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ATT Stock Valuation

Valuation AT&T

2-17-2016 Current share price:36.64
Company Background
AT&T provides telecommunications services. Its services and products include wireless communications, internet services, video services, phone services.  Its subsidiary, DIRECTV provides television services.  AT&T operates in the United States and across the world.

The simplest valuation is to compare Analyst target to the current price.  The analyst target is only 2% above the current price.  The safety factor is 2%, which suggests limited upside potential remaining.

The next simplest measures are Graham valuations.  4 variations are used using different time tables for calculating EPS and EPS growth.  The dramatic changes in valuations imply large volatility in earnings suggesting large events are have impacted earnings.  These events need to be reconciled before Graham Valuation can be viewed reliably.

Relative valuations are based upon Historic Multiples.  For a slow growing, behemoth company such as T, buying at multiples less than the historic values represent a good value.  Based on historic multiples T is overvalued.

Intrinsic valuations include discounted cash flow (DCF), dividend discount model (DDM), and Earnings Power Value (EPV).  Two variations of EPV are used.  All models show that T is overvalued by at least 25%.

Technical Indicators
Simple Moving Average 
T is trading above its 200 day simple Moving average. The moving average is rising.  These are bullish indicators.

The indicator is above 0, which implies a bullish trend. The MACD has crossed below its 9-day moving which suggests that positive momentum has begun to slow.

On Balance Volume
The slope of the indicator is positive and suggests that there is considerable buying interest.


This website expresses my own opinion.   I am not a financial advisor.  All opinions, research, analyses, and other information provided on this website are provided as general market commentary and do not constitute investment advice. 

This post first appeared on Simple Stock Valuation, please read the originial post: here

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ATT Stock Valuation


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