Telephone and Data Systems

Telephone and Data Systems is an AMEX listed security that has been trading in a range between $39.32 and $71.60 over the past year. With 116,784,100 shares outstanding, a recent price of $70.81 gives a total market capitalization of $8,171,383,620. While there are certainly larger companies, Telephone and Data Systems has definitely earned its place in the pack. Last year, Telephone and Data Systems created $2.92 in earnings for every share outstanding.

Telephone and Data Systems is currently priced by the market at 24.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price over $50 a share and earnings per share in excess of $1 a share, Telephone and Data Systems could be an interesting value proposition.