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General information
AT&T Inc. is a communications holding company. The Company, through its subsidiaries and affiliates, provides local and long-distance phone service, wireless and data communications, Internet access and messaging, IP-based and satellite television, security services, telecommunications equipment, and directory advertising and publishing.
  • Bad financial results growth rate -12.2% (average between last period year over year growth for revenue and EBITDA), there is slowdown compared to average historical growth rates (5.7%)
  • Dividend yield for the last twelve months 7.8%
  • Free cash flow yield 9.5% (LTM)
  • Share price is 0.0% higher than minimum and 33.1% lower than maximum for the last 3 years
  • The company is undervalued by EV / LTM EBITDA multiple compared to target level (7.0x vs 7.7x)
  • Fundamental value created in LTM (estimate) -48.9%
Key Financials
Ticker: T
Share price, USD: 26.5
Common stocks: 7 305 000 000
Dividend Yield:  7.8%
FCF Yield LTM: 9.5%
EV / LTM EBITDA: 7.0x
Last revenue growth (y/y):  -5.0%
Last growth of EBITDA (y/y):  -19.4%
Historical revenue growth:  2.9%
Historical growth of EBITDA:  8.5%
Target EV / EBITDA (hist 75% percentile): 7.7x
Fundamental value created in LTM: -48.9%
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 193 583
Net Debt ($m): 190 679
EV (Enterprise Value): 384 262
EBITDA LTM ($m): 55 146
EV / LTM EBITDA: 7.0x

Revenue and EBITDA

Quarterly values ($m)

Change (y/y)

Cash Flow

Free Cash Flow ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends

Share price

Payment USD per share

Multiple and potential

EV / LTM EBITDA and 75% percentile

Potential dynamics

Value Creation

Fundamental Value Creation is calculated as ratio of value created in the last period to current market cap of the company.

The fundamental value can be created in two ways:
• cash generation in form of dividend payments or debt reduction or share buybacks
• growth of the company enterprise value through improving financial results

The growth of enterprise value in the last period is estimated as product of:
• annualized increase of EBITDA in the last reporting period year over year
• relevant EV/EBITDA multiple (average between actual EV/EBITDA for the company and average general level of 10.0x is applied)

Parameter
#
Formula
Value
    
    
            EBITDA (pre LTM Q)
(1)
16 331
            EBITDA (last Q)
(2)
13 162
            EBITDA LTM
(3)
55 146
    
    
        EBITDA LTM / last Q
(4)
(3) / (2)
4.190
    Gain of EBITDA (mln $)
(5)
( (2)-(1) ) * (4)
-13 277
    
    
            EV
(6)
388 060
        Mult
(7)
(6) / (3)
7.0x
        Mult common
(8)
const
10.0x
    Mult avg
(9)
avgerage
8.5x
    
    
    Equity+
(10)
(5) * (9)
-113 104
    FCF LTM
(11)
18 443
    
    
Value+
(12)
(10) + (11)
-94 661
Cap
(13)
193 583
    
    
Fundamental value creation
(14)
(12) / (13)
-48.9%

Potential

EBITDA LTM       55 146
 
EBITDA E       54 303
Mult aim       7.7x
 
EV E       418 100
NetDebt corr       193 012
 
Cap E       225 088
Cap       193 583
Growth potential            16.3%