AT&T Inc.

LSE:0QZ1 Stock Report

Market Cap: US$175.6b

AT&T Valuation

Is 0QZ1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0QZ1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$86.27
Fair Value
71.8% undervalued intrinsic discount
26
Number of Analysts

Below Fair Value: 0QZ1 ($24.35) is trading below our estimate of fair value ($86.27)

Significantly Below Fair Value: 0QZ1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0QZ1?

Key metric: As 0QZ1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0QZ1. This is calculated by dividing 0QZ1's market cap by their current earnings.
What is 0QZ1's PE Ratio?
PE Ratio16.3x
EarningsUS$10.75b
Market CapUS$175.60b

Price to Earnings Ratio vs Peers

How does 0QZ1's PE Ratio compare to its peers?

The above table shows the PE ratio for 0QZ1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.1x
BT.A BT Group
19x17.1%UK£14.6b
VZ Verizon Communications
9.6x5.7%US$168.9b
DTE Deutsche Telekom
27x15.7%€161.7b
VOD Vodafone Group
8.8x1.6%UK£17.3b
0QZ1 AT&T
16.3x10.2%US$175.6b

Price-To-Earnings vs Peers: 0QZ1 is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

How does 0QZ1's PE Ratio compare vs other companies in the European Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0QZ1 16.3xIndustry Avg. 18.5xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0QZ1 is good value based on its Price-To-Earnings Ratio (16.3x) compared to the European Telecom industry average (18.1x).

Price to Earnings Ratio vs Fair Ratio

What is 0QZ1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0QZ1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.3x
Fair PE Ratio21.9x

Price-To-Earnings vs Fair Ratio: 0QZ1 is good value based on its Price-To-Earnings Ratio (16.3x) compared to the estimated Fair Price-To-Earnings Ratio (21.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0QZ1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$24.63
US$26.77
+8.7%
12.1%US$32.00US$15.49n/a26
Jan ’26US$22.65
US$25.77
+13.8%
16.0%US$32.50US$13.00n/a26
Dec ’25US$23.15
US$23.50
+1.5%
14.6%US$30.00US$13.00n/a25
Nov ’25US$22.40
US$23.28
+3.9%
15.1%US$30.00US$13.00n/a25
Oct ’25US$21.90
US$22.24
+1.6%
16.2%US$30.00US$12.00n/a25
Sep ’25US$19.78
US$21.50
+8.7%
16.4%US$29.00US$12.00n/a25
Aug ’25US$19.31
US$21.42
+10.9%
16.5%US$29.00US$12.00n/a25
Jul ’25US$18.92
US$20.42
+7.9%
18.2%US$29.00US$11.00n/a25
Jun ’25US$17.90
US$20.09
+12.2%
19.1%US$29.00US$11.00n/a24
May ’25US$17.00
US$20.07
+18.0%
18.8%US$29.00US$11.00n/a25
Apr ’25US$17.60
US$19.92
+13.2%
19.2%US$29.00US$11.00n/a25
Mar ’25US$16.95
US$19.84
+17.0%
20.0%US$29.00US$11.00n/a24
Feb ’25US$18.05
US$19.68
+9.0%
20.7%US$29.00US$11.00US$24.0024
Jan ’25US$16.75
US$18.55
+10.7%
22.9%US$28.00US$9.00US$22.6523
Dec ’24US$16.65
US$18.63
+11.9%
22.0%US$28.00US$9.00US$23.1523
Nov ’24US$15.55
US$18.56
+19.4%
22.8%US$28.00US$8.00US$22.4023
Oct ’24US$15.05
US$18.97
+26.0%
21.9%US$28.00US$8.00US$21.9023
Sep ’24US$14.70
US$19.19
+30.5%
20.9%US$28.00US$8.00US$19.7823
Aug ’24US$14.45
US$19.62
+35.8%
20.5%US$28.00US$8.00US$19.3123
Jul ’24US$15.85
US$21.23
+34.0%
17.7%US$28.00US$9.00US$18.9221
Jun ’24US$15.85
US$21.31
+34.5%
17.1%US$28.00US$9.00US$17.9022
May ’24US$17.50
US$21.38
+22.2%
17.4%US$28.00US$9.00US$17.0021
Apr ’24US$19.06
US$21.25
+11.5%
16.8%US$25.00US$9.00US$17.6020
Mar ’24US$18.62
US$21.19
+13.8%
16.5%US$25.00US$9.00US$16.9521
Feb ’24US$20.37
US$21.09
+3.5%
16.7%US$25.00US$9.00US$18.0521
Analyst Price Target
Consensus Narrative from 26 Analysts
US$26.64
Fair Value
8.6% undervalued intrinsic discount
26
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/06 13:54
End of Day Share Price 2025/02/06 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

AT&T Inc. is covered by 72 analysts. 24 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew Charles BealeArete Research Services LLP
Joseph BonnerArgus Research Company
Christopher WattsAtlantic Equities LLP