14 Nov

Keeping Up with the Changes in AT&T’s Valuation

WRITTEN BY Andrew Smith FEATURED IN Company News, Insights, & Analysis

AT&T’s scale

As of November 13, AT&T’s (T) market capitalization was $220.7 billion, making it the second-largest US wireless carrier. Verizon (VZ) had a market capitalization of $242.4 billion, T-Mobile (TMUS) had $58.0 billion, and Sprint (S) had $25.3 billion.

Keeping Up with the Changes in AT&T’s Valuation

Forward enterprise value–to–EBITDA valuation

On November 13, AT&T had a trailing-12-month enterprise value–to–EBITDA multiple of ~7.4x. Verizon, Sprint, and T-Mobile had multiples of ~7.6x, ~4.7x, and ~7.7x, respectively. AT&T expects its 2018 multiple to be ~7.1x and its 2019 multiple to be ~6.5x.

Forward PE valuation

AT&T is currently trading at a PE multiple of ~15.1x, which is lower than T-Mobile and Verizon at ~21.4x and ~15.7x, respectively. AT&T’s forward PE ratio for fiscal 2018 is ~8.6x and is estimated at ~8.5x for fiscal 2019. Verizon and T-Mobile have forward PE ratios of ~12.6x and ~20.6x, respectively, in their current fiscal years.

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