AT&T Inc. (T) Stock Valuation — PE Analysis
Telecommunications Services · NYSE
Current Price
$23.94
PE Ratio (TTM)
7.9x
Intrinsic Value
$30.7
+22.0% margin of safety
COMPETITIVE MOAT
↑Extensive Fiber Network Infrastructure
AT&T possesses a vast and deeply entrenched fiber optic network, a significant capital investment that creates high barriers to entry for competitors.
↑Large, Sticky Wireless Customer Base
The company benefits from a massive and loyal wireless subscriber base, leading to substantial recurring revenue and economies of scale in service delivery.
↑Bundled Service Ecosystem
AT&T's ability to bundle wireless, internet, and entertainment services creates customer stickiness and increases switching costs for consumers.
INVESTMENT RISKS
↓High Capital Expenditure Requirements
Maintaining and expanding its network requires continuous, substantial capital investment, which can strain financial resources and impact profitability.
↓Regulatory and Political Scrutiny
The telecommunications industry is subject to significant government regulation, which can impact pricing, competition, and operational flexibility.
↓Technological Obsolescence
Rapid advancements in communication technology could render existing infrastructure and services outdated, requiring costly upgrades or replacements.
Base case
T base case PE valuation
A base case PE valuation for T estimates a fair value of about $30.7 per share, against a current price of $23.94. The model assumes 3.1% annual earnings growth, a 8x target PE multiple, and a 10% discount rate.
Intrinsic Value
$30.7
Margin of safety
+22.0%
Expected annual return
+5.1%
Base case assumptions: 3.1% annual earnings growth, 8x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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)
7.9x
PEG Ratio
0.11
Earnings Yield
12.94%
ROE (TTM)
19.5%
Revenue/Share (TTM)
$18.34
Dividend Yield
4.64%
Debt/Equity
1.47x
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 7.9x combined with a PEG ratio of 0.11 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the 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 (7.9x) against the Telecommunications Services median to assess relative pricing, (2) check the PEG ratio (0.11) 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 0.11, calculated by dividing the PE ratio (7.9x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. 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 19.5%, 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
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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.