how would i use the peg ratio to find if the at&t stock is fully valued?

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how would i use the peg ratio to find if the at&t stock is fully valued?

Can you show me how to do it? Also how would I compare the stocks p/e to the industry and the s&p 500.. I know the p/e ratio is 12.60. But wat is the industry and s&

muncie birder

I can provide my thoughts and also perhaps an answer or two.

I don't think you can use the peg ratio to make such a determination. There are a couple of reasons for that. One is that the peg is based on projected growth rate, and the projection is very unreliable and in many cases if not most more optimistic than what one might expect to actually happen. Another is that if one could use the peg ratio one would expect that the peg ratio of most stocks would cluster around a central number, perhaps between 1 and 1.25. Somewhere in that range. But they do not. Dividends should be taken into account when using the peg ratio and making a determination on full value or not. T pays a very healthy dividend which should cause its far value peg ratio to be somewhat greater than the norm, since its dividend is considerably greater than the norm. Yahoo gives it a peg of 1.73. VZ its main competitor is given a peg of 3.5 but another source gives it a peg of 1.8. There is a big difference between two different peg estimates for the same company. DT pays a much larger dividend yet has a peg of about 1.0. Does that indicate that it is a much better value?

According to my stock broker's web site--Fidelity--the industry pe ratio is 13.4 for the trailing 12 months of the Diversified Telecommunications industry of which they have included T.

According to Ishares their index fund of the sp500 has a pe ratio of 19.65 for the trailing 12 months.

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