Is IDT Corp. overvalued or undervalued?

As of 5 June 2025, IDT Corp. has moved from a fair to an attractive valuation grade, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 19, a PEG ratio of 0.15, and a dividend yield of 28.47%. These figures suggest that the stock is trading at a lower valuation relative to its growth potential and offers a significant return through dividends.
In comparison to its peers, IDT Corp. stands out with a more favorable P/E ratio of 18.33 when contrasted with Lumen Technologies, Inc., which has a negative P/E ratio, and Liberty Latin America Ltd., also showing negative earnings. The EV to EBITDA ratio for IDT is 12.45, which is competitive within its industry, further supporting the argument for its undervaluation. Notably, IDT Corp. has outperformed the S&P 500 significantly over various periods, including a 39.04% return year-to-date compared to the S&P 500's 2.44%, reinforcing the attractiveness of its current valuation.