Sprint’s scale

In this article, we’ll look at Sprint’s (S) valuation following its results for the third quarter of fiscal 2018. On February 4, Sprint’s market cap was $25.5 billion, making it the fourth-largest US mobile carrier in terms of market cap.

In comparison, on the same date, T-Mobile (TMUS) had a market cap of $58.9 billion, Verizon’s (VZ) market cap was $223.3 billion, and AT&T’s (T) market cap was $215.5 billion.

Gauging Changes to Sprint’s Valuation after Its Q3 2018 Results

Short interest ratio

On February 4, Sprint stock’s short interest as a percentage of its float (or its short interest ratio) was ~17.2%. A short interest ratio of greater than 40% suggests that traders and investors foresee a correction in a stock’s price.

Sprint’s valuation metrics

On February 4, Sprint had a trailing-12-month EV-to-EBITDA (enterprise value-to-EBITDA) multiple of ~4.69x compared to the multiples of its closest peers. T-Mobile, AT&T, and Verizon had trailing-12-month EV-to-EBITDA multiples of ~7.73x, ~6.91x, and ~7.38x, respectively.

Sprint expects its EV-to-EBITDA multiple in fiscal 2018 (which ends in March 2019) to be ~4.63x, while in fiscal 2019, it expects its EV-to-EBITDA multiple to be ~4.47x.

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