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Verizon Communications (NEOE:VZ) Cyclically Adjusted Price-to-FCF : 16.71 (As of May. 18, 2024)


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What is Verizon Communications Cyclically Adjusted Price-to-FCF?

As of today (2024-05-18), Verizon Communications's current share price is C$17.71. Verizon Communications's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was C$1.06. Verizon Communications's Cyclically Adjusted Price-to-FCF for today is 16.71.

The historical rank and industry rank for Verizon Communications's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

NEOE:VZ' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 9.5   Med: 12.25   Max: 18.7
Current: 16.76

During the past years, Verizon Communications's highest Cyclically Adjusted Price-to-FCF was 18.70. The lowest was 9.50. And the median was 12.25.

NEOE:VZ's Cyclically Adjusted Price-to-FCF is ranked worse than
62.23% of 188 companies
in the Telecommunication Services industry
Industry Median: 13.345 vs NEOE:VZ: 16.76

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Verizon Communications's adjusted free cash flow per share data for the three months ended in Mar. 2024 was C$0.725. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is C$1.06 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Verizon Communications Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Verizon Communications's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Verizon Communications Cyclically Adjusted Price-to-FCF Chart

Verizon Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.61 14.47 17.11 13.21 15.71

Verizon Communications Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.40 13.25 12.20 15.71 17.55

Competitive Comparison of Verizon Communications's Cyclically Adjusted Price-to-FCF

For the Telecom Services subindustry, Verizon Communications's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Verizon Communications's Cyclically Adjusted Price-to-FCF Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Verizon Communications's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Verizon Communications's Cyclically Adjusted Price-to-FCF falls into.



Verizon Communications Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Verizon Communications's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=17.71/1.06
=16.71

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Verizon Communications's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Verizon Communications's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.725/131.7762*131.7762
=0.725

Current CPI (Mar. 2024) = 131.7762.

Verizon Communications Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.851 100.560 1.115
201409 1.099 100.428 1.442
201412 0.801 99.070 1.065
201503 -0.934 99.621 -1.235
201506 1.249 100.684 1.635
201509 1.626 100.392 2.134
201512 1.756 99.792 2.319
201603 1.288 100.470 1.689
201606 0.434 101.688 0.562
201609 0.181 101.861 0.234
201612 -0.594 101.863 -0.768
201703 -0.618 102.862 -0.792
201706 1.258 103.349 1.604
201709 0.824 104.136 1.043
201712 0.550 104.011 0.697
201803 0.355 105.290 0.444
201806 2.002 106.317 2.481
201809 1.722 106.507 2.131
201812 1.084 105.998 1.348
201903 0.875 107.251 1.075
201906 1.593 108.070 1.942
201909 2.062 108.329 2.508
201912 0.888 108.420 1.079
202003 1.050 108.902 1.271
202006 2.875 108.767 3.483
202009 0.845 109.815 1.014
202012 1.586 109.897 1.902
202103 -12.012 111.754 -14.164
202106 1.778 114.631 2.044
202109 1.171 115.734 1.333
202112 0.424 117.630 0.475
202203 -0.252 121.301 -0.274
202206 1.748 125.017 1.843
202209 1.459 125.227 1.535
202212 0.292 125.222 0.307
202303 0.563 127.348 0.583
202306 1.618 128.729 1.656
202309 1.897 129.860 1.925
202312 0.044 129.419 0.045
202403 0.725 131.776 0.725

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Verizon Communications  (NEOE:VZ) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Verizon Communications Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Verizon Communications's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Verizon Communications (NEOE:VZ) Business Description

Address
1095 Avenue of the Americas, New York, NY, USA, 10036
Verizon Communications is primarily a wireless business (it provides about 70% of service revenue and nearly all operating income). It serves about 92 million postpaid and 22 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest U.S. wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 25 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks.