AT&T Valuation
Is T * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation 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 T * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: T * (MX$455) is trading below our estimate of fair value (MX$976.02)
Significantly Below Fair Value: T * is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for T *?
Key metric: As T * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is T *'s PE Ratio? | |
|---|---|
| PE Ratio | 18x |
| Earnings | US$8.85b |
| Market Cap | US$160.01b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.6x |
| Enterprise Value/EBITDA | 7.5x |
| PEG Ratio | 1x |
Price to Earnings Ratio vs Peers
How does T *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 37x | ||
SITES1 A-1 Operadora de Sites Mexicanos. de | 76.5x | 55.8% | Mex$46.8b |
AMX B América Móvil. de | 25.6x | 22.6% | Mex$961.4b |
VZ Verizon Communications | 17.6x | 15.6% | US$173.2b |
DTE Deutsche Telekom | 28.5x | 19.6% | €141.2b |
T * AT&T | 18x | 17.3% | Mex$160.0b |
Price-To-Earnings vs Peers: T * is good value based on its Price-To-Earnings Ratio (18x) compared to the peer average (37x).
Price to Earnings Ratio vs Industry
How does T *'s PE Ratio compare vs other companies in the Global Telecom Industry?
| 3 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 3 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: T * is expensive based on its Price-To-Earnings Ratio (18x) compared to the Global Telecom industry average (16.1x).
Price to Earnings Ratio vs Fair Ratio
What is T *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 18x |
| Fair PE Ratio | 41.6x |
Price-To-Earnings vs Fair Ratio: T * is good value based on its Price-To-Earnings Ratio (18x) compared to the estimated Fair Price-To-Earnings Ratio (41.6x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | Mex$455.00 | Mex$461.57 +1.4% | 15.1% | Mex$594.73 | Mex$257.71 | n/a | 25 |
| Nov ’25 | Mex$451.00 | Mex$469.68 +4.1% | 15.1% | Mex$605.18 | Mex$262.24 | n/a | 25 |
| Oct ’25 | Mex$432.98 | Mex$436.19 +0.7% | 16.2% | Mex$588.40 | Mex$235.36 | n/a | 25 |
| Sep ’25 | Mex$389.00 | Mex$411.87 +5.9% | 16.4% | Mex$555.48 | Mex$229.86 | n/a | 25 |
| Aug ’25 | Mex$366.00 | Mex$398.91 +9.0% | 16.5% | Mex$540.04 | Mex$223.46 | n/a | 25 |
| Jul ’25 | Mex$348.99 | Mex$375.05 +7.5% | 18.2% | Mex$532.59 | Mex$202.02 | n/a | 25 |
| Jun ’25 | Mex$307.04 | Mex$337.43 +9.9% | 19.1% | Mex$487.20 | Mex$184.80 | n/a | 24 |
| May ’25 | Mex$289.00 | Mex$343.65 +18.9% | 18.8% | Mex$496.68 | Mex$188.39 | n/a | 25 |
| Apr ’25 | Mex$290.42 | Mex$333.96 +15.0% | 19.2% | Mex$486.08 | Mex$184.37 | n/a | 25 |
| Mar ’25 | Mex$288.01 | Mex$340.24 +18.1% | 20.0% | Mex$497.42 | Mex$188.68 | n/a | 24 |
| Feb ’25 | Mex$307.01 | Mex$336.30 +9.5% | 20.7% | Mex$495.51 | Mex$187.95 | n/a | 24 |
| Jan ’25 | Mex$284.11 | Mex$313.69 +10.4% | 22.9% | Mex$473.54 | Mex$152.21 | n/a | 23 |
| Dec ’24 | Mex$286.10 | Mex$322.64 +12.8% | 22.0% | Mex$484.78 | Mex$155.82 | n/a | 23 |
| Nov ’24 | Mex$276.34 | Mex$335.16 +21.3% | 22.8% | Mex$505.50 | Mex$144.43 | Mex$451.00 | 23 |
| Oct ’24 | Mex$261.98 | Mex$324.84 +24.0% | 21.9% | Mex$479.53 | Mex$137.01 | Mex$432.98 | 23 |
| Sep ’24 | Mex$250.02 | Mex$327.16 +30.9% | 20.9% | Mex$477.44 | Mex$136.41 | Mex$389.00 | 23 |
| Aug ’24 | Mex$242.21 | Mex$330.85 +36.6% | 20.5% | Mex$472.12 | Mex$134.89 | Mex$366.00 | 23 |
| Jul ’24 | Mex$273.44 | Mex$362.61 +32.6% | 17.7% | Mex$478.16 | Mex$153.69 | Mex$348.99 | 21 |
| Jun ’24 | Mex$279.49 | Mex$383.05 +37.1% | 17.1% | Mex$503.22 | Mex$161.75 | Mex$307.04 | 22 |
| May ’24 | Mex$320.00 | Mex$384.43 +20.1% | 17.4% | Mex$503.44 | Mex$161.82 | Mex$289.00 | 21 |
| Apr ’24 | Mex$345.00 | Mex$399.99 +15.9% | 16.8% | Mex$470.58 | Mex$169.41 | Mex$290.42 | 20 |
| Mar ’24 | Mex$338.15 | Mex$398.00 +17.7% | 16.5% | Mex$469.66 | Mex$169.08 | Mex$288.01 | 21 |
| Feb ’24 | Mex$379.04 | Mex$396.40 +4.6% | 16.7% | Mex$469.88 | Mex$169.16 | Mex$307.01 | 21 |
| Jan ’24 | Mex$358.55 | Mex$393.68 +9.8% | 18.0% | Mex$488.33 | Mex$175.80 | Mex$284.11 | 22 |
| Dec ’23 | Mex$368.00 | Mex$408.74 +11.1% | 19.0% | Mex$558.40 | Mex$179.49 | Mex$286.10 | 23 |
| Nov ’23 | Mex$362.98 | Mex$408.74 +12.6% | 19.0% | Mex$558.40 | Mex$179.49 | Mex$276.34 | 23 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
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