Is United States Cellular Corp. overvalued or undervalued?

As of 1 November 2024, the valuation grade for United States Cellular Corp. has moved from fair to risky, indicating a shift towards overvaluation concerns. The company appears to be overvalued based on several key metrics, including a P/E ratio of 54, which is significantly higher than the peer average of approximately 41.99, and an EV to EBITDA ratio of 62.10, compared to the peer average of 8.24. Additionally, the PEG ratio stands at 0.92, suggesting that growth expectations may not justify the current price.
In comparison to its peers, Liberty Broadband Corp. has a more attractive P/E ratio of 7.24, while Telephone & Data Systems, Inc. has a P/E of 50.98, both indicating a more favorable valuation environment. The recent stock performance shows that United States Cellular Corp. has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -22.32% compared to the S&P 500's 12.22%, reinforcing the notion that the stock may be overvalued in the current market context.