Verizon Communications Inc. (VZ) Financial Ratios
30 years of historical data (1996–2025) · Communication Services · Telecommunications Services
EV/EBITDA
↓
8.02
+9% vs avg
5yr avg: 7.34
30Y Low3.8·High8.3
P/FCF
↓
9.94
-5% vs avg
5yr avg: 10.47
30Y Low4.5·High55.4
P/B Ratio
↓
1.90
+1% vs avg
5yr avg: 1.88
30Y Low1.0·High13.6
ROE
↓
16.6%
-17% vs avg
5yr avg: 20.1%
30Y Low1%·High113%
Debt/EBITDA
↑
4.21
+12% vs avg
5yr avg: 3.77
30Y Low1.0·High4.2
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
VZ Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Verizon Communications Inc. trades at 11.7x earnings, 15% above its 5-year average of 10.2x, sitting at the 28th percentile of its historical range. Compared to the Communication Services sector median P/E of 15.5x, the stock trades at a discount of 25%. On a free-cash-flow basis, the stock trades at 9.9x P/FCF, 5% below the 5-year average of 10.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $200.1B | $172.3B | $168.7B | $158.9B | $165.6B | $215.6B | $243.3B | $254.2B | $232.3B | $216.4B | $218.1B |
| Enterprise Value | $381.6B | $353.9B | $332.8B | $331.8B | $339.4B | $390.6B | $371.7B | $384.7B | $342.6B | $331.4B | $323.3B |
| P/E Ratio → | 11.68 | 10.03 | 9.64 | 13.71 | 7.79 | 9.77 | 13.66 | 13.20 | 14.95 | 7.19 | 16.63 |
| P/S Ratio | 1.45 | 1.25 | 1.25 | 1.19 | 1.21 | 1.61 | 1.90 | 1.93 | 1.78 | 1.72 | 1.73 |
| P/B Ratio | 1.90 | 1.63 | 1.68 | 1.69 | 1.79 | 2.59 | 3.51 | 4.05 | 4.25 | 4.84 | 9.08 |
| P/FCF | 9.94 | 8.56 | 8.91 | 8.49 | 15.93 | — | 11.34 | 15.03 | 14.29 | 33.36 | 53.25 |
| P/OCF | 5.39 | 4.64 | 4.57 | 4.24 | 4.46 | 5.45 | 5.83 | 7.11 | 6.76 | 8.90 | 10.06 |
P/E links to full P/E history page with 30-year chart
VZ EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Verizon Communications Inc.'s enterprise value stands at 8.0x EBITDA, 9% above its 5-year average of 7.3x. The Communication Services sector median is 8.7x, placing the stock at a 8% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.56 | 2.47 | 2.48 | 2.48 | 2.92 | 2.90 | 2.92 | 2.62 | 2.63 | 2.57 |
| EV / EBITDA | 8.02 | 7.43 | 6.86 | 7.14 | 7.13 | 8.11 | 7.98 | 8.06 | 7.23 | 7.62 | 7.73 |
| EV / EBIT | 13.04 | 12.05 | 11.23 | 14.74 | 10.65 | 11.87 | 13.16 | 14.01 | 14.01 | 13.09 | 12.75 |
| EV / FCF | — | 17.58 | 17.59 | 17.73 | 32.63 | — | 17.33 | 22.75 | 21.08 | 51.09 | 78.93 |
VZ Profitability
Margins and return-on-capital ratios measuring operating efficiency
Verizon Communications Inc. earns an operating margin of 21.2%. ROE of 16.6% indicates solid capital efficiency. ROIC of 8.0% represents adequate returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.6% | 45.6% | 46.6% | 45.9% | 44.3% | 45.7% | 47.1% | 45.8% | 44.5% | 45.6% | 46.5% |
| Operating Margin | 21.2% | 21.2% | 22.7% | 21.5% | 22.3% | 23.9% | 23.3% | 23.5% | 22.9% | 21.0% | 20.6% |
| Net Profit Margin | 12.4% | 12.4% | 13.0% | 8.7% | 15.5% | 16.5% | 13.9% | 14.6% | 11.9% | 23.9% | 10.4% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.6% | 16.6% | 18.0% | 12.5% | 24.2% | 28.9% | 26.9% | 32.8% | 31.2% | 87.6% | 62.7% |
| ROA | 4.4% | 4.4% | 4.6% | 3.1% | 5.7% | 6.5% | 5.9% | 6.9% | 5.9% | 12.0% | 5.4% |
| ROIC | 8.0% | 8.0% | 8.6% | 8.1% | 8.7% | 10.5% | 11.5% | 13.0% | 13.9% | 13.8% | 15.4% |
| ROCE | 8.8% | 8.8% | 9.5% | 8.8% | 9.4% | 10.7% | 11.4% | 13.1% | 13.3% | 12.1% | 12.3% |
VZ Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Verizon Communications Inc. carries a Debt/EBITDA ratio of 4.2x, which is highly leveraged (23% above the sector average of 3.4x). Net debt stands at $181.5B ($200.6B total debt minus $19.0B cash). Interest coverage of 4.4x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.90 | 1.90 | 1.67 | 1.87 | 1.91 | 2.14 | 2.17 | 2.12 | 2.07 | 2.62 | 4.50 |
| Debt / EBITDA | 4.21 | 4.21 | 3.47 | 3.77 | 3.71 | 3.69 | 3.23 | 2.79 | 2.38 | 2.69 | 2.58 |
| Net Debt / Equity | — | 1.72 | 1.63 | 1.84 | 1.88 | 2.10 | 1.85 | 2.08 | 2.02 | 2.57 | 4.38 |
| Net Debt / EBITDA | 3.81 | 3.81 | 3.39 | 3.72 | 3.65 | 3.63 | 2.76 | 2.74 | 2.33 | 2.65 | 2.51 |
| Debt / FCF | — | 9.02 | 8.68 | 9.24 | 16.70 | — | 5.98 | 7.72 | 6.79 | 17.73 | 25.68 |
