Enterprise value of AT&T and its peers
The enterprise value of AT&T (T) is $356.2 billion. With the help of enterprise value, investors can gain a comprehensive understanding of a company’s value. This metric can be used as an alternative to measure a company’s market valuation.
How does AT&T’s EV compare with its adjusted EBITDA[1. adjusted earnings before interest, tax, depreciation, and amortization] for the last 12 months? The company has EV-to-adjusted-trailing-12-month-EBITDA multiple of 7.2x. Its EV-to-EBITDA[2. enterprise value to earnings before interest, tax, depreciation, and amortization] for the current year is projected to be 6.8x.
A deeper look into AT&T’s EV ratios reveals that its EV-to-sales for the last one-year period was 2.2x. The EV-to-projected sales for 2018 totaled 2.2x.
The company’s trailing 12-month EV-to-cash-flow multiple was 8.8x, and its trailing 12-month EV-to-free cash flow to the company was 20.0x.
AT&T’s credit rating
Moody’s Investor Services’ rating on AT&T’s debt is WR (“withdrawn rating”). The company also has a Standard & Poor’s debt rating and debt outlook of BBB+ and “stable,” respectively.
Eye on AT&T’s price multiple
AT&T’s book value per share works out to $20.10, while its estimated book value per share is $19.80. The stock is trading at a price-to-book value of 1.9x.
The company’s current price-to-sales multiple is ~1.5x, and its estimated price-to-sales ratio is ~1.5x.