A periodic structure consisting of alternating plane, parallel, isotropic, and homogeneous elastic layers can be replaced by a homogeneous, transversely isotropic material as far as its gross‐scale elastic behavior is concerned. The five elastic moduli of the equivalent transversely isotropic medium are accordingly expressed in terms of the elastic properties and the ratio of the thicknesses of the individual isotropic layers. Imposing the condition that the Lamé constants in the isotropic layers are positive, a number of inequalities are derived, showing limitations of the values the five elastic constants of the anisotropic medium can assume. The wave equation is derived from the stress‐strain relations and the equation of motion. It is shown that there are in general three characteristic velocities, all functions of the direction of the propagation. A graphical procedure is given for the derivation of these characteristic velocities from the five elastic moduli and the average density of the medium. A few numerical examples are presented in which the graphical procedure is applied. Examples are given of cases which are likely to be encountered in nature, as well as of cases which emphasize the peculiarities which may occur for a physically possible, but less likely, choice of properties of the constituent isotropic layers. The concept of a wave surface is briefly discussed. It is indicated that one branch of a wave surface may have cusps. Finally, a few remarks are made on the possible application of this theory to actual field problems.