| Interest Coverage | 4.39 | 4.39 | 4.45 | 4.07 | 8.89 | 9.41 | 6.61 | 5.81 | 5.06 | 5.35 | 5.80 |
VZ Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.91x is below 1.0, meaning current liabilities exceed current assets — though the company's $19.0B cash position helps mitigate short-term liquidity concerns. The current ratio has improved from 0.69x to 0.91x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.91 | 0.91 | 0.63 | 0.69 | 0.75 | 0.78 | 1.38 | 0.84 | 0.91 | 0.91 | 0.87 |
| Quick Ratio | 0.87 | 0.87 | 0.59 | 0.65 | 0.71 | 0.71 | 1.33 | 0.80 | 0.88 | 0.87 | 0.83 |
| Cash Ratio | 0.31 | 0.31 | 0.06 | 0.04 | 0.05 | 0.06 | 0.56 | 0.06 | 0.07 | 0.06 | 0.09 |
| Asset Turnover | — | 0.34 | 0.35 | 0.35 | 0.36 | 0.36 | 0.41 | 0.45 | 0.49 | 0.49 | 0.52 |
| Inventory Turnover | 30.77 | 30.77 | 32.04 | 35.25 | 31.92 | 23.73 | 37.82 | 50.22 | 54.35 | 66.26 | 56.03 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
VZ Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Verizon Communications Inc. returns 5.7% to shareholders annually primarily through dividends. A payout ratio of 66.9% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 8.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.7% | 6.7% | 6.7% | 6.9% | 6.5% | 4.8% | 4.2% | 3.9% | 4.2% | 4.4% | 4.2% |
| Payout Ratio | 66.9% | 66.9% | 64.3% | 94.9% | 50.8% | 47.3% | 57.5% | 52.0% | 62.9% | 31.5% | 70.6% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.6% | 10.0% | 10.4% | 7.3% | 12.8% | 10.2% | 7.3% | 7.6% | 6.7% | 13.9% | 6.0% |
| FCF Yield | 10.1% | 11.7% | 11.2% | 11.8% | 6.3% | — | 8.8% | 6.7% | 7.0% | 3.0% | 1.9% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 5.7% | 6.7% | 6.7% | 6.9% | 6.5% | 4.8% | 4.2% | 3.9% | 4.2% | 4.4% | 4.2% |
| Shares Outstanding | — | $4.2B | $4.2B | $4.2B | $4.2B | $4.2B | $4.1B | $4.1B | $4.1B | $4.1B | $4.1B |
Peer Comparison
Compare VZ with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 VZYou | $200B | 11.7 | 8.0 | 9.9 | 45.6% | 21.2% | 16.6% | 8.0% | 4.2 |
 T | $178B | 8.4 | 7.4 | 9.2 | 79.8% | 19.2% | 17.6% | 6.7% | 3.9 |
 TMUS | $209B | 19.9 | 10.1 | 20.2 | 47.6% | 21.2% | 18.2% | 8.1% | 3.8 |
 LUMN | $10B | -5.6 | 10.5 | 27.2 | 46.5% | -1.5% | — | -0.8% | 6.9 |
 FYBR | $10B | -29.6 | 10.5 | — | 64.5% | 5.9% | -6.3% | 1.7% | 6.1 |
 SHEN | $897M | -22.8 | 13.8 | — | 26.9% | -6.2% | -4.0% | -1.1% | 5.9 |
 TDS | $5B | -69.0 | 20.8 | 1.8 | -5.0% | -5.0% | -0.1% | -0.5% | 6.7 |
 CSCO | $363B | 35.9 | 26.2 | 27.3 | 64.9% | 20.8% | 22.1% | 13.0% | 2.0 |
 ERIC | $37B | 13.8 | 9.0 | 11.9 | 48.1% | 13.8% | 26.3% | 22.3% | 1.2 |
 NOK | $75B | 102.2 | 33.7 | 45.7 | 43.5% | 3.9% | 3.1% | 3.0% | 2.7 |
 QCOM | $203B | 38.5 | 15.2 | 15.8 | 55.4% | 27.9% | 23.3% | 29.1% | 1.2 |
| Communication Services Median | — | 15.5 | 8.7 | 11.6 | 49.1% | 0.9% | 2.2% | 3.3% | 3.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonVZ — Frequently Asked Questions
Quick answers to the most common questions about buying VZ stock.
What is Verizon Communications Inc.'s P/E ratio?
Verizon Communications Inc.'s current P/E ratio is 11.7x. The historical average is 22.6x. This places it at the 28th percentile of its historical range.
What is Verizon Communications Inc.'s EV/EBITDA?
Verizon Communications Inc.'s current EV/EBITDA is 8.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.2x.
What is Verizon Communications Inc.'s ROE?
Verizon Communications Inc.'s return on equity (ROE) is 16.6%. The historical average is 22.0%.
Is VZ stock overvalued?
Based on historical data, Verizon Communications Inc. is trading at a P/E of 11.7x. This is at the 28th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Verizon Communications Inc.'s dividend yield?
Verizon Communications Inc.'s current dividend yield is 5.72% with a payout ratio of 66.9%.
What are Verizon Communications Inc.'s profit margins?
Verizon Communications Inc. has 45.6% gross margin and 21.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Verizon Communications Inc. have?
Verizon Communications Inc.'s Debt/EBITDA ratio is 4.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.