AT&T - Comparative Multiple Analysis

AT&T (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of AT&T

WikiWealth compares AT&T's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with AT&T's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for AT&T.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to AT&T's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for AT&T's Analysis


How does this work? The Comparative Investment Analysis determines the value of AT&T by comparing AT&T financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of AT&T.

See the AT&T cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in AT&T.

Also, see the AT&T's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and AT&T's valuation conclusion for a quick summary.