Vodafone, the U.K. wireless giant, confirmed Thursday it was back in discussions with Verizon Communications over their lucrative joint-venture Verizon Wireless. WSJ is reporting that Verizon Communications may be near a deal in the next week that could see it pay Vodafone $130 billion for Vodafone’s 45% stake in the carrier. –WSJ

This is a note to self and not an inducement to buy or sell.

Verizon is likely to finance 130 bil in half Verizon stock and half debts. That is a hefty 65 bil in debt.

The 45% stake, generates 12.87 bil in operating cash flow.

This makes the purchase at nearly 10 times operating cash flow. We have to remember this ratio as a yard stick for future purchase and sale requirement.

If Verizon is paying for the enterprise value then this is as close to EV/EBITDA as  possible. Telecoms are best purchase less ...