Verizon

Methodology

Verizon's fair value calculation works reasonably well for a mature wireless carrier with stable earnings, though growth is constrained by market saturation and intense competition with AT&T and T-Mobile. The method captures Verizon's position as a cash-generative utility-like business, but investors should recognize that premium valuations are unlikely given the slow-growth nature of mature wireless markets. Fair value estimates are most reliable when emphasizing free cash flow and dividend sustainability rather than earnings growth potential.

Methodology

Verizon typically trades at low to moderate PEG ratios reflecting its position as a mature, slow-growth wireless carrier with limited subscriber expansion opportunities in saturated U.S. markets. The PEG framework has limited utility for Verizon because growth rates are minimal, making the company more suitable for valuation as a dividend-focused utility-like investment. Investors should compare Verizon's dividend yield and free cash flow generation to AT&T and other mature telecom operators rather than emphasizing PEG ratios.

Methodology

Verizon pays a substantial dividend that is central to the investment thesis, making PEGY far more relevant than standard PEG analysis for this mature wireless carrier. The high dividend yield reflects management's commitment to returning cash to shareholders given limited reinvestment needs in a mature market. For income-focused investors, PEGY captures Verizon's value proposition as a high-yielding telecom utility with modest growth but reliable cash generation to support distributions.