AT&T
AT&T Inc. provides telecommunications and technology services worldwide. It operates through two segments, Communications and Latin America. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, carryi…
AT&T Inc. provides telecommunications and technology services worldwide. It operates through two segments, Communications and Latin America. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, carrying cases/protective covers, and wireless chargers through its own company-owned stores, agents, and third-party retail stores. It also provides AT&T Dedicated Internet, fiber ethernet and broadband, fixed wireless, and hosted and managed professional services; and copper-based voice and data, Virtual Private Networks (VPN), wholesale, outsourcing, and IP, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers. In addition, this segment offers broadband services, including fiber connections, legacy telephony voice communication services, and other VoIP services and equipment to residential customers. This segment markets its communications services and products under the AT&T, AT&T Business, Cricket, AT&T PREPAID, AT&T Fiber, and AT&T Internet Air brand names. Its Latin America segment provides postpaid and prepaid wireless services in Mexico under the AT&T and Unefon brand names, as well as sells smartphones through its stores, agents and third-party retail stores. 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 based in Dallas, Texas.Priced within the modelled range
Other models: USD 11.32–55.71 (median 23.19). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price within modeled range
Free-cash-flow DCF using TTM through 30 Sep 2026 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 2% growth, 2.9% terminal growth, and 10.4% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 2%, discount rate 10.40%, terminal growth 2.90% (sector defaults). See a worked example.
Blended growth assumption: 2.0% (sector default 7.0%, own revenue history -1.6%, analyst revenue consensus 0.1%).
5-year outlook: relative outlook of about 5.7% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 0.1% a year; the growth assumption used is 2.0%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 9.98 (-53.4%)
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EPS-based Gordon proxy
— USD 23.19 (+8.2%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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FCFF (steady state)
— USD 11.32 (-47.2%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 55.71 (+160.0%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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EV/Sales (Rule of 40)
— USD 116.69 (+444.5%)
Not used: Used only when cash-flow models land far below the price; here they do not.
| Bear USD 1.39 | -1443.3% |
| Base USD 9.98 | -114.8% |
| Bull USD 25.02 | 14.3% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 21.43 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.9%, discount 10.4%).
Compare: the market implies 8.9% a year, this model assumes 2.0%. The market expects more than this model does, which is why it reads as overvalued.
Sensitivity: base value per share
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
These are assumption-based scenarios, not a confidence interval. Scroll horizontally to see all discount rates.
| Growth \ Discount | 8.4% | 9.4% | 10.4% | 11.4% | 12.4% |
|---|---|---|---|---|---|
| -2.0% | 14.74 | 8.84 | 4.51 | 1.20 | – |
| 0.0% | 18.44 | 11.93 | 7.14 | 3.49 | 0.60 |
| 2.0% | 22.43 | 15.25 | 9.98 | 5.95 | 2.76 |
| 4.0% | 26.74 | 18.82 | 13.02 | 8.59 | 5.09 |
| 6.0% | 31.36 | 22.67 | 16.30 | 11.43 | 7.59 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 78 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 4 of 5 years profitable | 16 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +1.6% a year | 12 / 20 |
| Balance sheet | net debt 3.7x EBITDA | 10 / 20 |
| Margins | EBITDA margin 35% | 20 / 20 |
Peers in Communication Services
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| T (this company) | USD 21.43 | -114.8% | 11.2 | 1.4 | 5.4% | 78 |
| VOD.L Vodafone Group Public Limited Company | GBP 1.14 | 43.5% | – | 0.6 | 3.3% | 66 |
| PUB.PA Publicis Groupe S.A. | EUR 102.40 | 42.1% | 15.7 | 2.5 | 3.5% | 90 |
| CMCSA Comcast | USD 24.23 | 40.8% | 7.6 | 0.9 | 5.6% | 82 |
| TEF.MC Telefonica, S.A. | EUR 3.34 | 34.2% | – | – | 9.0% | 59 |
| INF.L Informa plc | GBP 8.40 | 23.0% | – | 1.9 | 2.4% | 66 |
| SONY Sony Group Corporation | USD 26.66 | 22.1% | – | – | – | 82 |
| EMBRAC-B.ST Embracer Group AB | SEK 95.20 | 18.7% | – | 1.0 | – | 56 |
| GOOG Alphabet Inc. (Class C) | USD 286.13 | 10.4% | 15.0 | 5.2 | 0.3% | 100 |
| Peer median | 15.0 | 1.5 | ||||
Dividends
Paid in the last 12 months: USD 1.11 per share · yield 5.19% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 1.112 |
| 2025 | 1.112 |
| 2024 | 1.112 |
| 2023 | 1.112 |
| 2022 | 1.354 |
| 2021 | 2.080 |
Trailing 12-month financials
TTM through 30 Sep 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 14:11
| Revenue | USD 128,852,000,000 |
|---|---|
| EBITDA | USD 45,722,000,000 |
| EBIT | USD 25,684,000,000 |
| Net income | USD 13,071,000,000 |
| Free cash flow | USD 17,847,000,000 |
| Capital expenditures | USD 22,419,000,000 |
| Debt | USD 178,147,000,000 |
| Cash | USD 10,767,000,000 |
| Working capital | USD -7,930,000,000 |
| Shares outstanding | 6,844,000,000 |
| Reported dividends per share | USD 1.1594 |