Verizon Communications Inc

VZ: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$73.00	Tnvyhdy	Zfpgvtz

Verizon: The Frontier Acquisition Provides a Small Strategic Benefit at a Full Price

Michael Hodel

Sep 5, 2024

Verizon will acquire Frontier Communications in an all-cash transaction at $38.50 per share, valuing Frontier at $20 billion with the assumption of debt. We are relieved that Verizon didn’t use its shares, which we believe are undervalued, or pay a huge premium on top of the jump in Frontier’s shares on Sept. 4. We are leaving our Verizon fair value estimate at $53.

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