Is AT&T, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for AT&T, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently overvalued, with a P/E ratio of 15, which is higher than its peer Verizon Communications, Inc. at 9.52, and an EV to EBITDA ratio of 7.39, also above Verizon's 6.57. Additionally, AT&T's Price to Book Value stands at 2.08, suggesting that the stock is trading at a premium compared to its book value.
In comparison to its peers, T-Mobile US, Inc. is also very expensive with a P/E of 22.17, while Verizon offers a more attractive valuation profile. Despite AT&T's strong YTD return of 28.24%, which outperformed the S&P 500's 12.22%, the overall valuation metrics indicate that the stock is not justified at its current price levels.