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Verizon Communications (VZ) has put a fresh spotlight on its balance sheet by planning to redeem $1.25b of 4.329% notes due 2028 next month. That move gives investors new information on its capital structure.

See our latest analysis for Verizon Communications.

Over the past year Verizon Communications has seen firm positive momentum, with a year to date share price return of 22.04% and a 1 year total shareholder return of 18.87% at a share price of US$49.45. The planned 2028 note redemption and recent long dated fixed income offerings give investors more context on how management is shaping the company's risk profile.

If this Verizon Communications update has you thinking about other opportunities, it could be a good time to broaden your watchlist with 39 power grid technology and infrastructure stocks

After a 22.0% year to date move and fresh activity on its debt stack, Verizon Communications now trades only slightly below the average analyst target but far below some intrinsic value estimates. Where does fair value really land in that spread?

On the most followed narrative, Verizon Communications has a fair value of $50.50 versus the recent share price of $49.45. That small gap sits alongside much larger intrinsic value estimates from other models.

Verizon, for instance, had been on my wish list for a very long time, but I kept putting it off due to conflicting reports about the company. At the time (2023), I was able to buy it for approximately $31. Eventually, I did purchase it this week (May 5, 2026) at $47.50 because the company is showing strong figures, including for the coming years. I bought a very small batch, 5 shares. And yes, the psychology of the stock market, if I buy, it drops! I'll wait and see for now, and if it drops further later, I'll just buy another small amount to maintain the average purchase price. This purchasing method has already saved me a lot of money over the past few years. My goal is to invest a maximum of $5,000 within one to two years. That brings me to 50 companies in which I have invested, with a current portfolio value of $200,000, which has yielded a return of over 15% per year over the past 5 years, partly due to reinvesting all dividends.

Curious what sits behind that $50.50 fair value for Verizon Communications. The narrative leans heavily on revenue growth, profit margins, and a future earnings multiple that points to a very specific long term return profile.

Result: Fair Value of $50.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, investors still need to watch Verizon Communications for pressure on future earnings assumptions and any deterioration in balance sheet flexibility that could challenge this narrative.

Find out about the key risks to this Verizon Communications narrative.

Given the mix of optimism and concern around Verizon Communications, it makes sense to move quickly and check the underlying data yourself. To see the full balance of potential upside and key watchpoints, go through the 3 key rewards and 2 important warning signs.

If you are serious about building a stronger portfolio, do not stop with Verizon Communications. Use the Simply Wall St Screener today to uncover fresh, data driven ideas.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include VZ.

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