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AT&T’s Valuation in January 2018

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Dec. 4 2020, Updated 10:52 a.m. ET

AT&T’s scale

As of January 9, 2018, AT&T’s (T) market capitalization was ~$230.2 billion, making it the largest US wireless service provider in terms of market capitalization. In comparison, Verizon’s (VZ) market capitalization was ~$210.5 billion, T-Mobile’s (TMUS) was ~$54.6 billion, and Sprint’s (S) was ~$22.8 billion.

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Bollinger Band

AT&T stock closed at $37.49 on January 9, near its lower Bollinger Band of $37.15, suggesting that the stock is oversold. Investors may see this as a signal to buy.

Short interest ratio

As of January 9, 2018, AT&T stock’s short interest as a percentage of float (or short interest ratio) was ~5.1%. A stock having a short interest ratio of more than 40% suggests to investors and traders that its price may correct.

AT&T’s valuation metrics

As of January 9, 2018, AT&T was trading at a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of ~6.6x. In contrast, Sprint, Verizon, and T-Mobile had forward EV-to-EBITDA multiples of ~4.6x, ~7.0x, and ~7.1x, respectively. AT&T was trading at a forward PE (price-to-earnings) multiple of ~12.7x, whereas Verizon and T-Mobile had forward PE multiples of ~13.1x and ~22.8x, respectively.

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