AT&T possesses a vast and deeply entrenched network of cell towers and fiber optic cables. This physical infrastructure is incredibly costly and time-consuming for competitors to replicate.

↑Large, Sticky Customer Base

The company serves millions of wireless and broadband subscribers. High switching costs and bundled services create significant customer retention, providing a stable revenue stream.

↑Connected Car Partnerships

Strategic alliances with automakers like Rivian, coupled with embedded SIM technology, position AT&T to capture growth in the connected vehicle market. This expands their service reach beyond traditional consumer offerings.

INVESTMENT RISKS

↓Emerging Satellite Competition

SpaceX's Starlink poses a potential disruption to AT&T's broadband business. Its growing subscriber base could offer an alternative, particularly in underserved areas, eroding market share.

↓Regulatory and Legal Setbacks

Recent Supreme Court rulings against wireless carriers, including AT&T, can lead to increased operational costs and impact revenue streams. These legal challenges create uncertainty.

↓Intense Industry Competition

The telecommunications sector is highly competitive, with price wars and rapid technological advancements. This pressure can limit pricing power and impact profitability, as seen with the 'value trap' narrative.

Base case

T base case PE valuation

A base case PE valuation for T estimates a fair value of about $41.79 per share, against a current price of $23.58. The model assumes 11.4% annual earnings growth, a 8x target PE multiple, and a 10% discount rate.

Intrinsic Value

$41.79

Margin of safety

+43.6%

Expected annual return

+12.1%

Base case assumptions: 11.4% annual earnings growth, 8x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.

This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.

Customize the T PE valuation

Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for AT&T Inc. respond.

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Company Overview

Globally, AT&T Inc. delivers an array of telecommunication, media, and technology offerings. Within its Communications division, the company supplies wireless voice and data communication services. It also markets mobile devices, such as smartphones, wireless data access cards, and portable computing gadgets, alongside accessories like protective cases and hands-free equipment. These products are distributed through AT&T's proprietary outlets, authorized agents, and external retail partners. Furthermore, this segment caters to a broad clientele including multinational corporations, small-to-medium-sized enterprises, government entities, and wholesale clients. For these customers, it delivers an extensive suite of services encompassing data, voice connectivity, cybersecurity, cloud-based solutions, outsourcing, and both managed and professional services, in addition to client-side equipment. Residential consumers also benefit from this division's provision of high-speed fiber optic internet and traditional landline telephone services. Its communication-related offerings and merchandise are promoted under well-known brand names such as AT&T, Cricket, AT&T PREPAID, and AT&T Fiber. The Latin America segment is responsible for delivering wireless communication services within Mexico, as well as video entertainment services across the wider Latin American region. These services and products are branded as AT&T and Unefon. Established in 1983 and headquartered in Dallas, Texas, the corporation was previously known as SBC Communications Inc. and officially adopted the name AT&T Inc. in 2005.

Financial Metrics — T PE Stock Valuation Data

PE Ratio (TTM)

7.7x

PEG Ratio

0.09

Earnings Yield

12.95%

ROE (TTM)

19.6%

Revenue/Share (TTM)

$18.09

Dividend Yield

4.71%

Debt/Equity

1.50x

Frequently Asked Questions

What is the PE ratio of T?

The trailing twelve-month PE ratio of T reflects how much investors pay per dollar of AT&T Inc.'s earnings. This metric is most useful when compared to Telecommunications Services peers and the company's own historical range.

Is T overvalued based on PE ratio?

T's PE of 7.7x combined with a PEG ratio of 0.09 provides a growth-adjusted perspective. A PEG below 1.0 suggests T may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Telecommunications Services, a DCF analysis may be more appropriate.

How do I value T stock using PE ratio?

To value AT&T Inc. using PE: (1) Compare the current PE (7.7x) against the Telecommunications Services median to assess relative pricing, (2) check the PEG ratio (0.09) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.

What is the PEG ratio of T?

T's PEG ratio is 0.09, calculated by dividing the PE ratio (7.7x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.

Should I use PE ratio or DCF for T stock valuation?

PE ratio gives a quick relative read — how T is priced versus Telecommunications Services peers. DCF provides an absolute value based on projected free cash flows. For T, with a strong ROE of 19.6%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.

Learn More

See T DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
PE Methodology — Step-by-step guide to PE ratio stock valuation
DCF Methodology — Guide to discounted cash flow analysis
PE Ratio — Understanding the price-to-earnings ratio
Intrinsic Value — How to evaluate stock fair value

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P/E and DCF value T with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.