How CenturyLink’s Valuation Stacks Up with Peers



CenturyLink’s scale

As of January 22, Verizon (VZ) was the largest US telecom player by market capitalization at $235.5 billion, followed by AT&T (T) at $222.6 billion. In the US wireline space, CenturyLink (CTL) had a market capitalization of $16.6 billion, as showcased in the below chart. Meanwhile, this metric for Windstream Holdings (WIN) and Frontier Communications (FTR) was $0.1 billion and $0.3 billion, respectively.

Article continues below advertisement

Bollinger Band

In the January 22 trading session, CenturyLink stock closed at $15.39, which is near its Bollinger Band mid-range level of $15.69, which suggests that CenturyLink stock is neither oversold nor overbought.

CenturyLink’s forward EV-to-EBITDA valuation

As of January 22, CenturyLink has estimated EV-to-EBITDA ratios of 5.83x and 5.84x, respectively, for fiscal 2019 and fiscal 2020. The forward EV-to-EBITDA ratios for Windstream and Frontier are 5.46x and 5.14x, respectively, in fiscal 2019.

Short interest ratio

As of January 22, CenturyLink stock’s short interest as a percentage of float (or short interest ratio) was ~8.31%. A stock’s short interest ratio of more than 40% indicates that investors and traders foresee a fall in the stock’s price.


More From Market Realist