Discounted Cash Flow

Verizon Communications Inc.

VZ · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $126.0b $13.1b $5.7b 10.4% $3.22
2017 $126.0b (0.0%) $30.1b (129.3%) $8.1b (42.5%) 23.9% (129.2%) $7.37 (128.9%)
2018 $130.9b (3.8%) $15.5b (-48.4%) $17.7b (119.4%) 11.9% (-50.3%) $3.76 (-49.0%)
2019 $131.9b (0.8%) $19.3b (24.1%) $17.8b (0.7%) 14.6% (23.1%) $4.66 (23.9%)
2020 $128.3b (-2.7%) $17.8b (-7.6%) $23.6b (32.4%) 13.9% (-5.0%) $4.30 (-7.7%)
2021 $133.6b (4.1%) $22.1b (24.0%) $19.3b (-18.3%) 16.5% (19.0%) $5.32 (23.7%)
2022 $136.8b (2.4%) $21.3b (-3.7%) $10.4b (-46.0%) 15.5% (-5.9%) $5.06 (-4.9%)
2023 $134.0b (-2.1%) $11.6b (-45.4%) $12.9b (24.1%) 8.7% (-44.2%) $2.76 (-45.5%)
2024 $134.8b (0.6%) $17.5b (50.7%) $18.9b (46.5%) 13.0% (49.8%) $4.15 (50.4%)
2025 $138.2b (2.5%) $17.2b (-1.9%) $19.7b (4.0%) 12.4% (-4.3%) $4.06 (-2.2%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model