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 8.90. Verizon Communications's 5-Year EBITDA growth rate is 2.90%. Therefore, Verizon Communications's PEG Ratio for today is 3.07.
* 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:
VZ'
s PEG Ratio Range Over the Past 10 Years
Min: 0.91 Med: 8.35 Max: 53.54
Current: 3.07
During the past 13 years, Verizon Communications's highest PEG Ratio was 53.54. The lowest was 0.91. And the median was 8.35.
VZ's PEG Ratio is ranked worse than 69.23% of 169
companies
in the Telecommunication Services industry
Industry Median: 1.86
vs VZ: 3.07
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 Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
PEG Ratio
-
-
8.52
-
4.67
Verizon Communications Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
PEG Ratio
16.34
6.62
4.67
4.50
5.32
Competitive Comparison
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 PEG Ratio Distribution
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
* 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 (NYSE:VZ) 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 is now primarily a wireless business (more than 70% of revenue and nearly all operating income). It serves about 91 million postpaid and 4 million prepaid phone customers and connects another 25 million data devices, like tablets, via its nationwide network, making it the largest U.S. wireless carrier. The firm has agreed to acquire Tracfone, a wireless reseller that serves about 20 million prepaid customers in the U.S., from America Movil. Fixed-line telecom operations include local networks (12% of revenue) in the Northeast, which reach about 25 million homes and businesses, and nationwide enterprise services (10%). Verizon Media Group, the online media and advertising firm formed with the acquisitions of AOL and Yahoo, provides the remainder of revenue.
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