In this part, we’ll look at Verizon’s (VZ) valuation after its fourth-quarter financial results. As of January 29, Verizon’s market capitalization was $220.2 billion, making it the second-largest US mobile operator in terms of market capitalization. In comparison, Sprint (S) had a market capitalization of $24.6 billion, AT&T’s (T) market capitalization was $223.4 billion, and T-Mobile’s (TMUS) market capitalization was $57.5 billion.
Verizon’s forward PE ratio
On January 29, Verizon was trading at a 12-month forward PE ratio of 11.35x. In contrast, AT&T, T-Mobile, and Sprint were trading at 12-month forward PE ratios of 8.59x, 16.46x, and 109.69x, respectively.
Verizon’s forward EV-to-EBITDA ratio
On January 29, Verizon was trading at a 12-month forward EV-to-EBITDA (enterprise value-to-earnings before interest, tax, depreciation, and amortization) ratio of 6.82x. In contrast, AT&T, T-Mobile, and Sprint were trading at 12-month forward EV-to-EBITDA ratios of 6.57x, 6.62x, and 4.30x, respectively.
As of January 29, Verizon’s 14-day MACD (moving average convergence divergence) is -1.97. T-Mobile’s 14-day MACD is 0.33, AT&T’s is 0.04, and Sprint’s is -0.07. A stock’s MACD marks the difference between its long-term and short-term moving averages. Verizon’s negative MACD number denotes a downward trading trend.