AT&T Inc. (T) Stock Valuation — PE Analysis
Telecommunications Services · NYSE
Current Price
$21.04
PE Ratio (TTM)
11.2x
Intrinsic Value
$22.39
+6.0% margin of safety
COMPETITIVE MOAT
↑Extensive Network Infrastructure
AT&T possesses a vast and deeply entrenched wireless and fiber optic network across the US. This physical infrastructure represents a significant barrier to entry for new competitors.
↑Brand Recognition and Customer Base
Decades of operation have built strong brand recognition and a loyal, albeit mature, customer base. This provides a stable revenue stream and a foundation for cross-selling services.
↑Scale and Efficiency
The sheer scale of AT&T's operations allows for significant economies of scale in network deployment, maintenance, and customer service. This drives cost efficiencies that smaller rivals struggle to match.
INVESTMENT RISKS
↓Regulatory Scrutiny and Policy Changes
The telecommunications industry is heavily regulated, and potential changes in net neutrality, spectrum allocation, or antitrust enforcement could negatively impact AT&T's business model and profitability.
↓Technological Disruption
Emerging technologies like satellite internet or advancements in fixed wireless access could disrupt traditional broadband and mobile services, requiring continuous adaptation and investment.
↓Debt Burden and Dividend Sustainability
AT&T carries a significant debt load, which could limit its ability to invest in growth, return capital to shareholders, or withstand economic downturns, potentially impacting dividend growth.
Base case
T base case PE valuation
A base case PE valuation for T estimates a fair value of about $22.39 per share, against a current price of $21.04. The model assumes 2.1% annual earnings growth, a 10.73x target PE multiple, and a 10% discount rate.
Intrinsic Value
$22.39
Margin of safety
+6.0%
Expected annual return
+1.2%
Base case assumptions: 2.1% annual earnings growth, 10.73x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
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.
Open PE Calculator for TCompany 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)
11.2x
PEG Ratio
n/m
Earnings Yield
9.29%
ROE (TTM)
12.0%
Revenue/Share (TTM)
$18.85
Dividend Yield
5.36%
Debt/Equity
1.67x
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 11.2x combined with a PEG ratio of -0.28 provides a growth-adjusted perspective. T has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. 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 (11.2x) against the Telecommunications Services median to assess relative pricing, (2) check the PEG ratio (-0.28) 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 -0.28, calculated by dividing the PE ratio (11.2x) by the expected earnings growth rate. Because T has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. 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 the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. 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
Related PE Valuations
All Communication Services valuationsP/E and DCF value T with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.