VZ PEG Ratio Analysis

The PEG ratio (price-to-earnings divided by earnings growth rate) of 3.03x means that for each unit of expected earnings growth, investors are paying over three times the stock’s current earnings, indicating a premium valuation relative to growth expectations.

This is well above the sector median of 0.97x, placing VZ in the 82nd percentile among its peers—meaning it is more expensive on a growth-adjusted basis than the majority of comparable companies. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 7.3% from the prior quarter’s 3.27x, suggesting the premium has recently narrowed. A high PEG ratio combined with a declining trend points to a potential opportunity if the drop reflects improving growth forecasts, yet it also signals that the stock remains expensive relative to peers, which carries elevated risk if growth disappoints. This metric supports the overall NEUTRAL verdict: the elevated level is a negative signal, but the recent decline tempers that concern, leaving the risk-reward balanced.

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