Last Sunday, 45,000 Verizon (NYSE:VZ) workers went on strike opposing the large-scale concessions that the company is planning in order to cut costs for its wireline business, which has struggled in recent years. [1] Verizon’s woes come as welcomed news for competitors AT&T (NYSE:T) and Sprint (NYSE:S).
Verizon’s wireline business consists of FiOS Internet, FiOS TV, enterprise, home & small business landlines and pay phones. Our analysis shows that the company’s claims may be right as 80% value from our $40.60 price estimate for Verizon stock is derived solely from its wireless business while the rest comes from the wireline business. Most of this value comes from the Internet and FiOS TV services while the home and small business landline business contributes around 1.3% to our value.
Our $40.62 price estimate for Verizon stock is about 20% above market price.
See our complete analysis for Verizon stock here
Notes:- Verizon Landline Unit at Heart of Strike, New York Times report, August 10th, 2011 [↩]
