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What’s Verizon’s Valuation before Its Q1 Results?

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Apr. 4 2019, Published 10:25 a.m. ET

Forward PE ratio

Let’s take a look at how Verizon (VZ) is valued before its first-quarter earnings. As of April 3, Verizon’s forward PE ratio was 12.52x. The forward PE ratio is calculated based on analysts’ estimates for the company’s earnings for the next 12 months. AT&T (T), T-Mobile (TMUS), and Sprint’s (S) forward PE ratios were 8.87x, 16.72x, and 123.67x.

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Forward EV-to-EBITDA multiple

On April 3, Verizon was trading at a forward EV-to-EBITDA multiple of 7.27x. The enterprise value includes a company’s net debt and market capitalization. The forward EV-to-EBITDA multiple is calculated based on analysts’ estimates for the company’s EBITDA for the next 12 months. AT&T, T-Mobile, and Sprint’s forward EV-to-EBITDA multiples were 6.82x, 6.60x, and 4.28x.

Verizon’s scale

At the end of the trading session on April 3, Verizon was the largest US wireless carrier by market capitalization at $243.3 billion followed by AT&T at $232.2 billion, T-Mobile at $58.7 billion, and Sprint at $22.8 billion.

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