Latest Ratios: P/E Ratio 11.6x · EV/EBITDA 7.7x · ROE 16.6%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $190.8B | $172.3B | $168.7B | $158.9B | $165.6B | $215.6B | $243.3B | $254.2B | $232.3B | $216.4B | $218.1B |
| Enterprise Value | $372.3B | $353.9B | $332.8B | $331.8B | $339.4B | $390.6B | $371.7B | $384.7B | $342.6B | $331.4B | $323.3B |
| P/E Ratio → | 11.58 | 10.03 | 9.64 | 13.71 | 7.79 | 9.77 | 13.66 | 13.20 | 14.95 | 7.19 | 16.63 |
| P/S Ratio | 1.37 | 1.25 | 1.25 | 1.19 | 1.21 | 1.61 | 1.90 | 1.93 | 1.78 | 1.72 | 1.73 |
| P/B Ratio | 1.83 | 1.63 | 1.68 | 1.69 | 1.79 | 2.59 | 3.51 | 4.05 | 4.25 | 4.84 | 9.08 |
| P/FCF | 22.27 | 8.76 | 8.91 | 8.49 | 15.93 | — | 11.34 | 15.03 | 14.29 | 33.36 | 53.25 |
| P/OCF | 5.14 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 7.66 | 7.43 | 6.86 | 7.14 | 7.13 | 8.11 | 7.98 | 8.06 | 7.23 | 7.62 | 7.73 |
| EV / EBIT | 12.73 | 12.05 | 11.23 | 14.74 | 10.65 | 11.87 | 13.16 | 14.01 | 14.01 | 13.09 | 12.75 |
| EV / FCF | — | 17.99 | 17.59 | 17.73 | 32.63 | — | 17.33 | 22.75 | 21.08 | 51.09 | 78.93 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | — | 9.23 | 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 5.9% | 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% |
| 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 | 4.5% | 11.4% | 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 | 5.9% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying VZ stock.
Verizon Communications Inc.'s current P/E ratio is 11.6x. The historical average is 22.6x. This places it at the 28th percentile of its historical range.
Verizon Communications Inc.'s current EV/EBITDA is 7.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.2x.
Verizon Communications Inc.'s return on equity (ROE) is 16.6%. The historical average is 22.0%.
Based on historical data, Verizon Communications Inc. is trading at a P/E of 11.6x. This is at the 28th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Verizon Communications Inc.'s current dividend yield is 5.94% with a payout ratio of 66.9%.
Verizon Communications Inc. has 45.6% gross margin and 21.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Verizon Communications Inc.'s Debt/EBITDA ratio is 4.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Leverage limiting dividend flexibility
Metrics are mathematically derived from official filings.
Yield Anchor vs Growth Discount
With a trailing P/E of 10.82 and forward P/E of 8.78, Verizon trades at a wide discount to T-Mobile's 15.11 while its 6.2% dividend yield exceeds AT&T's 5.4%, per current market pricing—suggesting investors value the shares primarily as a high-yield income proxy.
The 6.2% yield sits well above typical investment-grade telecom spreads, which may indicate the market demands compensation for the ~$144B debt load and the uncertain durability of the payout rather than rewarding the Q2 2026 beat-and-raise. The forward P/E of 8.78 versus trailing 10.82 implies consensus expects earnings recovery, but investors should monitor whether that expected re-rating materializes or simply reflects depressed trailing EPS from episodic adjustments. The 1.76 P/B premium to AT&T's 1.17 appears difficult to justify on the current ROE profile alone, suggesting the market is assigning value to spectrum and fiber assets that earnings power has not yet demonstrated.
Margin Recovery Follows Promo Pullback
Verizon's operating margin climbed to 25.2% in Q3 2026, the highest across the ten-quarter series and up from 21.0% in the prior quarter, while net margin recovered to 15.1% from 11.2%, according to reported quarterly figures—suggesting promotional intensity has eased.
