Value Sense
VZ
Verizon Communications Inc. (VZ)
Last Price$46.14.1%
Market Cap$194.3B
WACC
4.4%
Cost of Equity
7.5%
Cost of Debt
0.8%
Debt to Equity
86.6%
Beta
0.5
Stock quality
6/10
Good
VZ
is 135.0% undervalued
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VZ WACC

Recent WACC calculation

as of Mar 07, 2025
Cost of Equity
% share of Total Capital
7.5%
53.6%
Risk-free rate
4.3%
Beta
0.7
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
0.8%
46.4%
Average Cost of Debt
1.0%
Effective Tax Rate
22.1%
WACC
4.4%

WACC dynamics

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VZ Cost of Equity

Recent Cost of Equity calculation

as of Mar 07, 2025
Risk-free rate
4.3%
Beta
0.7
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
7.5%

Cost of Equity dynamics

VZ vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Verizon Communications Inc. logo
Verizon Communications Inc.VZ
4.4%
0.6%
50.4%
13.0%
Median Peer Set
5.7%
1.8%
11.0%
9.2%
Comcast Corporation logo
Comcast CorporationCMCSA
9.1%
1.8%
11.0%
13.1%
Chunghwa Telecom Co., Ltd. logo
Chunghwa Telecom Co., Ltd.CHT
8.1%
55.7%
(3.4%)
16.6%
Orange S.A. logo
Orange S.A.ORAN
7.6%
4.2%
19.5%
5.5%
América Móvil, S.A.B. de C.V. logo
América Móvil, S.A.B. de C.V.AMX
6.0%
9.6%
16.3%
9.3%
T-Mobile US, Inc. logo
T-Mobile US, Inc.TMUS
5.7%
3.6%
38.2%
13.9%
AT&T Inc. logo
AT&T Inc.T
4.9%
(0.1%)
(22.1%)
8.9%
BCE Inc. logo
BCE Inc.BCE
4.0%
(1.6%)
(26.3%)
9.2%
Telefónica, S.A. logo
Telefónica, S.A.TEF
3.4%
1.7%
(78.3%)
(0.1%)
Charter Communications, Inc. logo
Charter Communications, Inc.CHTR
2.3%
0.9%
16.3%
9.2%

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FAQ

What is Verizon Communications Inc.'s discount rate as of Mar 07, 2025?

As of Mar 07, 2025, Verizon Communications Inc.'s discount rate is 4.39%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Verizon Communications Inc.'s capital structure and risk profile.

What is Verizon Communications Inc.'s weighted average cost of capital (WACC)?

Verizon Communications Inc.'s WACC as of Mar 07, 2025, is 4.39%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Verizon Communications Inc.'s cost of equity?

Verizon Communications Inc.'s cost of equity is 7.5%, as of Mar 07, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.