Verizon: Narrow Margin Of Safety Per Graham P/E And Number

Summary:

• I was disappointed by the growth (or the lack) shown in Verizon’s Q3 2024 earnings report.
• As such, I reiterate my HOLD rating despite the attractive dividends and a single-digit P/E ratio.
• Moreover, VZ’s valuation is less appealing when adjusted for its tepid growth prospects.
• For example, the Graham P/E and Graham Number calculations indicate only a thin margin of safety of around ~10% at the current market prices.

VZ stock: previous thesis and Q3 earnings

My last coverage on Verizon stock (NYSE:VZ) was a preview of its FY Q3 2024 earnings report (“ER”). That article was titled “Verizon Q3 Preview: You Want Total Shareholder Yield, Not Dividend Yield” and was

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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