The margin inflection alongside the myPlan and Simplicity subscriber gains suggests value-based retention may be reducing the subsidy burden that compressed margins in Q4 2025, when operating margin fell to 13.8% and payout ratio spiked to 124.3%. However, the 45.64% gross margin remains structurally diluted by low-margin device sales, so further expansion appears dependent on service revenue mix and fixed wireless penetration rather than cost reductions. Investors should note that the recovery has not yet lifted quarterly ROE above the 5.0% ceiling seen in 2024Q4, implying the equity base is absorbing C-Band depreciation faster than margins can expand.
Leverage Caps Financial Flexibility
Debt-to-capital held at 0.64 in Q3 2026 with interest coverage of 4.44x and FFO/debt of 7.05, yet the debt-to-equity ratio of 1.90 and roughly $144 billion of total debt remain elevated versus AT&T's 1.35, as disclosed in recent company filings.
Coverage has been volatile—falling as low as 2.74x in Q4 2025 versus 5.03x a year earlier—which suggests earnings sensitivity to rate and refinancing conditions rather than a stable fixed-charge cushion. The current ratio of 0.63 for the latest quarter, below 1.0 in every period of the series, indicates a structural reliance on operating cash flow to meet near-term obligations, warranting attention to the maturity ladder. Slow deleveraging from the $200.6B peak in 2025Q4 to $189.0B implies balance sheet repair is underway but likely to remain the binding constraint on capital allocation for some time.
Dividend Covered, But Crowded
The 56.6% payout ratio and 6.2% yield are supported by operating cash flow that covered the $2.9–$3.0B quarterly dividend 2.7x to 3.9x across ten quarters, based on reported cash flow statements—yet capital expenditure has consumed 40–60% of OCF in typical periods.
Coverage ratios of 2.7x–3.9x suggest the dividend itself is not the primary cash stress; rather, the crowding comes from network investment and interest obligations, since Q1 2026 capex of $13.6B reached roughly 170% of operating cash flow. The occasional payout spikes above 100% (124.3% in Q4 2025) reflect episodic earnings volatility rather than a dividend policy change, but they illustrate how thin the margin for error becomes in weak quarters. With buybacks of $500M–$2.5B per quarter alongside the dividend, investors should assess whether shareholder distributions are being prioritized over balance sheet repair at the current leverage level.
Trailing AT&T on Returns, TMUS on Growth
Verizon's latest quarterly ROE of 4.9% and 15.1% net margin compare with AT&T's 10.3% ROE and T-Mobile's 18.2% ROE, while its 10.82 P/E sits between AT&T's 6.89 and T-Mobile's 15.11, per the current peer comp set.
Verizon's net margin of 15.1% sits below AT&T's 17.4% but above T-Mobile's 12.4%, suggesting the company occupies a middle position where neither cost discipline nor growth justifies a valuation premium. The market appears to discount Verizon relative to T-Mobile's growth profile while refusing it the deep-value multiple applied to AT&T, which may imply investors expect Verizon's FWA and converged offerings to close the ROE gap—expectations that warrant verification against sustained subscriber momentum. The 6.2% yield premium over T-Mobile's 2.5% effectively prices Verizon as the yield-oriented holding of the group, consistent with how the sector's two lower-growth carriers are valued.
Payout Ratio Misreads Cash Reality
The dividend payout ratio is the most commonly misapplied metric here: at 56.6% it looks comfortably conservative, yet it ignores capex consuming 40–60% of operating cash flow and a Q1 2026 spike to 170%, plus roughly $144B of debt service obligations.
The payout ratio is computed against net income, which includes depreciation on spectrum assets that require ongoing cash reinvestment and is distorted by the swing from $0.55 EPS in Q4 2025 to $1.25 in Q3 2026—so a stable-looking payout percentage can coexist with materially different levels of true free cash flow coverage. A more informative adjustment would be dividend coverage measured against free cash flow after capex, alongside FFO/debt of 7.05 and interest coverage, which better captures the constraint that leverage places on simultaneous funding of the network, the dividend, and buybacks. Analysts comparing Verizon's payout ratio to non-capital-intensive sectors would risk understating the cash claims ranking ahead of shareholders, including refinancing needs and any contingent remediation costs that have not been quantified in the supplied data.