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Verizon Communications (XTER:BAC) PEG Ratio : 95.62 (As of Dec. 13, 2024)


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What is Verizon Communications PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Verizon Communications's PE Ratio without NRI is 9.56. Verizon Communications's 5-Year EBITDA growth rate is 0.10%. Therefore, Verizon Communications's PEG Ratio for today is 95.62.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Verizon Communications's PEG Ratio or its related term are showing as below:

XTER:BAC' s PEG Ratio Range Over the Past 10 Years
Min: 1.61   Med: 4.76   Max: 92.1
Current: 92.1


During the past 13 years, Verizon Communications's highest PEG Ratio was 92.10. The lowest was 1.61. And the median was 4.76.


XTER:BAC's PEG Ratio is ranked worse than
98.84% of 172 companies
in the Telecommunication Services industry
Industry Median: 2.155 vs XTER:BAC: 92.10

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Verizon Communications PEG Ratio Historical Data

The historical data trend for Verizon Communications's PEG Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Verizon Communications PEG Ratio Chart

Verizon Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.24 - 4.16 2.69 3.29

Verizon Communications Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PEG Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.84 3.29 7.09 32.04 -

Competitive Comparison of Verizon Communications's PEG Ratio

For the Telecom Services subindustry, Verizon Communications's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Verizon Communications's PEG Ratio Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Verizon Communications's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Verizon Communications's PEG Ratio falls into.



Verizon Communications PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Verizon Communications's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=9.5618433619866/0.10
=95.62

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Verizon Communications  (XTER:BAC) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Verizon Communications PEG Ratio Related Terms

Thank you for viewing the detailed overview of Verizon Communications's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Verizon Communications Business Description

Address
1095 Avenue of the Americas, New York, NY, USA, 10036
Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 million postpaid and 20 million prepaid phone customers via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 30 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks. Verizon agreed to acquire Frontier Communications in September 2024.