uploads/2019/04/Telecom-1Q19-Market-Capitalization-5-1.png

What Does Verizon’s Current Valuation Indicate?

By

Updated

Forward PE

In this article, we’ll have a look at how Verizon (VZ) is valued ahead of its first-quarter earnings results. On April 15, Verizon’s forward PE multiple was 12.48x. The forward PE multiple is calculated based on analysts’ estimates for a company’s earnings for the next 12 months.

The forward PE multiples of other telecommunications companies T-Mobile (TMUS), AT&T (T), and Sprint (S) were 17.81x, 8.91x, and 137.78x, respectively.

Article continues below advertisement

Forward EV-to-EBITDA

On April 15, Verizon was trading at a forward EV-to-EBITDA multiple of 7.26x. The forward EV-to-EBITDA ratio is calculated based on analysts’ estimates for a company’s EBITDA for the next 12 months. The forward EV-to-EBITDA ratios of other telecommunications giants T-Mobile, AT&T, and Sprint were 6.90x, 6.84x, and 4.38x, respectively.

Verizon’s scale

At the end of yesterday’s trading session, Verizon was the largest US mobile operator by market cap at $242.6 billion, followed by AT&T at $233.3 billion, T-Mobile at $62.7 billion, and Sprint at $24.0 billion.

Advertisement

More From Market Realist