On October 4, 2017, Verizon’s (VZ) market capitalization was ~$203.6 billion, making it the second-largest US telecom player in terms of market capitalization. In comparison, Sprint (S) had a market capitalization of ~$30.3 billion, AT&T’s (T) market capitalization was ~$242.5 billion, and T-Mobile’s (TMUS) market capitalization was ~$51.1 billion.
In the October 4 trading session, Verizon stock closed at $49.90, which is near its upper Bollinger Band level of $51.23. This suggests that Verizon stock is overbought.
Short interest ratio
On October 4, 2017, Verizon’s short interest ratio (or short interest as a percentage of its float) was ~3.1%. Usually, when a stock’s short interest ratio is higher than 40%, it implies that traders and investors foresee a correction in the stock’s price.
Verizon’s valuation metrics
On October 4, 2017, Verizon traded at a forward EV-to-EBITDA[1. enterprise value to earnings before interest, taxes, depreciation, and amortization] multiple of ~6.9x. In comparison, Sprint, AT&T, and T-Mobile had forward EV-to-EBITDA multiples of ~5.4x, ~6.8x, and ~7.0x, respectively.
On October 4, 2017, Verizon traded at a price-to-earnings (or PE) multiple of ~13.1x. On the same date, Sprint, AT&T, and T-Mobile had PE multiples of ~171.0x, ~13.2x, and ~23.5x, respectively.