Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 4.0% dividend yield, AT&T Inc. has a fair value of $18.29 based on NTM EPS (FY2026) of $2.29. The current PEG ratio is 2.08.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 2.1% |
| Dividend Yield | +4.0% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $2.29 |
| Fair Value | $18.29 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.04 | — | — |
| FY2026E | $2.29 | -24.8% | 18 |
| FY2027E | $2.53 | +10.4% | 17 |
| FY2028E | $2.85 | +12.7% | 14 |
| FY2029E | $3.09 | +8.5% | 9 |
| FY2030E | $3.38 | +9.4% | 13 |
5Y Forward EPS CAGR: 2.1%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $20.1B | $2.73 | — |
| FY2022 | $-8.5B | $-1.13 | -141.4% |
| FY2023 | $14.4B | $1.97 | — |
| FY2024 | $10.9B | $1.49 | -24.4% |
| FY2025 | $21.9B | $3.04 | +104.0% |
4Y Historical EPS CAGR: 2.7%