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T

AT&T, Inc. –
AT&T Inc. is an American multinational telecommunications holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the worlds third-largest telecommunications company by revenue and the third-largest provider of mobile telephone services in the U.S.
Analysis Results
Intrinsic Value $161.54
Latest Price $16.33
Relative Value 90% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 6.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.2%, 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)
2024 34.1 32.6
2025 36.3 33.0
2026 38.5 33.5
2027 40.9 33.9
2028 43.5 34.4
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 1300 billion. This corresponds to a present value of 984 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 167 billion. Adding in the terminal value gives a total present value of 1150 billion.

There are presently 7.13 billion outstanding shares, so the intrinsic value per share is 161.54.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 36,458,000,000
Current Cash 6,722,000,000
Current Liabilities 51,127,000,000
Current Debt 9,477,000,000
Non-Cash Working Capital (NCWC) -11,914,000,000
Change in NCWC 7,255,000,000
EBIT 26,329,000,000
Tax Provision 4,225,000,000
Depreciation and Amortization 18,777,000,000
Capital Expenditure -17,853,000,000
Unlevered Free Cash Flow 28,903,403,819
Current Assets 33,108,000,000
Current Cash 3,701,000,000
Current Liabilities 56,173,000,000
Current Debt 7,597,000,000
Non-Cash Working Capital (NCWC) -19,169,000,000
Change in NCWC 1,716,000,000
EBIT 24,702,000,000
Tax Provision 3,780,000,000
Depreciation and Amortization 18,021,000,000
Capital Expenditure -19,626,000,000
Unlevered Free Cash Flow 24,813,000,000
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

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