DCF Tool

T

AT&T, Inc. – Telecommunications Resellers
AT&T Inc. is a diversified, global leader in telecommunications, media and entertainment, and technology. AT&T Communications provides more than 100 million U.S. consumers with entertainment and communications experiences across TV, mobile and broadband. Plus, it serves high-speed, highly secure connectivity and smart solutions to nearly 3 million business customers. WarnerMedia is a leading media and entertainment company that creates and distributes premium and popular content to global audiences through its consumer brands, including: HBO, HBO Max, Warner Bros., TNT, TBS, truTV, CNN, DC Entertainment, New Line, Cartoon Network, Adult Swim and Turner Classic Movies. Xandr, now part of WarnerMedia, provides marketers with innovative and relevant advertising solutions for consumers around premium video content and digital advertising through its platform. AT&T Latin America provides pay-TV services across 10 countries and territories in Latin America and the Caribbean and wireless services to consumers and businesses in Mexico. AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information is available at about.att.com. © 2020 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
Analysis Results
Intrinsic Value $118.21
Latest Price $20.40
Relative Value 83% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 13.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 43.4 39.8
2023 49.3 41.5
2024 56.1 43.3
2025 63.7 45.1
2026 72.5 47.1
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1060 billion. This corresponds to a present value of 629 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 217 billion. Adding in the terminal value gives a total present value of 846 billion.

There are presently 7.16 billion outstanding shares, so the intrinsic value per share is 118.21.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 59,997,000,000
Current Cash 21,169,000,000
Current Liabilities 85,588,000,000
Current Debt 25,875,000,000
Non-Cash Working Capital (NCWC) -20,885,000,000
Change in NCWC -3,185,000,000
EBIT 28,882,000,000
Tax Provision 5,468,000,000
Depreciation and Amortization 33,868,000,000
Capital Expenditure -16,527,000,000
Unlevered Free Cash Flow 37,177,355,920
Current Assets 52,008,000,000
Current Cash 9,740,000,000
Current Liabilities 63,438,000,000
Current Debt 3,470,000,000
Non-Cash Working Capital (NCWC) -17,700,000,000
Change in NCWC -3,258,000,000
EBIT 25,380,000,000
Tax Provision 965,000,000
Depreciation and Amortization 28,516,000,000
Capital Expenditure -15,675,000,000
Unlevered Free Cash Flow 34,963,000,000
Current Assets 54,761,000,000
Current Cash 12,130,000,000
Current Liabilities 68,911,000,000
Current Debt 11,838,000,000
Non-Cash Working Capital (NCWC) -14,442,000,000
Change in NCWC -6,500,000,000
EBIT 29,419,000,000
Tax Provision 3,493,000,000
Depreciation and Amortization 28,217,000,000
Capital Expenditure -19,435,000,000
Unlevered Free Cash Flow 26,136,750,108
Current Assets 51,427,000,000
Current Cash 5,204,000,000
Current Liabilities 64,420,000,000
Current Debt 10,255,000,000
Non-Cash Working Capital (NCWC) -7,942,000,000
Change in NCWC 6,425,000,000
EBIT 26,094,000,000
Tax Provision 4,920,000,000
Depreciation and Amortization 28,430,000,000
Capital Expenditure -20,758,000,000
Unlevered Free Cash Flow 35,029,480,279
Current Assets 79,146,000,000
Current Cash 50,498,000,000
Current Liabilities 81,389,000,000
Current Debt 38,374,000,000
Non-Cash Working Capital (NCWC) -14,367,000,000
Change in NCWC -6,204,000,000
EBIT 23,735,000,000
Tax Provision -14,708,000,000
Depreciation and Amortization 24,387,000,000
Capital Expenditure -20,647,000,000
Unlevered Free Cash Flow 21,271,000,000
Current Assets 38,369,000,000
Current Cash 5,788,000,000
Current Liabilities 50,576,000,000
Current Debt 9,832,000,000
Non-Cash Working Capital (NCWC) -8,163,000,000
Change in NCWC 1,146,000,000
EBIT 24,806,000,000
Tax Provision 6,479,000,000
Depreciation and Amortization 25,847,000,000
Capital Expenditure -21,516,000,000
Unlevered Free Cash Flow 22,170,842,014
Current Assets 35,992,000,000
Current Cash 5,121,000,000
Current Liabilities 47,816,000,000
Current Debt 7,636,000,000
Non-Cash Working Capital (NCWC) -9,309,000,000
Change in NCWC 382,000,000
EBIT 24,864,000,000
Tax Provision 7,005,000,000
Depreciation and Amortization 22,016,000,000
Capital Expenditure -19,218,000,000
Unlevered Free Cash Flow 19,626,625,169
Current Assets 32,028,000,000
Current Cash 10,493,000,000
Current Liabilities 37,282,000,000
Current Debt 6,056,000,000
Non-Cash Working Capital (NCWC) -9,691,000,000
Change in NCWC -51,000,000
EBIT 14,041,000,000
Tax Provision 3,442,000,000
Depreciation and Amortization 18,273,000,000
Capital Expenditure -21,199,000,000
Unlevered Free Cash Flow 6,211,678,514
Current Assets 23,196,000,000
Current Cash 3,339,000,000
Current Liabilities 34,995,000,000
Current Debt 5,498,000,000
Non-Cash Working Capital (NCWC) -9,640,000,000
Change in NCWC 909,000,000
EBIT 31,121,000,000
Tax Provision 9,224,000,000
Depreciation and Amortization 18,395,000,000
Capital Expenditure -20,944,000,000
Unlevered Free Cash Flow 19,146,546,891
Current Assets 22,706,000,000
Current Cash 4,954,000,000
Current Liabilities 31,787,000,000
Current Debt 3,486,000,000
Non-Cash Working Capital (NCWC) -10,549,000,000
Change in NCWC -2,901,000,000
EBIT 13,749,000,000
Tax Provision 2,900,000,000
Depreciation and Amortization 18,143,000,000
Capital Expenditure -19,465,000,000
Unlevered Free Cash Flow 5,706,467,477

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.