Markets

3 Key Sources of Value for Sprint

Sprint (NYSE:S) recently launched a marketing campaign to encourage customers to switch from other carriers to its network. While its competitors like AT&T (NYSE:T) and Verizon (NYSE:VZ) have been pacing ahead with healthy subscriber additions, Sprint has struggled. Recently the outlook has started to look better for Sprint, a result of the combination of its network improvement initiatives and better customer service. With Sprint beginning to recover from recent struggles, we present 3 key businesses that hold value for the company going forward.

Our price estimate for Sprint's stock stands at $5.84 , implying a premium to market price.

1) Mobile Internet - represents 46% of the company's stock value

Sprint sells data plans to its customers that include texting, internet surfing and data downloads. The company charges a monthly fee, either prepaid or postpaid, for offering these plans. The usage of data has surged in the recent past and is expected to continue its growth.

See the top forecasts for mobile internet

2) Mobile Plans & Phones -represents 34% of the company's stock value

Sprint sells voice plans and mobile phones to its customers. The voice plans are either sold on postpaid basis or prepaid. The company pays heavy subsidies to mobile phone manufacturers and therefore offers these products to its customers at low prices.

See the top forecasts for mobile plans & phones

3) Land Lines -represents 19% of the company's stock value

This business represents the voice and data communication services that are offered by Sprint to its customers over legacy fixed-lines. It also includes Sprint's IP based services including VoIP.

See the top forecasts for land lines

See our complete analysis for Sprint's stock here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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