Market Pulse50Neutral

AT&T Inc.Opportunity Rank #150(T) Intrinsic Value & DCF Analysis (2026)

Current Price

$28.76

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$28.76
Price
$119.60
Intrinsic Value
Undervalued by 316%MOS: $95.68

Fundamental Score

49/100
Bearish

Weighted across 6 signals

Narrative Score

80/100
Strong

No change vs previous

The intrinsic value of AT&T Inc. (T) is estimated at $119.60 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $28.76, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 1.27% long-term growth rate and an 8.00% discount rate (calculated: 6.29%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of AT&T Inc. (T) is estimated at $119.60 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $28.76, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 1.27% long-term growth rate and an 8.00% discount rate (calculated: 6.29%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$119.60
▲ 315.86% upside
20% margin of safety: $95.68
Years: 10Growth Rate: 1.27%
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Capital Efficiency

Average Quarterly ROIC
3.17%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

49/100
BearishWeighted across 6 signals
DCF Discount
315.9% discount to price
100
FCF Yield
30.0% trailing FCF yield
100
ROIC vs WACC
ROIC 3.2% vs WACC 11.0% (0.3x)
14
Net Debt / FCF
2.2x net debt to FCF
23
Buybacks
Share count growing
30
FCF CAGR (5Y)
0.8% 5Y FCF CAGR
25
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

80/100
Strong
Vs 6-Month Baseline:Above Avg (75th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 95%Updated: 1h ago
Sources: 180 (175 News · 5 Analyst)
Drivers(last 30 days)
120 news sentiment+1.9
44 regulatory scrutiny+1.5
2 legal risk-0.1
4 upgrade headlines+0.1
2 earnings beat+0.0
Margin pressure+0.0

Investment Coach

Updated 14h ago
BUYConfidence: 55%
Thesis
AT&T Inc. is significantly undervalued with an estimated fair value over 300% above its current price, supported by a strong free cash flow yield of 30% and an improving narrative score. Despite trailing returns relative to its cost of capital, the company's valuation and cash flow metrics suggest substantial upside potential.
Key Risk
The key risk is the negative spread between ROIC and WACC, indicating returns are currently below the cost of capital.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 1.27%5 Year CAGR: 0.89%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$61,126$61,126$59,034$56,167$51,649$58,484$58,805$68,103$64,360$58,657$60,860$55,098$52,537$55,740$58,641$54,758$54,523$51,040$53,332$51,789$23,935

How Intrinziq Estimates Fair Value

Intrinziq estimates AT&T Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

AT&T Inc.Communication Services

AT&T Inc. provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying cases and hands-free devices through its own company-owned stores, agents, and third-party retail stores. It also provides data, voice, security, cloud solutions, outsourcing, and managed and professional services, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers. In addition, this segment offers broadband fiber and legacy telephony voice communication services to residential customers. It markets its communications services and products under the AT&T, Cricket, AT&T PREPAID, and AT&T Fiber brand names. The company's Latin America segment provides wireless services in Mexico; and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brand names. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005. AT&T Inc. was incorporated in 1983 and is headquartered in Dallas, Texas.