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How Frontier’s Current Valuation Stacks Up with Peers

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Jun. 13 2019, Published 2:23 p.m. ET

Frontier’s scale

As of June 11, Frontier Communications (FTR) had a market capitalization of $0.2 billion. CenturyLink (CTL), Comcast (CMCSA), and Charter Communications (CHTR) have market capitalizations of $11.7 billion, $188.1 billion, and $88.0 billion, respectively.

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Short interest ratio

As of June 11, Frontier stock’s short interest as a percentage of float (or short interest ratio) was ~55.40%. A stock’s short interest ratio of over 40% suggests that investors and traders foresee a fall in the stock’s price.

Frontier’s EV-to-EBITDA valuation

On June 11, Frontier had a trailing-12-month EV-to-EBITDA multiple of ~4.94x. CenturyLink, Comcast, and Charter had trailing-12-month EV-to-EBITDA multiples of ~4.85x, ~9.53x, and ~10.59x, respectively. Frontier anticipates its EV-to-EBITDA in fiscal 2019 to be ~4.90x, while in fiscal 2020, the multiple is anticipated to be ~5.14x.

Bollinger Band

In the June 11 trading session, Frontier stock closed at $1.69, which is near its lower Bollinger Band level of $1.59. The level suggests that Frontier stock is oversold.

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