer data to compute a reliable sector comparison for VZ right now.

VZ has negative trailing-twelve-month earnings, so a P/E ratio isn't meaningful — we compare on price-to-sales instead.

The Numbers

P/E (TTM)

—

Sector avg: 22.4×

P/S (TTM)

—

Sector avg: 5.7×

Market Cap

$210.98B

EPS (TTM): —

Revenue (TTM)

—

Net income: —

Communication Services Peer Comparison

How VZ's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
VZ This page $50.03 —
GOOGL $339.32 31.4×
META $572.18 24.4×
NFLX $81.04 32.0×
DIS $107.55 15.8×
T $25.89 8.5×

Is the Multiple Justified?

August 9, 2026

Verizon Communications Inc. (VZ) currently reports negative TTM earnings, making its P/E multiple not applicable, and a comparative P/S ratio is not provided. The negative TTM earnings are largely attributable to significant pre-tax special items in the second quarter of 2026, including a loss from classifying its international wireline business as held for sale, severance, and asset rationalization charges. Despite this, Verizon lifted its full-year adjusted earnings and free cash flow guidance, driven by strong subscriber additions. The company added 184,000 postpaid phone subscribers and 348,000 broadband subscribers in Q2, exceeding analyst estimates, a result of its revamped 5G strategy and new bundles. While total revenue missed expectations due to slower phone upgrades and declining equipment sales, adjusted EBITDA reached a record 40.1% margin. High debt levels and substantial ongoing investments in 5G and fiber networks remain key considerations for the company's financial outlook.

Sources

Frequently Asked Questions

Is VZ overvalued or undervalued?
We don't have enough peer data to compute a sector comparison for VZ right now.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing VZ with its own Communication Services peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Communication Services names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

Keep Digging on VZ

Verizon Communications Inc. Overview

Price, chart, analysis & financials

VZ: Overbought or Oversold?

Updated daily

VZ: Why Is It Moving?

Updated daily

VZ: Price Prediction

Updated daily

Same question, Communication Services peers

DIS GOOGL NFLX META T