AT&T provides telecommunications services in the United States and internationally. Its services and products include wireless communications, data/broadband and Internet services, video services, local exchange services, long-distance services, telecommunications equipment, managed networking and wholesale services. The company operates through two segments, Wireless and Wireline. The company was founded in 1983 and is based in Dallas, Texas.
T Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for At&T Inc. To summarize, we found that At&T Inc ranked in the 73th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 235% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of At&T Inc, consider:
The compound growth rate in the free cash flow of At&T Inc over the past 5.77 years is 0.17%; that's better than 64.68% of cash flow producing equities in the Communication Services sector, where it is classified.
At&T Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 5.1% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Communication Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as T, try CHU, CNSL, ATUS, CEL, and CTL.
I've often written about AT&T (T) in the past - but few occasions have warranted an article as much as this one, given the valuation we're looking at for the largest telecommunications company in the entire US - and the world. While AT&T is still managing its mountain of debt,...
AT&T (T) has come to a labor deal with Communications Workers of America District 6 on a four-year extension of the Southwest wireline contract. The early deal takes effect April 11, 2021, and runs to April 12, 2025. The extension covers more than 14,000 workers in Arkansas, Kansas, Missouri, Oklahoma...
Comcast Corp's NBCUniversal has struck a deal with ViacomCBS Inc to bring "The Godfather" trilogy, "Undercover Boss" and other hit franchises to the upcoming Peacock streaming video platform, the companies announced on Wednesday. Peacock, set to launch nationally on July 15 on mobile devices, Web and connected television platforms, will compete against Netflix Inc, Amazon.com Inc Prime Video, Walt Disney Co's Disney+, Hulu, and AT&T Inc's HBO Max in the fight for paying subscribers.
Google's YouTube TV is raising its monthly rate from $50 to $65. The company cited those additional channels, its deal with AT&T (NYSE: T) to offer subscribers HBO Max, as well as some new features in its price increase announcement. YouTube TV had been the lowest-priced virtual multichannel video programming distributor (vMVPD) that offered a full-fledged cable subscription replacement.