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Is Verizon Communications (VZ) Cheap As New iPhone 18 Offers Test Its Valuation?

Simply Wall St · 1d ago

Verizon Communications (VZ) just tied fresh marketing around Apple’s iPhone 18 lineup to its Simplicity and myPlan offers, giving investors a new data point on how the carrier is competing for higher value subscribers.

Recent news has landed against a backdrop where Verizon Communications’ share price has climbed 23.32% year to date and delivered a 20.94% total shareholder return over the past twelve months, while a 79.51% three-year total shareholder return hints at momentum that long-term holders have already experienced, even as the latest product tie-ins and fiber deals shape how investors gauge future upside and risk.

Scan how Verizon Communications stacks up against other carriers and bandwidth players by reviewing the hand picked 39 power grid technology and infrastructure stocks that could also be riding similar connectivity and infrastructure themes.

Verizon Communications now trades only slightly below the average analyst target, yet appears to be at a far steeper intrinsic discount. After this strong run, is the market being sensibly cautious, or still underpricing it?

Most Popular Narrative: 100% Undervalued

Verizon Communications last closed at $49.97 against a narrative fair value of $50.50, so the gap is small on price but huge on the implied margin of safety according to Silvester. The narrative leans heavily on cash generation, modest growth assumptions and dividends to argue that the present quote does not yet reflect the full cash flow profile.

Verizon, for instance, had been on my wish list for a very long time, but I kept putting it off due to conflicting reports about the company. At the time (2023), I was able to buy it for approximately $31. Eventually, I did purchase it this week (May 5, 2026) at $47.50 because the company is showing strong figures, including for the coming years. I bought a very small batch, 5 shares. And yes, the psychology of the stock market, if I buy, it drops! I'll wait and see for now, and if it drops further later, I'll just buy another small amount to maintain the average purchase price. This purchasing method has already saved me a lot of money over the past few years!

Read the complete narrative..

The fair value in this narrative leans on steady revenue expansion, resilient profit margins and an earnings multiple that assumes more than a pure income story. Curious which specific growth and profitability inputs support a 100% undervaluation call on Verizon Communications without relying on aggressive blue sky assumptions.

Result: Fair Value of $50.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

Still, the Verizon Communications story can be knocked off course if consumer wireless demand weakens, or if heavy capital needs pressure cash generation and dividend flexibility.

Find out about the key risks to this Verizon Communications narrative.

Next Steps

Sentiment around Verizon Communications is mixed enough that it pays to look under the hood yourself, weigh the upside against the red flags, and then study the 3 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Verizon Communications?

Do not stop at one stock. Use fresh screeners to spot opportunities that fit your goals, then compare everything back to the Verizon Communications story.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.