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:
Below please find a table outlining a discounted cash flow forecast for T, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that At&T Inc ranked in the 71th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for T, they are:
In the past 5.81 years, At&T Inc has a compound free cash flow growth rate of 0.15%; that's higher than 64.92% of free cash flow generating stocks in the Communication Services sector.
At&T Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 6.95% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CHU, ALSK, ATUS, OTEL, and BCE can be thought of as valuation peers to T, in the sense that they are in the Communication Services sector and have a similar price forecast based on DCF valuation.