Telecommunications Services · NYSE
Current Price
$25.77
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on AT&T Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
AT&T Inc. provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying cases and hands-free devices through its own company-owned stores, agents, and third-party retail stores. It also provides data, voice, security, cloud solutions, outsourcing, and managed and professional services, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers. In addition, this segment offers broadband fiber and legacy telephony voice communication services to residential customers. It markets its communications services and products under the AT&T, Cricket, AT&T PREPAID, and AT&T Fiber brand names. The company's Latin America segment provides wireless services in Mexico; and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brand names. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005. AT&T Inc. was incorporated in 1983 and is headquartered in Dallas, Texas.
ROIC (TTM)
5.6%
ROE (TTM)
19.6%
FCF Yield
9.69%
Based on trailing twelve-month data, T shows a free cash flow per share of N/A and a ROIC of 5.6%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 9.69% are important context metrics when evaluating T's stock valuation relative to peers.
The intrinsic value of T depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether T is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $25.77. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on AT&T Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Telecommunications Services industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting T's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For AT&T Inc., this means projecting how much free cash flow the Telecommunications Services will produce over the next 5-10 years, then discounting those amounts to today's dollars. T's ROIC of 5.6% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For T, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
