Is United States Cellular Corp. overvalued or undervalued?

As of 1 November 2024, the valuation grade for United States Cellular Corp. has moved from very expensive to risky. The company is currently considered overvalued. Key ratios indicate this, with a P/E ratio of 54, an EV to EBIT of 62.10, and a PEG ratio of 0.92. In comparison, peers such as Telephone & Data Systems, Inc. have a P/E of 49.58 and an EV to EBITDA of 7.51, suggesting that United States Cellular Corp. is trading at a premium relative to its peers.
Additionally, the company's return on capital employed (ROCE) stands at a mere 1.80%, and return on equity (ROE) is only 2.22%, both of which are significantly lower than desirable levels. While the stock has shown a strong one-year return of 15.39% compared to the S&P 500's 10.26%, the valuation metrics suggest that the current price may not be justified given the underlying financial performance.