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Verizon Communications (VZ) Plans $1.75b Note Redemption, Is The Stock Now Fairly Valued?

Simply Wall St · 2d ago

Verizon Communications (VZ) has put its balance sheet in focus by announcing plans to redeem in full US$1.75 billion of 4.125% notes due March 16, 2027, on December 23, 2026.

Recent price action has been constructive for Verizon Communications, with a 1-month share price return of 11.2% and a year-to-date share price gain of 14.3%. The 1-year total shareholder return of 21.4% points to building momentum around its debt reduction moves and network growth updates.

Scan how Verizon Communications' debt cleanup and network investments compare with peers by jumping into our curated list of 30 resilient stocks with low risk scores.

After a sharp rebound and a clearer plan to slim down its debt, Verizon Communications now sits at an interesting crossroads. Is most of the easy upside already in the rearview mirror, or does valuation still leave meaningful room ahead?

Most Popular Narrative: 8% Undervalued

Silvester values Verizon Communications at $50.50 per share, which sits above the recent close at $46.31 and frames the stock as modestly undervalued. According to Silvester, an investor in the Simply Wall St Community who wrote the narrative, that gap ties directly to balance sheet discipline and income potential.

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! My goal is to invest a maximum of $5,000 within one to two years. That brings me to 50 companies in which I have invested, with a current portfolio value of $200,000, which has yielded a return of over 15% per year over the past 5 years, partly due to reinvesting all dividends.

See why 46 investors see Verizon Communications as 8% undervalued.

Result: Fair Value of $50.50 (UNDERVALUED)

Still, Verizon Communications faces pressure if revenue growth softens or if network investment needs stay high, which could tighten cash flows and challenge the view that the stock is undervalued.

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

Next Steps

Mixed signals on Verizon Communications and its valuation story can create urgency, which is exactly when taking a closer look helps most. You can weigh both the potential upside and the issues raised by other investors by checking the 4 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Verizon Communications?

If Verizon Communications has your attention, do not stop there. Cast a wider net and line up fresh opportunities that fit your own risk and income goals.