A Look at AT&T’s Valuation before Its 3Q17 Results
As of October 9, 2017, AT&T’s (T) market capitalization was ~$235.2 billion, making it the largest US wireless carrier in terms of market capitalization. By comparison, Verizon (VZ) had a market capitalization of ~$200.1 billion, T-Mobile’s (TMUS) was ~$51.2 billion, and Sprint’s (S) was ~$29.3 billion.
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In the October 9, 2017, trading session, AT&T stock closed at $38.30, which is near its Bollinger Band mid-range level of $38.32. That indicates that AT&T stock is neither overbought nor oversold.
Short interest ratio
As of October 9, 2017, AT&T’s short interest ratio (or short interest as a percentage of its float) was ~9.0%. Generally, when a stock’s short interest ratio is above 40.0%, it implies that investors and traders foresee a fall in the price of the stock.
AT&T’s valuation metrics
As of October 9, 2017, AT&T was trading at a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 6.63x. In comparison, Sprint, Verizon, and T-Mobile have forward EV-to-EBITDA multiples of 5.28x, 6.86x, and 6.96x, respectively.
As of October 9, 2017, AT&T was trading at a forward PE (price-to-earnings) multiple of 12.80x. Sprint, Verizon, and T-Mobile have forward PE multiples of 148.39x, 12.84x, and 23.61x, respectively.