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Verizon Communications (NYSE:VZ) GF Value Rank

: 6 (As of Today)
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Verizon Communications has the GF Value Rank of 6.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Telecom Services subindustry, Verizon Communications's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Telecommunication Services industry and Communication Services sector, Verizon Communications's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Verizon Communications's GF Value Rank falls into.



Verizon Communications GF Value Rank Related Terms

Thank you for viewing the detailed overview of Verizon Communications's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Verizon Communications (NYSE: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.
Executives
Craig L. Silliman officer: EVP of PubPolicy & Gen Counsel 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Samantha Hammock officer: EVP & Chief HR Officer 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Joseph J. Russo officer: EVP&Pres-Global Networks&Tech VERIZON COMMUNICATIONS INC., 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Mary-lee Stillwell officer: SVP and Controller 804 CARNEGIE CENTER, PRINCETON NJ 08540
Kyle Malady officer: EVP & Chief Technology Officer 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Vittorio Colao director 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Vandana Venkatesh officer: EVP and General Counsel VERIZON COMMUNICATIONS INC., 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Sowmyanarayan Sampath officer: EVP and Group CEO-VZ Business 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Tami A. Erwin officer: EVP and Group CEO-VZ Business 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Hans Erik Vestberg director, officer: Chairman and CEO 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Manon Brouillette officer: EVP and Group CEO-VZ Consumer 40 AVENUE SPRINGGROVE, MONTREAL Z4 H3C 4M8
Carol B Tome director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Kumara Guru Gowrappan officer: EVP and Group CEO-VZ Media 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Laxman Narasimhan director PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Shellye L Archambeau director 1095 AVENUE OF THE AMERICAS, 8TH FLOOR, NEW YORK NY 10036