uploads///Telecom Q Market Capitalization

How AT&T’s Valuation Multiple Compares to Its Peers’


May. 15 2019, Updated 1:43 p.m. ET

AT&T’s scale

On May 13, AT&T’s (T) market cap was $222.4 billion. AT&T is the second-largest US wireless carrier in terms of market cap.

T-Mobile’s (TMUS) market cap was $62.7 billion, and Sprint’s (S) market cap was $24.6 billion.

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Forward EV-to-EBITDA valuation

On May 13, AT&T had a trailing-12-month EV-to-EBITDA multiple of 6.61x. In comparison, peers T-Mobile and Sprint had trailing-12-month EV-to-EBITDA multiples of 7.61x and 4.50x, respectively. On May 13, AT&T was trading at a 12-month forward EV-to-EBITDA ratio of 6.62x. T-Mobile’s and Sprint’s 12-month forward EV-to-EBITDA ratios were 6.88x and 4.65x, respectively.

Forward PE

On May 13, AT&T was trading at a 12-month forward PE ratio of 8.46x, while T-Mobile’s 12-month forward PE ratio was 17.34x. A company’s PE ratio represents the amount investors are willing to pay per dollar of its EPS.

Analysts’ earnings estimates

For 2019, AT&T’s adjusted EPS are expected to be $3.58, reflecting a ~1.7% rise on a YoY (year-over-year) basis. T-Mobile’s adjusted EPS are expected to be $3.95 in 2019, reflecting a ~17.6% rise on a YoY basis. Analysts expect Sprint to report adjusted EPS of $0.02 in fiscal 2019, which will end in March 2020.


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