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AT&T Inc (T)

Undervalued
Communication ServicesTelecom ServicesUnited States

Fundamental

77

Price

$24.40

Market Cap

$170.62B

Part 1 · What the company is worth

Overview

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.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$127.24B

Trailing 12 months (through 6/30/2026)

Net Income

$21.56B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$19.44B

Total Equity

$126.49B

Total Liabilities

$293.71B

Current Ratio

0.97

Interest Coverage

3.56

Debt/EBITDA

3.62

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseUndervalued

Fair Value

$47.21

Current Price

$24.40

Margin of Safety

+48.3%

Fair Value Range

$30.69 - $63.74

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$29.05
Discounted cash flow (DCF):$108.49
Earnings multiple (P/E):$30.32
Graham growth formula:$49.33
Earnings power value (EPV):$36.40
Justified P/B:$61.02
Dividend discount (Gordon):$29.93
P/FFO, funds from operations:$100.03
Mid-cycle earnings:$49.66
Revenue multiple:$37.64
Analyst Consensus:Buy (20B / 14H / 1S)
Last Earnings Surprise:+8.41%

Valuation Metrics

P/E Ratio

8.11

ROE

17.4%

P/B Ratio

1.32

P/FCF

9.49

Gross Margin

-

ROIC

5.4%

Profitability Radar

Value Creation (Economic Moat)

ROIC

5.4%

WACC

5.7%

ROIC − WACC

-0.3 pp

ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.

Fundamental Analysis Criteria

Passed (20)

  • EPS shows upward trend
  • ROIC 5.4%
  • P/FCF 9.49
  • P/B Ratio 1.32
  • Debt/Equity ratio
  • Operating Margin 20.1%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Price below Graham Number
  • DCF valuation (Undervalued)
  • ROE 19.5%
  • Analyst Consensus 57% Buy
  • Earnings Surprise avg 4.8%
  • Earnings Quality (OCF/NI) 1.85
  • Share Dilution -1.7%
  • Net Margin Trend 16.9% vs 10.3%
  • Piotroski F-Score 7/9

Failed (5)

  • EPS CAGR 2.53%
  • Price CAGR -2.07%
  • CapEx intensity
  • Low reliance on intangibles
  • Revenue Growth 5Y -2.6%

Unavailable (3)

  • Gross Margin NaN%
  • Dividend Payout NaN%
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

1.85

High quality: earnings backed by cash

Share Dilution

-1.7%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. John T. StankeyCEO, President & Chairman62
Mr. Pascal Desroches CPASenior EVP & CFO61
Mr. Jeffery Scott McElfreshChief Operating Officer55
Mr. David R. McAtee IISenior EVP & General Counsel56
Ms. Lori M. LeeGlobal Marketing Officer and Senior EVP of International59
Ms. Sabrina SandersSenior VP, Chief Accounting Officer & Controller45
Mr. Brett Joseph FeldmanSenior Vice President of Finance & Investor Relations-
Mr. Larry SolomonChief Communications Officer-
Mr. Rick MooreSenior Vice President of Corporate Development73
Ms. Kellyn Smith Kenny M.B.A.Chief Marketing & Growth Officer47

Audit Risk

1

Board Risk

6

Compensation Risk

5

Shareholder Rights Risk

3

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-09

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-22

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-09

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for T, sourced from Markets Gazette.

  • 10d agoPOSITIVE
    AT&T’s stock looks like the smartest bet in the wireless sector, analyst says

    An analyst from BNP Paribas has issued a positive rating for AT&T Inc. stock, highlighting that investors have "little to quibble with on the mobile side." This endorsement suggests strong performance and positive outlook for AT&T's wireless division, a key revenue driver. The analyst's confidence implies that the company's strategic decisions and operational execution in the competitive wireless market are yielding favorable results, potentially leading to increased investor interest and a positive impact on the stock price.

  • 8/5/2026NEGATIVE
    Why AT&T, Verizon and T-Mobile shares are down after SpaceX’s earnings

    Shares of AT&T, Verizon, and T-Mobile have experienced a downturn following SpaceX's recent earnings report, which indicated the company's potential to develop wireless capabilities without substantial network infrastructure expenditures. This development poses a competitive threat to established mobile carriers by suggesting a new entrant could disrupt the market with a lower cost base. Investors are reassessing the long-term market share and profitability prospects for the incumbent telecom giants, leading to a sell-off.

  • 7/27/2026NEUTRAL
    AT&T Cuts Through Europe’s Summer Lull With Five-Part Bond Deal

    AT&T Inc. has launched a significant five-part bond offering in Europe, aiming to raise at least €2 billion ($2.23 billion). This move breaks through the typical summer slowdown in the European primary debt market, indicating AT&T's proactive capital raising strategy. The substantial size of the deal suggests the company is seeking to secure funding for its operations, potential investments, or debt refinancing. Investors will monitor the pricing and demand for these bonds to gauge market appetite for AT&T's credit.

  • 7/22/2026POSITIVE
    AT&T’s stock rises toward best day in six months. Why investors are cheering the latest earnings.

    AT&T Inc. shares are on track for their best performance in six months, buoyed by a strong earnings report that surpassed analyst expectations. The telecommunications giant exceeded targets for subscriber growth, free cash flow, and profitability. This positive momentum suggests robust operational execution and increasing demand for AT&T's services, potentially signaling a turning point for investor sentiment and offering a compelling case for the stock.

  • 7/2/2026NEGATIVE
    SpaceX panic sends AT&T stock to its worst week in years

    AT&T shares have experienced their worst week in years, plummeting due to the competitive threat posed by SpaceX's Starlink satellite internet service. This existential challenge from a new technology disrupts AT&T's traditional telecommunications market. Investors are reacting to the potential for market share erosion and reduced future revenue streams as Starlink offers an alternative connectivity solution. The stock's significant decline reflects a reassessment of AT&T's long-term growth prospects in light of this disruptive innovation.

  • 6/17/2026NEGATIVE
    AT&T Stock Falls After CFO Pascal Desroches Retires

    AT&T Inc. shares experienced a decline following the announcement of Chief Financial Officer Pascal Desroches' retirement. Desroches, who has been instrumental in the company's financial strategy, including its recent debt reduction efforts, will step down. The unexpected departure of a key executive often introduces uncertainty regarding future financial leadership and strategic direction. Investors may interpret this as a signal of potential instability or a shift in financial management, leading to a sell-off as they await clarity on his successor and the continuity of the company's financial plans.

via Markets Gazette