Trading on a 2011 earnings multiple of 5.2, Questor says hold.

The current-year earnings multiple is 12.4, falling to 11.7 next year.

The current-year earnings multiple is 12.7, falling to 12.1 next year.

An earnings multiple of at most 16 and a yield of 4 to 5 percent are more typical.

This would put the shares at 274p, up 4p yesterday, on an earnings multiple of 10.5.

Many analysts say the settlement will bring the earnings multiples closer to the market average.

But Lucent's earnings multiple has caught up and is now in the mid-40's.

This year the situation has reversed, with stocks at an average earnings multiple of 16, while growth is expected to be 8 to 10 percent.

If Verizon's stock were trading at an earnings multiple of 19.63 rather than 14.63, each share would be worth $57.44.

The current-year earnings multiple is just 8.4pc, falling to 8.1pc.