uploads///Telecom Q Market Capitalization

How Verizon’s Valuation Multiples Stack Up with Peers

By

Mar. 29 2019, Published 12:08 p.m. ET

Verizon’s valuations

On March 28, Verizon (VZ) was trading at a 12-month forward PE ratio of 12.59x. AT&T (T), T-Mobile (TMUS), and Sprint (S) had 12-month forward PE multiples of 8.64x, 17.06x, and 129.31x, respectively. A stock’s PE ratio tells us the amount investors are willing to pay for every dollar of a company’s earnings per share.

On March 28, Verizon was trading at a 12-month forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratio of 7.29x. T-Mobile, AT&T, and Sprint had 12-month forward EV-to-EBITDA multiples of 6.66x, 6.72x, and 4.31x, respectively.

Article continues below advertisement

Dividend yield

Verizon remains committed to paying dividends to its stockholders. Verizon’s dividend yield was 4.1% based on its closing price of $59.08 on March 28, while AT&T’s dividend yield was 6.6%. T-Mobile and Sprint don’t pay dividends.

Market capitalization

At the end of yesterday’s trading session, Verizon was the largest US wireless service provider by market capitalization at $244.1 billion, followed by AT&T at $225.9 billion, T-Mobile at $58.8 billion, and Sprint at $23.1 billion.

Article continues below advertisement

Bollinger Band

In the most recent trading session, Verizon’s stock price closed at $59.08, near its Bollinger Band mid-range level of $57.94, implying that the stock isn’t overbought or oversold.

MACD

Verizon’s 14-day MACD (moving average convergence divergence) is 1.56, and the positive figure indicates an upward trading trend for Verizon. A company’s MACD is calculated as the change between its long-term and short-term moving averages. In comparison, AT&T’s 14-day MACD is 0.50, Sprint’s is -0.21, and T-Mobile’s is -0.62.

Advertisement

More From Market Realist