T Relative Valuation
T's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, T is overvalued; if below, it's undervalued.
Historical Valuation
AT&T Inc (T) is now in the Fair zone, suggesting that its current forward PE ratio of 11.33 is considered Fairly compared with the five-year average of 8.94. The fair price of AT&T Inc (T) is between 17.57 to 24.67 according to relative valuation methord.
Relative Value
Fair Zone
17.57-24.67
Current Price：24.20
Fair
11.33
PE
1Y
3Y
5Y
7.05
EV/EBITDA
AT&T Inc. (T) has a current EV/EBITDA of 7.05. The 5-year average EV/EBITDA is 7.33. The thresholds are as follows: Strongly Undervalued below 5.84, Undervalued between 5.84 and 6.59, Fairly Valued between 8.07 and 6.59, Overvalued between 8.07 and 8.81, and Strongly Overvalued above 8.81. The current Forward EV/EBITDA of 7.05 falls within the Historic Trend Line -Fairly Valued range.
12.65
EV/EBIT
AT&T Inc. (T) has a current EV/EBIT of 12.65. The 5-year average EV/EBIT is 13.25. The thresholds are as follows: Strongly Undervalued below 10.00, Undervalued between 10.00 and 11.63, Fairly Valued between 14.88 and 11.63, Overvalued between 14.88 and 16.50, and Strongly Overvalued above 16.50. The current Forward EV/EBIT of 12.65 falls within the Historic Trend Line -Fairly Valued range.
1.38
PS
AT&T Inc. (T) has a current PS of 1.38. The 5-year average PS is 1.20. The thresholds are as follows: Strongly Undervalued below 0.77, Undervalued between 0.77 and 0.98, Fairly Valued between 1.42 and 0.98, Overvalued between 1.42 and 1.63, and Strongly Overvalued above 1.63. The current Forward PS of 1.38 falls within the Historic Trend Line -Fairly Valued range.
4.12
P/OCF
AT&T Inc. (T) has a current P/OCF of 4.12. The 5-year average P/OCF is 4.02. The thresholds are as follows: Strongly Undervalued below 2.46, Undervalued between 2.46 and 3.24, Fairly Valued between 4.79 and 3.24, Overvalued between 4.79 and 5.57, and Strongly Overvalued above 5.57. The current Forward P/OCF of 4.12 falls within the Historic Trend Line -Fairly Valued range.
10.00
P/FCF
AT&T Inc. (T) has a current P/FCF of 10.00. The 5-year average P/FCF is 8.48. The thresholds are as follows: Strongly Undervalued below 4.71, Undervalued between 4.71 and 6.59, Fairly Valued between 10.36 and 6.59, Overvalued between 10.36 and 12.25, and Strongly Overvalued above 12.25. The current Forward P/FCF of 10.00 falls within the Historic Trend Line -Fairly Valued range.
AT&T Inc (T) has a current Price-to-Book (P/B) ratio of 1.58. Compared to its 3-year average P/B ratio of 1.43 , the current P/B ratio is approximately 10.02% higher. Relative to its 5-year average P/B ratio of 1.31, the current P/B ratio is about 20.61% higher. AT&T Inc (T) has a Forward Free Cash Flow (FCF) yield of approximately 11.46%. Compared to its 3-year average FCF yield of 13.24%, the current FCF yield is approximately -13.45% lower. Relative to its 5-year average FCF yield of 13.42% , the current FCF yield is about -14.61% lower.
1.58
P/B
Median3y
1.43
Median5y
1.31
11.46
FCF Yield
Median3y
13.24
Median5y
13.42
Competitors Valuation Multiple
The average P/S ratio for T's competitors is 1.55, providing a benchmark for relative valuation. AT&T Inc Corp (T) exhibits a P/S ratio of 1.38, which is -11.24% above the industry average. Given its robust revenue growth of 1.64%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of T increased by 4.98% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 0.48 to 31.51.
The secondary factor is the Revenue Growth, contributed 1.64%to the performance.
Overall, the performance of T in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is AT&T Inc (T) currently overvalued or undervalued?
AT&T Inc (T) is now in the Fair zone, suggesting that its current forward PE ratio of 11.33 is considered Fairly compared with the five-year average of 8.94. The fair price of AT&T Inc (T) is between 17.57 to 24.67 according to relative valuation methord.
What is AT&T Inc (T) fair value?
T's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of AT&T Inc (T) is between 17.57 to 24.67 according to relative valuation methord.
How does T's valuation metrics compare to the industry average?
The average P/S ratio for T's competitors is 1.55, providing a benchmark for relative valuation. AT&T Inc Corp (T) exhibits a P/S ratio of 1.38, which is -11.24% above the industry average. Given its robust revenue growth of 1.64%, this premium appears unsustainable.
What is the current P/B ratio for AT&T Inc (T) as of Jan 07 2026?
As of Jan 07 2026, AT&T Inc (T) has a P/B ratio of 1.58. This indicates that the market values T at 1.58 times its book value.
What is the current FCF Yield for AT&T Inc (T) as of Jan 07 2026?
As of Jan 07 2026, AT&T Inc (T) has a FCF Yield of 11.46%. This means that for every dollar of AT&T Inc’s market capitalization, the company generates 11.46 cents in free cash flow.
What is the current Forward P/E ratio for AT&T Inc (T) as of Jan 07 2026?
As of Jan 07 2026, AT&T Inc (T) has a Forward P/E ratio of 11.33. This means the market is willing to pay $11.33 for every dollar of AT&T Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for AT&T Inc (T) as of Jan 07 2026?
As of Jan 07 2026, AT&T Inc (T) has a Forward P/S ratio of 1.38. This means the market is valuing T at $1.38 for every dollar of expected revenue over the next 12 months.