AT&T’s P/E ratio is 8.5!
I know P/E ratio is not the perfect measure if a stock is over/under priced. And high P/E indicates growth expectations. But 8.5 is low! As a reference Chevron is 20, Dominos is 28, Zoom at its current stock price is 22, T-Mobile is 50, Verizon is 10 Why? Why so much of a difference? TC:-240 #investments #personalfinance #stockmarket #growth #FIRE #att
ATT is in a lot of debt
Value trap, massive debt.
There is a reason why pe is low.
Yep 2.0 debt to equity ratio not great
0 growth
Yeah.. that’s what my point is. How come these other stocks have more than 2.5 times the multiple. Does dominos and Chevron have more growth potential than ATT? I don’t see that.. but ok
Chevron is getting an artificial pump because of oil prices. Domino's is actually growing if you look at revenue histories
~10 is where most stocks should trade unless they are in hyper growth mode.
Yeah I agree.. I think S&P average has been been in mid teens
Tc or bambambam
Added
Meta is 12 p/e now. What’s your point
That’s my point… Meta’s growth potential cannot be lower than T-Mobile or Starbucks or Dominos.. debt has been brought up as a factor… Meta has $5b in long term debt so that is not an issue for Meta..
Market cap is $160b, debt is $190b. PE at 8.5 is still too high for T imo.
Sale of WarnerBros to discovery and spinning of DirectV should help that
High amount of debt