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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: 22.1×

P/S (TTM)

—

Sector avg: 5.7×

Market Cap

$177.45B

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 $42.08 —
GOOGL $366.44 33.9×
META $600.39 25.6×
NFLX $76.04 30.1×
DIS $97.40 14.3×
T $20.59 6.8×

Is the Multiple Justified?

July 6, 2026

Verizon, with negative TTM earnings, does not have a comparable sector P/S. However, its recent Q1 2026 performance indicates positive momentum, with EPS beating expectations and revenue growing 2.9% year-over-year. The company achieved its first positive Q1 postpaid phone net additions in 13 years, alongside improved adjusted EBITDA. Verizon has raised its full-year 2026 adjusted EPS growth guidance and expects continued growth in mobility and broadband service revenue, supported by its 5G expansion. The company is also focused on debt reduction, targeting a lower net unsecured leverage ratio by 2027. These factors, including subscriber growth and strategic investments, contribute to its valuation despite the reported negative TTM earnings.

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.

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Same question, Communication Services peers

T META NFLX GOOGL DIS