Chart in Focus: Verizon’s Valuation Metrics

On June 8, 2017, Verizon’s (VZ) market capitalization was $188.7 billion, making it the second-largest global telecom player in terms of market cap. The market cap figures for Verizon’s peers follow:

• Sprint (S): $33.8 billion
• AT&T (T): $236.9 billion
• T-Mobile (TMUS): $54.8 billion
• Charter Communications (CHTR): $93.3 billion

Verizon’s annual dividend yield was 5.0%. Dividend yield measures a company’s annual dividend per share with respect to its price per share. A company’s dividend yield reflects how much cash an investor receives for every dollar invested in a company’s equity.

At the end of the most recent quarter, Verizon’s short-term debt was $3.7 billion, and its long-term debt was $112.8 billion. Cumulatively, the company had total debt of $116.5 billion. Its total capital was $141.6 billion, and its ratio of total debt to total capital was 82%.

For the past 14 days, Verizon’s relative strength index (or RSI) was 68 compared to 74, 64, 50, and 68 recorded by Sprint, AT&T, T-Mobile, and Charter Communications, respectively, during the same period. Relative strength index measures the speed at which prices move.

On June 8, Verizon (VZ) stock was trading at $46.19. This price was 0.41% above its 20-day moving average of $46, ~1.7% below its 50-day moving average of $47, and ~3.8% below its 100-day moving average of $48.