Intrinsic Value (DCF)
Current$50.14
→
Intrinsic$50.42
+1%
$19.77$50.42$111.44
Market implies 8% growth for 5 years
VZ appears fairly valued — current price aligns with our DCF estimate.
At $50, the market prices in 8% annual cash flow growth — a moderate expectation aligned with historical trends (8%).
Range: Bear $20 → Bull $111. Current price implies expectations near the base case.
| Discount ↓Growth → | 4% | 6% | 8% | 10% |
|---|---|---|---|---|
| 8% | $71 | $82 | $93 | $105 |
| 10% | $36 | $43 | $50 | $58 |
| 12% | $17 | $22 | $28 | $34 |
| 14% | $6 | $10 | $14 | $19 |
Bull Case
- Bull case ($111) offers 122% upside at 10% growth, 8% discount
- 1% margin of safety vs. base case estimate
- Conservative 8% growth assumption is achievable based on track record
Bear Case
- Bear case ($20) implies 61% downside at 6% growth, 12% discount
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5-Year Free Cash Flow Projection
Year 1$21.74B
Year 2$23.47B
Year 3$25.35B
Year 4$27.38B
Year 5$29.57B
Terminal$468.60B
📐 Model Inputs
Growth Rate8.0%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate9.5%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$20.13BTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
DCF estimates based on historical growth rates extrapolated forward. Regulated returns may affect assumptions. See FAQ below for full methodology.