US Equities Analysis

T — AT&T

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 22.72%
Profit Margins 16.94%
Return on Equity 18.37%
Return on Assets 4.12%
Free Float 6.93B
Dividend Yield 4.89%
Short Int % Utilisation 1.85%

2.2 Growth

Metric Value
Revenue Growth 2.9%
Free Cash Flow 8.85B
EBITDA 7.36 (Ratio)
Enterprise Value 327.02B
EV/Revenue 2.58
EV/EBITDA 7.36

Revenue growth of 2.9% suggests mature or challenged top-line momentum.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -6.91%
Risk / Std Dev (Ann.)* 25.12%
1-Year Price Return* -9.72%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $24.89
52-Week Range $19.89 – $29.79
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $125.65B
Prior annual revenue $122.34B
EBIT $33.81B
Tax rate 13.40%
NOPAT = EBIT × (1 − tax rate) $29.28B
Forecast start-growth basis 2.71%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $29.28B
Add: depreciation & amortisation $20.89B
Less: capital expenditure -$20.84B
Less/(add): working-capital cash-flow movement $240.00M
Current unlevered FCFF $29.56B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 2.71% $30.07B $21.45B -$21.41B $246.50M $30.36B $29.55B
2 2.66% $30.87B $22.02B -$21.99B $253.04M $31.16B $28.73B
3 2.60% $31.68B $22.59B -$22.57B $259.63M $31.96B $27.91B
4 2.55% $32.48B $23.17B -$23.16B $266.26M $32.76B $27.10B
5 2.50% $33.30B $23.75B -$23.75B $272.91M $33.57B $26.30B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.42
Cost of equity 7.01%
Pre-tax cost of debt 4.60%
WACC 5.57%
WACC validation requires assumption review

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $1,119.90B
Implied terminal EV / EBITDA 18.01x
Terminal value as % of enterprise value 85.95%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $139.58B
Present value of terminal value $853.94B
Indicated enterprise value $993.53B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $993.53B
Less: gross interest-bearing debt $155.04B
Add: cash and equivalents $18.23B
Add: affiliate investments $0.00
Less: minority interests $17.96B
Indicated common equity value $838.76B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 7,179,000,000.00
Share-count basis reported diluted weighted-average shares
Current market price $25.11
DCF indicative value per share $116.83
Indicative value vs. market price 365.22%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range review required
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:50:03.753203 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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