Is T-Mobile US, Inc. (TMUS) Undervalued?
Based on the current stock price of $201.00 and a P/E ratio of 19.38,T-Mobile US, Inc. has a PEG ratio of 2.86.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.86, TMUS appears to be potentially overvalued relative to its growth rate of 6.78%.
Based on a PEG ratio of 2.20 (adjusted for dividends).
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How we analyzed TMUS
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 19.38and dividing it by the annual growth rate of 6.78%.
PEG = 19.38 (P/E) ÷ 6.78 (Growth) = 2.86
Frequently Asked Questions about TMUS
What is the current PEG Ratio for T-Mobile US, Inc. (TMUS)?+
The current PEG Ratio for T-Mobile US, Inc. is 2.86. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is TMUS stock undervalued right now?+
Based on the PEG ratio of 2.86, T-Mobile US, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for TMUS?+
The PEGY ratio for T-Mobile US, Inc. is 2.20. This metric accounts for dividend yield (2.03%), providing a more complete valuation picture.