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What Sprint’s Valuations Indicate

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Deciphering Sprint’s comprehensive valuation

Sprint (S) has an EV (enterprise value) of ~$61.9 billion. This metric provides a more comprehensive measure of a company’s total value, and it’s used as an alternative to a company’s equity market capitalization valuation.

Peer companies Verizon (VZ), AT&T (T), T-Mobile (TMUS), and Windstream Holdings (WIN) have EVs of ~$29.5 billion, ~$35.1 billion, ~$78.5 billion, and ~$11.3 billion, respectively.

Sprint’s EV-to-adjusted-EBITDA (enterprise value to adjusted earnings before interest, tax, depreciation, and amortization) for the trailing 12 months is 6.25x. The EV-to-sales ratio for the trailing 12 months is 1.86x, while the expected EV-to-sales next year is 1.82x.

Sprint’s trailing-12-month EV-to-cashflow and trailing-12-month EV-to-free-cashflow ratios are 14.8x and 294.6x, respectively.

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Earnings and sales

The company reported EPS (earnings per share) of -$0.30, while EPS for the current period is forecasted to be -$0.05.

The company posted total sales of $33,347, a growth of 4% annually. Sales for this year are expected to expand from ~$33,872.7 this year to ~$33,907.9 next year.

Inside Sprint’s price and valuation multiples

Sprint’s current book value per share of ~$4.7 compares with expected book value per share of ~$4.8. Sprint stock is trading at a price-to-book value of 1.56x.

The company’s price-to-sales ratio is 0.88x in comparison to the estimated price-to-sales ratio of 0.87x.

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