Using the industry peer median P/E multiple (trailing + forward), AT&T Inc. (T) has a fair value of $30.92 based on 5 comparable companies in the Telecommunications Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| AT&T Inc.T | 208,586 | 9.6x | 12.7x |
| T-Mobile US, Inc.TMUS | 237,056 | 21.8x | 20.4x |
| Verizon Communications Inc.VZ | 214,385 | 12.5x | 10.4x |
| The Walt Disney CompanyDIS | 168,374 | 13.9x | 14.4x |
| Comcast CorporationCMCSA | 104,780 | 5.3x | 7.8x |
| Charter Communications, Inc.CHTR | 27,684 | 6.0x | 5.0x |
| Industry Median | 12.5x | 10.4x | |
| (*) Profit after tax | 21,889 | 16,414 | |
| Equity Value | 274,044 | 169,949 | |
| (/) Outstanding shares | 7,179 | 7,179 | |
| Fair Price | $38 | $24 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.