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Financial Analysis of Verizon Wireless - Essay Example

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Financial analysis of Verizon Wireless Executive Summary Verizon Wireless is an internet company that offers high-speed wireless internet across America, with widespread 3G coverage, and more limited, but still extensive 4G coverage. They perform well in the financial market, although they are overshadowed by their largest competitor…

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Financial Analysis of Verizon Wireless

The company has performed well in the financial market, showing solid growth from 2006 through to the present. Stock performance is a good indication of how the market rewards a company. The stock market performance of the company has varied substantially over the time period. The company’s data report looks at how $100 of stock would perform in the market from 2005 to the present day, with the dividends being reinvested. The value rose to $160 in 2007 before dropping to a little under $140. Stock value increased slightly in 2009, and in 2010 it reached $180. This provides an indication of how the stocks for the company have performed over the time period. The same report compared the company’s performance to that of the average for the top 500 companies in the American economy (S&P 500 Telecommunications Services Index and S&P 500 Stock Index). For both cases Verizon Wireless outperformed them, with the Telecom Services Index finishing at around $110, the Stock Index at $130 and Verizon Wireless at $180 in 2010. This indicates that Verizon Wireless consistently outperforms its competitors. The main competitors for Verizon Wireless are AT&T wireless, and Internet America wireless. ...
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