Telecommunication Sector

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Presentation transcript:

Telecommunication Sector Joy Leng Kevin Min 04/18/2017

Agenda Sector Overview Verizon AT&T T-Mobile Recommendation

Sector Overview Sector Overview Verizon AT&T T-Mobile Recommendation

S&P 500 SIM Telecom Sector Market Cap: S5TELS Market Cap: 489 B (03/24/2017) 2.42% of S&P 500 SIM Securities Value: $10,733,155.78 2.73% of SIM Sector Overview Verizon AT&T T-Mobile Recommendation

Companies owned in portfolio Sector Overview Verizon AT&T T-Mobile Recommendation

Valuation Ratios Sector Overview Verizon AT&T T-Mobile Recommendation

Verizon is the #1 wireless phone service in the US and the #2 US telecom services provider overall. The company's core business lines are Verizon Wireless (79.1% of total revenue), serving about 113 million retail connections, and Verizon's wireline unit (20.9%), with more than 18 million voice connections. The company employs 162,000 employees and had revenue of $125.98 billion in 2016. Verizon comprises 42% of the Telecom sector. Sector Overview Verizon AT&T T-Mobile Recommendation

52 Week Moving Average Sector Overview Verizon AT&T T-Mobile Recommendation

Valuation Ratios Sector Overview Verizon AT&T T-Mobile Recommendation

Risk: Acquisition Delay AT&T Inc. is an American major communications holding company. Provide telecommunications and digital entertainment services for consumers in the U.S., Mexico and Latin American. The company had revenue of $165 billion in 2016,  is the largest telecommunications company in the world by revenue. Risk: Acquisition Delay Sector Overview Verizon AT&T T-Mobile Recommendation

52 Week Moving Average Sector Overview Verizon AT&T T-Mobile Recommendation

Valuation

Multiple Analysis Sensitivity Analysis Sector Overview Verizon AT&T T-Mobile Recommendation

T-Mobile US is a major wireless network operator in the United States T-Mobile US is a major wireless network operator in the United States. The company has annual revenues of $37 billion in 2016 (16% growth). Sector Overview Verizon AT&T T-Mobile Recommendation

52 Week Moving Average Sector Overview Verizon AT&T T-Mobile Recommendation

Business Analysis Main Strategy The Un-­Carrier strategy Low Cost Operating Model Network Transformation Update Recent Issue: Merger Regulation changes Sector Overview Verizon AT&T T-Mobile Recommendation

Valuation Sector Overview Verizon AT&T T-Mobile Recommendation

Multiple Analysis Weighted Price Sector Overview Verizon AT&T T-Mobile Recommendation

Sensitivity Analysis $63.80-$73.46 Sector Overview Verizon AT&T T-Mobile Recommendation

Recommendation Sector Overview Verizon AT&T T-Mobile Recommendation

Telecommunication Services