Frontier’s Valuation Multiple Compared to Its Peers

As of May 16, Frontier Communications (FTR) had a market capitalization of $0.21 billion. CenturyLink (CTL), Charter Communications (CHTR), and Comcast (CMCSA) have market capitalizations of $11.61 billion, $85.98 billion, and $196.03 billion, respectively.

As of May 16, Frontier Communications stock’s short interest as a percentage of float or short interest ratio was ~53.97%. When a stock’s short interest ratio is higher than 40%, it indicates that investors and traders expect the stock’s price to fall.

On May 16, Frontier Communications had a trailing 12-month EV-to-EBITDA multiple of ~4.96x—compared to its peers. CenturyLink, Charter Communications, and Comcast had trailing 12-month EV-to-EBITDA multiples of ~4.84x, ~10.47x, and ~9.78x, respectively.

Frontier anticipates its EV-to-EBITDA in 2019 to be ~4.92x, while in 2020, the multiple is anticipated to be ~5.16x.

In the trading session on May 16, Frontier Communications stock closed at $2.02, which is near its lower Bollinger Band level of $1.78. The level suggests that Frontier Communications stock was oversold.