Financial statement analysis and common stock valuation

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of Verizon Communications Inc. during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Verizon Communications Inc. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Verizon Communications Inc..

Analysis of Solvency Ratios
Quarterly Data

Examines Verizon Communications Inc. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage
• Interest Coverage

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by Verizon Communications Inc..

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Common Stock Valuation Ratios

Relative valuation technique determine the value of Verizon Communications Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Enterprise Value to EBITDA (EV/EBITDA)

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Analysis of Reportable Segments

Verizon Communications Inc. operates in 2 segments: Verizon Consumer Group and Verizon Business Group.

• Segment Profit Margin
• Operating revenues
• Operating income