What Frontier Communications’ Current Valuations Indicate
Frontier Communications’ scale
On September 7, 2017, AT&T (T) was the largest US telecom giant by market capitalization at ~$218.6 billion, followed by Verizon (VZ) at ~$188.5 billion. In the US wireline space, Frontier Communications’ (FTR) market capitalization reached ~$1.1 billion.
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On September 7, 2017, Frontier Communications (FTR) stock closed at $13.41, near its Bollinger Band midrange level of $13.63. This suggests that FTR stock is neither oversold nor overbought.
FTR’s forward EV-to-EBITDA valuation
On September 7, 2017, Frontier Communications stock was trading at a forward EV-to-EBITDA1 multiple of ~5.3x. Windstream and CenturyLink had similar EV-to-EBITDA multiples of ~5.4x and ~6.0x, respectively.
Short interest ratio
On September 7, 2017, Frontier Communications’ short interest as a percentage of its shares outstanding (or short interest ratio) was ~7.1%. Generally, when a stock’s short interest ratio is greater than 40%, it indicates that investors could anticipate a correction in the stock’s price.
- enterprise value to earnings before interest, tax, depreciation, and amortization ↩