TNEUTRAL

T PEG Ratio Analysis

2.44x

Updated 29h ago·SEC filings & market data

Key Takeaway

The PEG ratio (price-to-earnings divided by earnings growth rate) of 2.44x means the stock's price is 2.44 times higher than its expected annual earnings growth — a value above 1.0x typically indicates investors are paying a premium for future growth.

Sector Performance

78th percentile

T

2.44x

Sector Median

0.97x

Sector Avg

2.92x

Prior Period

3.16x(Apr 2026)

↑ Improving
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Deep Analysis

The PEG ratio (price-to-earnings divided by earnings growth rate) of 2.44x means the stock's price is 2.44 times higher than its expected annual earnings growth — a value above 1.0x typically indicates investors are paying a premium for future growth.

Compared to sector peers, this ratio is far above the sector median of 0.97x, placing it in the 78th percentile, meaning most peers have lower PEG ratios. Trend data are not available — the year-over-year change is N/A and the quarter-over-quarter change is N/A, so no directional shift can be assessed. The combination of a high PEG ratio and no trend information implies that without knowing whether the ratio is rising or falling, the elevated level alone points to above-average valuation risk relative to the sector. This elevated PEG ratio supports the overall NEUTRAL verdict — it neither clearly signals a buying opportunity nor an outright sell, but reinforces a cautious stance given the stock's premium pricing versus peers.

Frequently Asked Questions

What does the PEG Ratio tell investors about T?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

Who are T's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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T

2.44x

Sector Median

0.97x

Sector Avg

2.92x

How T's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.