T

AT&T Inc.Communication Services / Telecom ServicesINTACT

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.

Share Price
$26.11
52W: $19.89 - $29.79
DCF Fair Value
$16.16
-61.6% Premium
P/E (TTM)
8.6x
ROIC
18.6%
Operating Margin
24.8%
FCF Yield
5.7%
Debt / Equity
1.29x
Piotroski Score
5/9
Altman Z-Score
3.06
Market Cap
$178.9B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($16.16)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$16.16
MOS Buy Target (-25%)
$12.12
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$26.11
DCF Fair Value
$16.15
-61.6% Premium
$10,142M
$100M$10,142M (Reported)$50,000M
12.4%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$148,200M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$107.9B
PV of Terminal Value
$151.0B
Implied Enterprise Value
$258.9B
Implied Equity Value
$110.7B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$11,400$12,813$14,402$16,188$18,195$19,014$19,870$20,764$21,698$22,674
Present Value (PV)$10,458$10,785$11,121$11,468$11,826$11,337$10,869$10,421$9,990$9,578

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number+21.1% MoS
$33.09

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $3.03BVPS: $16.06
Revised Graham Formula+65.3% MoS
$75.27

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings5.4% Yield
$1.41 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $9.6BYield: 5.4%

Reverse DCF: Market Growth Expectation

MODEST BARRIER
4.0% CAGR (Next 10 Yrs)

At the current price of $26.11, the market is assuming the business will compound Free Cash Flow at 4.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
✓ Low market hurdle: Easy for a wide-moat compounder to beat.
Autonomous Thesis Underwriting

Surveil T with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for AT&T Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 24.8% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: AT&T Inc. (T) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for AT&T Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, AT&T Inc. has an estimated DCF intrinsic fair value of $16.16 per share compared to its current market price of $26.11. This represents an estimated 61.6% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $33.09.

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