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AT&T Inc. — Intrinsic Value & Fair Price

T
NYSECommunication ServicesTelecommunications ServicesCIK 0000732717att.comAbout T
Last close · Oct 16, 202623.43−0.07 (−0.30%)
Market cap$160.6B
Model value · DCF · Perpetuity growth · 5y
56.16
AT&T closed at $23.43 — undervalued by 58% vs model.
22.11the model's range118.25

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
8.57 – 56.64
Wall St. target
28.00 16% below
Below model, 1y
90 of 95 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
4.74%
#31 · Highest dividend yield
Past 2 years
low 3.75%high 5.81%
Dividends per share, a year at a time
$2.08Oct ’21$1.35Oct ’22$1.11Oct ’23$1.11Oct ’24$1.11Oct ’25$1.11TTM
Dividends / free cash flow, FY2025
42.1%
Raised
—
Growth, 5 yrs
-11.8% a year
Last change
−46.6% · Apr 2022
Every payment, with ex-dates · latest $0.2775, paid Nov 2, 2026

Research on T

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How it is valued

Valued asMature & stable
Low/slowing growth (~1% recent)Moderate margins (17% net margin)Strong dividend yieldHighly cyclical earningsStrong FCF yield (12.1%)
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
7.7×
EV / EBITDA
5.8×
FCF yield
11.6%
Dividend yield, TTM
4.74%
Beta
0.43
Cost of capital (WACC)
5.96%
Full financials

Analyst actions

third-party, quoted
10-13Bernstein · target24.00
10-09Scotiabank · target26.50
10-07KeyBanc · target36.00
09-21BNP Paribas · “Outperform” from “Neutral”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
Side by side:vs VZvs TMUS

The weekly

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About AT&T

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.

CEO
John T. Stankey
Headquarters
Dallas, TX
Employees
133,030
IPO
1983-11-21
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.