uploads///Telecom Q Market Capitalization

What Does AT&T’s Current Valuation Indicate?

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Apr. 22 2019, Published 8:11 a.m. ET

Forward PE

In this article, we’ll have a look at how AT&T (T) is valued ahead of its first-quarter earnings results. On April 17, AT&T was trading at a 12-month forward PE multiple of 8.88x. T-Mobile’s (TMUS), Verizon’s (VZ), and Sprint’s (S) 12-month forward PE multiples are 17.54x, 12.29x, and 132.15x, respectively.

A company’s PE ratio tells us the amount investors are willing to pay per dollar of its EPS.

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Forward EV-to-EBITDA

On April 17, AT&T had a trailing-12-month EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 7.10x compared to its peers T-Mobile, Verizon, and Sprint, which had trailing-12-month EV-to-EBITDA multiples of 7.67x, 7.40x, and 4.50x, respectively. On April 17, AT&T was trading at a 12-month forward EV-to-EBITDA ratio of 6.83x. T-Mobile’s, Verizon’s, and Sprint’s 12-month forward EV-to-EBITDA multiples were 6.82x, 7.18x, and 4.31x, respectively.

AT&T’s scale

On April 17, AT&T’s market cap was $232.7 billion, making it the second-largest US wireless carrier in terms of market cap. Verizon had a market cap of $238.8 billion, Sprint’s market cap was $23.0 billion, and T-Mobile’s market cap was $61.6 billion on the same day.

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