Verizon Communications Inc. (NYSE:VZ)

The analysis of the financial ratios over the examined periods reveals several notable trends and fluctuations in valuation metrics.

Price to Earnings (P/E) Ratio

The P/E ratio exhibited a gradual decline from 12.34 in the first quarter of 2021 down to a low point near 6.8 in mid-2023, demonstrating a consistent downward trend in market valuation relative to earnings over this interval. Subsequently, there was a pronounced and rapid increase, peaking at 17.78 by the end of 2024, indicating a significant revaluation or possibly improved market expectations. Following this peak, the ratio decreased again to approximately 8.55 by the third quarter of 2025, showing some market correction or earnings growth normalization.

Price to Operating Profit (P/OP) Ratio

This ratio generally mirrored the P/E ratio trend, with values declining from 7.78 in early 2021 to near 4.78 by mid-2023, indicating decreasing price levels relative to operating profits or an improvement in operating profit margins. A marked increase followed, reaching a peak around 7.97 at the end of 2024, before dropping again to 5.35 in late 2025. The similar pattern to the P/E suggests that changes in profitability and market valuation were aligned during this period.

Price to Sales (P/S) Ratio

The P/S ratio showed a consistent downward trend from 1.8 in early 2021 to about 1.06 in mid-2023, signifying a decrease in market price relative to sales. Thereafter, it gradually increased to roughly 1.3 by the end of 2024 and remained relatively stable around 1.23 towards 2025. This pattern suggests that sales growth or stabilization was less volatile compared to earnings and operating profits, with the market adjusting its valuation more moderately.

Price to Book Value (P/BV) Ratio

A downward movement was evident in the P/BV ratio from 3.27 at the start of 2021 to approximately 1.5 by mid-2023, indicating reduced market valuation relative to book equity. Following this dip, the ratio climbed back to around 1.81 near the end of 2024, subsequently decreasing again towards 1.61 by late 2025. The fluctuations may reflect shifts in investor sentiment regarding the company’s net asset value or changes in book equity itself.

Overall, the financial ratios portray a period of declining valuations across earnings, operating profits, sales, and book value metrics from 2021 through mid-2023, suggesting either improved financial performance or market price adjustments. The subsequent sharp increases in late 2023 through 2024 imply a phase of heightened investor optimism or re-rating of the company's prospects. The recurring downward corrections in 2025 indicate a rebalancing or stabilization of valuations after this period of fluctuation.

The share price exhibited a general downward trend from early 2021 through mid-2023, declining from a high of $56.32 to a low near $34.03. During late 2023 and the first half of 2024, the price showed some recovery, rising to approximately $41.38 by September 2024. However, this was followed by a slight decline and some volatility through to the third quarter of 2025, ending near $40.21. Overall, the share price experienced notable fluctuations with an initial decrease followed by moderate stabilization and modest recovery in recent quarters.

Earnings per share (EPS) initially increased from $4.56 in the first quarter of 2021 to a peak near $5.32 in the third quarter of 2021. Following this peak, EPS showed fluctuations but remained generally around the $5.0 level until the end of 2023, when a sharp decline occurred — dropping as low as $2.33 by the third quarter of 2024. After this trough, EPS rebounded strongly, climbing back above $4.0 by the first quarter of 2025 and continuing to increase through the following quarters. This pattern indicates temporary earnings pressure in late 2023 and early 2024, followed by a recovery phase.

The price-to-earnings (P/E) ratio showed a declining trend from 12.34 at the beginning of 2021 to approximately 6.8 by the second quarter of 2023, reflecting either increasing earnings relative to share price or decreasing market valuation per unit of earnings. Subsequently, the P/E ratio surged to a peak around 17.78 by the third quarter of 2024, coinciding with the period of lower EPS and rising share price, suggesting that shares were valued more expensively relative to earnings during this time. Following this peak, the P/E declined sharply back to values near 9 by mid-2025, consistent with the EPS recovery and moderate share price decrease.

Trend Summary

Share price declined significantly through mid-2023, then partially recovered and stabilized with moderate fluctuations.

EPS peaked in late 2021, maintained a generally stable level before a sharp drop in late 2023, and then showed a notable rebound in 2024 and 2025.

The P/E ratio decreased through mid-2023, spiked sharply during the EPS decline period, and then normalized as earnings recovered.

These dynamics suggest that the company experienced a period of earnings pressure or market uncertainty around late 2023 and early 2024, reflected in reduced EPS and elevated P/E ratios. The subsequent recovery of earnings and normalization of valuation multiples indicate a return to more stable operating performance and market expectations in the latest periods.

