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Analyzing AT&T’s Valuation Compared to T-Mobile

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AT&T’s stock performance

AT&T (T) closed at $31.68 on June 5, which was 0.6% higher than its previous closing price, 18.2% higher than its 52-week low of $26.80, and 8.3% below its 52-week high of $34.53. AT&T’s market capitalization was $234.3 billion, while its 12-month forward PE ratio and EV-to-EBITDA multiple were 8.93x and 6.82x, respectively.

Based on AT&T’s closing price on June 5, the company has reported returns of -0.7% in the last five trading days, 3.2% in the trailing one-month period, and -3.1% in the trailing 12-month period. The company has reported returns of 11.0% year-to-date.

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T-Mobile’s stock performance

T-Mobile (TMUS) closed at $76.29 on June 5, which was 0.8% higher than its previous closing price, 33.9% higher than its 52-week low of $56.98, and 5.7% below its 52-week high of $80.93. T-Mobile’s market capitalization was $64.9 billion, while its 12-month forward PE ratio and EV-to-EBITDA multiple were 17.61x and 7.02x, respectively.

Based on T-Mobile’s closing price on June 5, the company has reported returns of 0.2% in the last five trading days, 2.1% in the trailing one-month period, and 33.5% in the trailing 12-month period. The company has reported returns of 19.9% year-to-date.

 

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Analysts’ recommendations and target prices

Among the 29 analysts covering AT&T stock, 14 recommended a “buy,” 13 recommended a “hold,” and two recommended a “sell.” Analysts’ 12-month mean target price on the stock is $33.80, which is 6.7% higher than its closing price on June 5. The lowest target price estimate for the company is $21, while the highest target price estimate is $43.

Among the 21 analysts covering T-Mobile stock, 18 recommended a “buy,” while three recommended a “hold.” None of the analysts recommended a “sell.” Analysts’ 12-month mean target price is $83.00, which is 8.8% higher than its closing price on June 5. The lowest target price estimate for the company is $71, while the highest target price estimate is $104.

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