AT&T Inc. (T) DCF Valuation
Transparent DCF models put AT&T Inc. (T)'s fair value in a range of $22.08 – $286.00 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $22.71 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $22.71, the market is pricing in roughly +5.2%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of -10.0%. The price is betting on acceleration above its track record.
Current Price
$22.71
Fair-Value Range
$22.08 – $286.00
Market-Implied Growth
+5.2%/yr
vs -10.0% 5Y actual
T DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $17.7B · 6.95B shares · net debt $136.8B
Estimated Fair Value
$22.08
-2.8% vs $22.71
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $22.71; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $32.22 | $34.88 | $38.02 | $41.80 | $46.41 |
| 9.0% | $24.89 | $26.71 | $28.81 | $31.26 | $34.16 |
| 10.0% | $19.32 | $20.61 | $22.08 | $23.75 | $25.69 |
| 11.0% | $14.93 | $15.88 | $16.94 | $18.14 | $19.49 |
| 12.0% | $11.40 | $12.11 | $12.90 | $13.77 | $14.75 |
About AT&T Inc.
Globally, AT&T Inc. delivers an array of telecommunication, media, and technology offerings. Within its Communications division, the company supplies wireless voice and data communication services. It also markets mobile devices, such as smartphones, wireless data access cards, and portable computing gadgets, alongside accessories like protective cases and hands-free equipment. These products are distributed through AT&T's proprietary outlets, authorized agents, and external retail partners. Furthermore, this segment caters to a broad clientele including multinational corporations, small-to-medium-sized enterprises, government entities, and wholesale clients. For these customers, it delivers an extensive suite of services encompassing data, voice connectivity, cybersecurity, cloud-based solutions, outsourcing, and both managed and professional services, in addition to client-side equipment. Residential consumers also benefit from this division's provision of high-speed fiber optic internet and traditional landline telephone services. Its communication-related offerings and merchandise are promoted under well-known brand names such as AT&T, Cricket, AT&T PREPAID, and AT&T Fiber. The Latin America segment is responsible for delivering wireless communication services within Mexico, as well as video entertainment services across the wider Latin American region. These services and products are branded as AT&T and Unefon. Established in 1983 and headquartered in Dallas, Texas, the corporation was previously known as SBC Communications Inc. and officially adopted the name AT&T Inc. in 2005.
- Sector
- Communication Services
- Industry
- Telecommunications Services
- CEO
- John T. Stankey