Verizon CommunicationsCHIX:BACD 49 ROE % is 19.55% as of Mar. 2026, which is 31% below its 10-year median of 28.52. GuruFocus rates CHIX:BACD with a GF Score™ of 49/100 and a GF Value™ of €37.86 (Fairly Valued). The stock has 3 warning signs investors should review. Among 349 Telecommunication Services companies, Verizon Communications ranks better than 73.07% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Telecom Services subindustry, Verizon Communications's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Verizon Communications's ROE % distribution charts can be found below:
* The bar in red indicates where Verizon Communications's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Verizon Communications (CHIX:BACD) has a ROE % of 19.55% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Verizon Communications and its competitors. This is 31% below median its historical median of 28.52. Over the past decade, Verizon Communications' ROE % has ranged from 12.65 to 91.74. According to the industry distribution chart, Verizon Communications ranks #94 out of 349 companies in the Telecommunication Services industry, placing it in the top 26.9%.
Is Verizon Communications' ROE % too high?
Verizon Communications' current ROE % of 19.55% is 31% below median its 10-year median of 28.52. Over the past 10 years, this metric has ranged from a low of 12.65 to a high of 91.74. The Telecommunication Services industry median ROE % is 7.41. Verizon Communications' value of 19.55% is 163.8% above this industry median. Based on the distribution chart, Verizon Communications ranks #94 out of 349 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Verizon Communications has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Verizon Communications' ROE % compare to TMUS and T?
According to the Telecommunication Services industry distribution chart, Verizon Communications ranks #94 out of 349 companies for ROE %. This puts Verizon Communications in the upper half of its industry. The industry median ROE % is 7.41. Verizon Communications' value of 19.55% is 163.8% above this benchmark. Historically, Verizon Communications' own ROE % has ranged from 12.65 to 91.74 over the past decade. While the company's 10-year median is 28.52 vs. the industry median of 7.41, Verizon Communications has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.41, based on 349 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Verizon Communications's current ROE % of 19.55% is 163.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Verizon Communications and its competitors. For the Telecommunication Services industry, the median ROE % is 7.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Verizon Communications's current ROE % is 19.55%, which is 31% below median its own 10-year median of 28.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verizon Communications stock overvalued right now?
Based on GuruFocus' analysis, Verizon Communications (CHIX:BACD) is currently considered Fairly Valued. The stock's GF Value™ is €37.86, compared to a current price of €40.70 — trading 7.5% above its estimated fair value. The current ROE % is 19.55%, which is 31% below median its 10-year median of 28.52 and 163.8% above the Telecommunication Services industry median of 7.41. Verizon Communications' overall GF Score™ is 49/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Verizon Communications (CHIX:BACD), the current ROE % is 19.55% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Verizon Communications (CHIX:BACD) Overvalued in 2026?
Based on GuruFocus' analysis, Verizon Communications stock appears to be overvalued.
The current stock price of €40.70 is trading 7.5% above its estimated GF Value™ of €37.86.
GuruFocus considers Verizon Communications to be Fairly Valued.
Key valuation signals for CHIX:BACD:
ROE %: 19.55% (31% below median its 10-year median of 28.52)
GF Value™: €37.86 vs. price of €40.70 (7.5% above fair value)
Industry Position: 163.8% above the Telecommunication Services median (#94 of 349)
No single metric tells the full story. See the CHIX:BACD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wireless services account for 75% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 94 million postpaid and 20 million prepaid phone customers via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast that reach about 30 million homes and businesses, including about 20 million served by the Fios fiber-optic network. Verizon closed its acquisition of Frontier Communications in January, adding networks that reach another 15 million locations, including 9 million with fiber. These networks serve about 11 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, using a mix of its own and other networks.
49GF Score
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