Is T-Mobile US, Inc. overvalued or undervalued?

As of 5 March 2025, T-Mobile US, Inc. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 23, an EV to EBITDA of 11.49, and a PEG ratio of 0.75, which suggests that while growth may be priced in, the valuation remains high relative to earnings.
In comparison to peers, T-Mobile's P/E ratio of 20.94 is significantly higher than AT&T, Inc. at 14.59 and Verizon Communications, Inc. at 9.40, indicating that T-Mobile is trading at a premium despite lower relative value. Additionally, T-Mobile's EV to EBITDA ratio of 10.60 also exceeds that of its peers, further supporting the conclusion of overvaluation. Despite a strong one-year return of 28.43%, which outperformed the S&P 500's 10.26%, the current valuation metrics suggest that investors may be paying too much for the stock at this time.