Latest Ratios: P/E Ratio 10.5x · EV/EBITDA 7.5x · 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 | $177.8B | $172.3B | $168.7B | $158.9B | $165.6B | $215.6B | $243.3B | $254.2B | $232.3B | $216.4B | $218.1B |
| Enterprise Value | $359.4B | $353.9B | $332.8B | $331.8B | $339.4B | $390.6B | $371.7B | $384.7B | $342.6B | $331.4B | $323.3B |
| P/E Ratio → | 10.49 | 10.03 | 9.64 | 13.71 | 7.79 | 9.77 | 13.66 | 13.20 | 14.95 | 7.19 | 16.63 |
| P/S Ratio | 1.29 | 1.25 | 1.25 | 1.19 | 1.21 | 1.61 | 1.90 | 1.93 | 1.78 | 1.72 | 1.73 |
| P/B Ratio | 1.70 | 1.63 | 1.68 | 1.69 | 1.79 | 2.59 | 3.51 | 4.05 | 4.25 | 4.84 | 9.08 |
| P/FCF | 8.84 | 8.56 | 8.91 | 8.49 | 15.93 | — | 11.34 | 15.03 | 14.29 | 33.36 | 53.25 |
| P/OCF | 4.79 | 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 | 7.55 | 7.43 | 6.86 | 7.14 | 7.13 | 8.11 | 7.98 | 8.06 | 7.23 | 7.62 | 7.73 |
| EV / EBIT | 12.28 | 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 |
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 | — | 9.02 | 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 |
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 | 6.4% | 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 | 9.5% | 10.0% | 10.4% | 7.3% | 12.8% | 10.2% | 7.3% | 7.6% | 6.7% | 13.9% | 6.0% |
| FCF Yield | 11.3% | 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 | 6.4% | 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 |
High debt service burden
According to current market data, Verizon trades at a forward P/E of 9.40, which, when compared to the broader sector, suggests that investors are pricing in limited long-term growth prospects despite the company's dominant position in the domestic telecommunications market and its consistent dividend yield.
The current valuation multiple appears to reflect a market skepticism regarding the company's ability to drive meaningful top-line expansion through its 5G and Fios initiatives. Investors should monitor whether the current P/FCF of 9.66 provides a sufficient margin of safety given the persistent capital intensity required to maintain network parity.
Based on reported financial figures, Verizon's ROIC has remained suppressed, hovering near 2.1% in 2026Q1, which indicates that the massive capital outlays required for spectrum and fiber infrastructure are currently failing to generate returns that exceed the company's estimated cost of capital.
The persistent gap between invested capital and returns suggests that the company is in a long-term cycle of asset-heavy reinvestment. This trend warrants further investigation into whether the 'One Fiber' initiative can eventually drive the efficiency gains necessary to improve these returns relative to historical performance.
As reported in recent quarterly filings, Verizon's cash conversion cycle has exhibited extreme volatility, swinging from 7 days in 2025Q1 to -194 days in 2025Q4, largely driven by significant fluctuations in accounts payable and the timing of equipment-related cash outflows.
The negative cash conversion cycle suggests that the company effectively utilizes supplier financing to manage its working capital, though the extreme quarterly variance implies that this is not a stable operational advantage. Analysts should be wary of interpreting these shifts as permanent improvements in underlying operational efficiency.
Based on the provided financial statements, Verizon's debt-to-EBITDA ratio reached 14.91 in 2026Q1, a figure that highlights the significant pressure exerted by the company's debt load on its ability to navigate a high-interest-rate environment while maintaining its dividend commitments.
The elevated leverage profile suggests that the company has limited room for balance sheet expansion, making it highly sensitive to any potential deterioration in cash flow from operations. Investors should monitor the interest coverage ratio, which has shown signs of tightening, as a key indicator of future refinancing risk.
The dividend yield is frequently misapplied as a proxy for investment safety, obscuring the reality that Verizon's payout is currently being sustained by significant debt issuance rather than consistent, organic free cash flow generation, as evidenced by the negative FCF margin observed in 2026Q1.
Relying solely on the dividend yield ignores the underlying capital intensity and the potential for future dividend sustainability to be challenged by debt service requirements. A more appropriate metric for this business model would be the FCF-to-dividend coverage ratio, which provides a clearer view of the company's ability to fund payouts from core operations.
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 10.5x. The historical average is 22.6x. This places it at the 21th percentile of its historical range.
Verizon Communications Inc.'s current EV/EBITDA is 7.5x. 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 10.5x. This is at the 21th 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 6.37% 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.