T Valuation

AT&T Inc

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28.770

-0.67(-2.276%)1D

Overview
Forecast
Valuation
Earnings

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 Overvalued zone, suggesting that its current forward PE ratio of 13.87 is considered Overvalued compared with the five-year average of 8.72. The fair price of AT&T Inc (T) is between 18.19 to 24.43 according to relative valuation methord. Compared to the current price of 29.44 USD , AT&T Inc is Overvalued By 20.52%.

Relative Value

Fair Zone

18.19-24.43

Current Price：29.44

20.52%

Overvalued

13.54

Trailing

Forward

7.89

EV/EBITDA

AT&T Inc. (T) has a current EV/EBITDA of 7.89. The 5-year average EV/EBITDA is 7.32. The thresholds are as follows: Strongly Undervalued below 5.84, Undervalued between 5.84 and 6.58, Fairly Valued between 8.06 and 6.58, Overvalued between 8.06 and 8.80, and Strongly Overvalued above 8.80. The current Forward EV/EBITDA of 7.89 falls within the Historic Trend Line -Fairly Valued range.

14.36

EV/EBIT

AT&T Inc. (T) has a current EV/EBIT of 14.36. The 5-year average EV/EBIT is 13.39. The thresholds are as follows: Strongly Undervalued below 10.01, Undervalued between 10.01 and 11.70, Fairly Valued between 15.08 and 11.70, Overvalued between 15.08 and 16.77, and Strongly Overvalued above 16.77. The current Forward EV/EBIT of 14.36 falls within the Historic Trend Line -Fairly Valued range.

1.67

AT&T Inc. (T) has a current PS of 1.67. The 5-year average PS is 1.18. The thresholds are as follows: Strongly Undervalued below 0.78, Undervalued between 0.78 and 0.98, Fairly Valued between 1.38 and 0.98, Overvalued between 1.38 and 1.58, and Strongly Overvalued above 1.58. The current Forward PS of 1.67 falls within the Strongly Overvalued range.

5.36

P/OCF

AT&T Inc. (T) has a current P/OCF of 5.36. The 5-year average P/OCF is 4.03. The thresholds are as follows: Strongly Undervalued below 2.47, Undervalued between 2.47 and 3.25, Fairly Valued between 4.81 and 3.25, Overvalued between 4.81 and 5.58, and Strongly Overvalued above 5.58. The current Forward P/OCF of 5.36 falls within the Overvalued range.

12.47

P/FCF

AT&T Inc. (T) has a current P/FCF of 12.47. The 5-year average P/FCF is 8.26. The thresholds are as follows: Strongly Undervalued below 4.79, Undervalued between 4.79 and 6.53, Fairly Valued between 10.00 and 6.53, Overvalued between 10.00 and 11.73, and Strongly Overvalued above 11.73. The current Forward P/FCF of 12.47 falls within the Strongly Overvalued range.

AT&T Inc (T) has a current Price-to-Book (P/B) ratio of 2.01. Compared to its 3-year average P/B ratio of 1.35 , the current P/B ratio is approximately 48.71% higher. Relative to its 5-year average P/B ratio of 1.27, the current P/B ratio is about 58.42% higher. AT&T Inc (T) has a Forward Free Cash Flow (FCF) yield of approximately 9.37%. Compared to its 3-year average FCF yield of 13.34%, the current FCF yield is approximately -29.74% lower. Relative to its 5-year average FCF yield of 13.62% , the current FCF yield is about -31.19% lower.

1.96

P/B

Median3y

1.35

Median5y

1.27

9.32

FCF Yield

Median3y

13.34

Median5y

13.62

Competitors Valuation Multiple

The average P/S ratio for T's competitors is 1.81, providing a benchmark for relative valuation. AT&T Inc Corp (T) exhibits a P/S ratio of 1.67, which is -7.58% above the industry average. Given its robust revenue growth of 3.52%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Turkcell Iletisim Hizmetleri AS

Verizon Communications Inc

Performance Decomposition

Market capitalization of T increased by 49.86% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.85 to 16.37.

The secondary factor is the Margin Expansion, contributed 18.94%to the performance.

Overall, the performance of T in the past 1 year is driven by P/E Change. Which is more unsustainable.

3.52%

29.80B → 30.85B

Revenue Growth

18.94%

13.25 → 15.76

Margin Expansion

27.40%

12.85 → 16.37

P/E Change

49.86%