In this article, we’ll look at Sprint’s (S) valuation following its results for the second quarter fiscal 2018. As of November 5, Sprint’s market cap is $25.6 billion, making it the fourth-largest US mobile carrier in terms of market cap.
Short interest ratio
On November 5, Sprint stock’s short interest as a percentage of its float (or short interest ratio) was ~16%. A short interest ratio of more than 40% signifies that traders and investors foresee a correction in a stock’s price.
Sprint’s valuation metrics
On November 5, Sprint had a trailing-12-month EV-to-EBITDA (enterprise value-to-EBITDA) multiple of ~4.8x compared to the multiples of its closest peers. T-Mobile, AT&T, and Verizon had trailing-12-month EV-to-EBITDA multiples of ~7.7x, ~7.5x, and ~7.5x, respectively.
Sprint expects its EV-to-EBITDA for fiscal 2018, which will end in March 2019, to be ~4.6x. It expects its EV-to-EBITDA multiple to be ~4.4x in fiscal 2019.