Is Verizon Communications Inc. (VZ) Undervalued?
Based on the current stock price of $40.48 and a P/E ratio of 8.63,Verizon Communications Inc. has a PEG ratio of 4.07.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 4.07, VZ appears to be potentially overvalued relative to its growth rate of 2.12%.
Based on a PEG ratio of 0.97 (adjusted for dividends).
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How we analyzed VZ
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 8.63and dividing it by the annual growth rate of 2.12%.
PEG = 8.63 (P/E) ÷ 2.12 (Growth) = 4.07
Frequently Asked Questions about VZ
What is the current PEG Ratio for Verizon Communications Inc. (VZ)?+
The current PEG Ratio for Verizon Communications Inc. is 4.07. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is VZ stock undervalued right now?+
Based on the PEG ratio of 4.07, Verizon Communications 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 VZ?+
The PEGY ratio for Verizon Communications Inc. is 0.97. This metric accounts for dividend yield (6.82%), providing a more complete valuation picture.