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

As of 23 July 2025, T-Mobile US, Inc. has moved from an expensive to a very expensive valuation grade. The company is overvalued based on its current metrics, with a P/E ratio of 23, a Price to Book Value of 4.57, and an EV to EBITDA of 11.49. In comparison, AT&T, Inc. has a P/E of 14.62 and Verizon Communications, Inc. boasts a much lower P/E of 9.52, indicating that T-Mobile is priced significantly higher than its peers.
Despite a strong 1-year return of 21.43% compared to the S&P 500's 17.14%, the valuation metrics suggest that the stock is not justified at its current price level. The PEG ratio of 0.75 does provide some optimism regarding growth, but overall, the valuation appears excessive relative to industry standards.