Share Price Trends

The share price exhibited a general declining trend from March 2021 through September 2022, falling from $56.32 to a low point of $36.43. This downward momentum slightly reversed from the end of 2022 into early 2023, fluctuating around the $34 to $40 range. In the subsequent quarters from March 2024 to June 2025, the share price stabilized and showed modest recovery, peaking at approximately $43.08 in June 2025 before slightly decreasing again to $40.21 by September 2025.

Operating Profit Per Share (OPPS)

Operating profit per share remained relatively stable in the earlier periods, hovering around $7.2 to $7.7 from March 2021 through September 2022. A notable decrease occurred in December 2023, dropping sharply to $5.44, followed by minor volatility around the $5.2 to $5.6 range until September 2024. Starting December 2024, OPPS demonstrated a recovery trend, climbing steadily back to $7.51 by September 2025, nearly reaching prior levels observed in earlier years.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio showed an initial decline from 7.78 in March 2021 to a low of 4.78 by June 2023, reflecting a faster decrease in share price relative to operating profit per share during this time. A significant spike was observed in December 2023, where the ratio surged to 7.3, indicating a disproportionate drop in OPPS compared to share price. From then on, the ratio fluctuated between 5.35 and just under 8, experiencing a downward trend towards mid-2025 before a final decrease to 5.35 by September 2025.

Overall Analysis

Over the examined periods, the company experienced multiple phases of financial fluctuation. Share price and operating profit per share both showed declines during the middle quarters but recovered moderately in later periods. The volatility in the P/OP ratio, especially the spike observed in late 2023, suggests periods of market price adjustment relative to earnings performance. The alignment of share price recovery and OPPS improvement towards the end of the timeline indicates a positive outlook on operational profitability and market valuation stabilization.

Share Price

The share price exhibited a declining trend from March 2021 through the third quarter of 2022, falling from $56.32 to $36.43. Following this period, it experienced some recovery and volatility, increasing to $40.01 by the end of 2022, then fluctuating around the high 30s into 2023. Further modest growth was observed from early 2024, reaching a peak of $43.08 in the third quarter of 2025, before slightly dropping to $40.21 in the last quarter observed.

Sales Per Share

Sales per share remained relatively stable throughout the examined periods, ranging narrowly between $31.29 and $32.61. Minor fluctuations occurred but no significant upward or downward trends were evident, indicating consistent revenue generation relative to shares outstanding.

Price-to-Sales (P/S) Ratio

The P/S ratio mirrored the share price trend with an initial decline from 1.8 in early 2021 to a low of 1.06 in mid-2023. This ratio then showed a recovery trend, rising to 1.33 by the third quarter of 2025 before a slight dip to 1.23 by the final quarter. The fluctuations in P/S ratio suggest changing market perceptions of the company's valuation relative to its sales, with lower values indicating periods when the stock was potentially undervalued relative to sales and vice versa.

Overall Analysis

Overall, the data indicates a period of share price depreciation and declining valuation multiples through mid-2022 to mid-2023, followed by a period of partial recovery and stabilization. Sales per share provided a stable earnings base, suggesting consistent operational performance despite market fluctuations in share price and valuation multiples. The rebound in P/S ratio alongside improving share price in later periods points to a restored investor confidence or improved market conditions impacting the company's valuation positively.

The share price exhibits notable fluctuations across the observed periods. Initially, it declines from a high level, reaching a low point around the middle of 2023. Subsequently, the share price shows a moderate recovery, climbing steadily toward late 2024 and early 2025, though not fully regaining its earlier peak values. This pattern indicates some volatility with phases of both bearish and bullish market sentiment.

Regarding the book value per share (BVPS), there is a consistent upward trajectory over time. The BVPS gradually increases each quarter, reflecting ongoing growth in the company’s net asset value on a per-share basis. This trend points to a strengthening equity base, suggesting sustained accumulation of retained earnings or other equity components.

The price-to-book value (P/BV) ratio declines significantly from early 2021 through 2023, reaching its minimum around mid-2023, before slightly rebounding in the subsequent periods. The reduction in this ratio is aligned with the falling share price and the steadily rising BVPS, indicating that the market valuation relative to book value has become more conservative over time. Toward the end of the series, the P/BV ratio stabilizes around a lower range compared to the beginning, implying potentially more attractive valuation levels or changing investor perception of company risk or growth prospects.

Summary of trends:

The share price demonstrates an overall decline followed by a partial recovery, suggesting market sensitivity and varying investor confidence over the period.

The book value per share shows steady growth, indicating an improving underlying equity position.

The price-to-book ratio falls notably before stabilizing, reflecting a decline in market valuation multiples relative to the company’s net assets.

These combined factors suggest a period of valuation adjustment, where market prices have become more aligned with the company’s fundamental book value growth but have yet to reflect a consistent premium, possibly due to external market conditions or company-specific risks perceived by investors.