Verizon Communications Inc.

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Drexel Hamilton	Barry M. Sine	bsine@drexelhamilton.com
Cowen & Company	Colby Synesael	colby.synesael@cowen.com
FBR Capital Markets & Co	David Dixon	ddixon@fbr.com
Raymond James	Frank G. Louthan IV	frank.louthan@raymondjames.com
William Blair	James D. Breen	jbreen@williamblair.com
DA Davidson	James Moorman	jmoorman@dadco.com
Buckingham Research	James Ratcliffe	jratcliffe@buckresearch.com
Scotiabank GBM	Jeffrey Fan	jeff.fan@scotiabank.com
Nomura Research	Jeffrey Kvaal	jeffrey.kvaal@nomura.com
Wells Fargo Securities	Jennifer M. Fritzsche	jennifer.fritzsche@wellsfargo.com
RBC Capital Markets	Jonathan Atkin	jonathan.atkin@rbccm.com
Evercore ISI	Jonathan Schildkraut	schildkraut@evercoreisi.com
Deutsche Bank Research	Matthew Niknam	matthew.niknam@db.com
Pacific Crest Securities-KBCM	Michael G. Bowen	mbowen@pacific-crest.com
Jefferies	Mike McCormack	mmccormack@jefferies.com
Bernstein Research	Paul de Sa	paul.desa@bernstein.com
Oppenheimer	Timothy Horan	tim.horan@opco.com
BTIG	Walter Piecyk	wpiecyk@btig.com

Return to top of page

Primary Input Data

Return to top of page

Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	19,585	16,842	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	21,155	5,656	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	1,749	1,575	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	209,588	213,840	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	9.47%	7.88%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	20,961	20,180	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	105.56%	119.82%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	7.39%	6.32%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	5.91%	5.77%
Enterprise value	EV_Market	295,405	324,313	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	289,087	320,166
Long-Run Growth	g = IR x ROIC	10.00%	9.44%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	23.21%	20.57%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	34.40%	38.07%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

Return to top of page

Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	2.24	2.57	2.29%	3.31%	3.69%	4.85%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	6.34	7.75	2.29%	3.31%	3.69%	4.85%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	14.88	19.26	2.29%	3.31%	3.69%	4.85%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	13.96	57.34	2.29%	3.31%	3.69%	4.85%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	9.67	12.52	2.29%	3.31%	3.69%	4.85%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	1.41	1.52	2.29%	3.31%	3.69%	4.85%

Return to top of page