AT&T INC. (TBB)
Telephone Communications (No Radiotelephone)
Latest Price
$19.46
TTM P/E
6.47
Normalized P/E
12.04
Div Yield
5.70%
Book Value
18.12
P/B Ratio
1.07
Valuation metrics
adjust assumptions →Norm. op. income: $23.3B (median of 7yr)
Tax rate: 20%
Discount rate: 10%
Growth assumption: zero (EPV is a no-growth value)
Earnings Power Value
$8.44
57% downside
Base FCF: $19.4B (median of recent 5yr)
Growth: -7%/yr (median YOY, capped at 25%)
Discount rate: 10%
Terminal growth: 3%
Projection horizon: 10 years
DCF Fair Value
$2.37
88% downside
EPS: $3.04
Target P/E: 12×
Formula: EPS × P/E
P/E Fair Value
$36.48
+87% upside