Is Verizon Communications, Inc. overvalued or undervalued?

As of 25 October 2022, the valuation grade for Verizon Communications, Inc. moved from fair to very attractive, indicating a favorable shift in its valuation outlook. The company appears undervalued, particularly when considering its P/E ratio of 10, which is significantly lower than its peers like T-Mobile US, Inc. with a P/E of 22.17 and AT&T, Inc. at 14.62. Additionally, Verizon's EV to EBITDA stands at 6.65, compared to T-Mobile's 11.07, further emphasizing its relative undervaluation.
Verizon's PEG ratio of 1.02 suggests that the stock is reasonably priced relative to its growth expectations, while its dividend yield of 45.88% offers an attractive income opportunity for investors. Despite the recent stock performance, where Verizon's 1-year return of -0.48% lagged behind the S&P 500's 17.14%, the overall valuation metrics indicate that the stock is positioned well for potential upside.