On September 20, Verizon’s (VZ) market capitalization was ~$224.9 billion, making it the second-largest US mobile operator in terms of market cap. In comparison, Sprint (S) had a market capitalization of ~$26.0 billion. AT&T’s market capitalization was ~$245.3 billion, and T-Mobile’s (TMUS) market cap was ~$58.5 billion.
In the September 20 trading session, Verizon (VZ) stock closed at $53.95, which is near its Bollinger Band midrange level of $54.38. This suggests that Verizon stock is neither oversold nor overbought.
Verizon’s valuation metrics
Valuation metrics consist of earnings-based multiples and price-based multiples. On September 20, Verizon had a trailing-12-month EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of ~7.3x compared to the multiples of its closest rivals.
AT&T, T-Mobile, and Sprint had trailing-12-month EV-to-EBITDA multiples of ~8.7x, ~8.0x, and ~5.0x, respectively. Verizon expects its 2018 EV-to-EBITDA multiple to be ~7.1x. In 2019, its EV-to-EBITDA multiple is expected to be ~7.0x.
Verizon is currently trading at a PE (price-to-earnings) multiple of ~15.8x. This is lower than T-Mobile’s PE multiple of ~24.0x and AT&T’s PE multiple of ~18.2x. Verizon’s PE multiple is expected to be ~11.7x in 2018, and it’s expected to be ~11.5x in 2019.