T
AT&T Inc.
$21.91
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 52.5% below fair value
You pay
$21.91
Bear
$36.92
Fair
$46.16
Bull
$55.39
Bear
$36.92
+68.5%
$3.04 × 12x P/E
Fair
$46.16
+110.7%
$3.04 × 15x P/E
Bull
$55.39
+152.8%
$3.04 × 18x P/E
Adjust Assumptions
15.2x
3.04$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
7.2x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (62 analysts)
$27.39
Divergence from AlphaVal
69%
Summary
Applying a 15x P/E to adjusted EPS of $3.04, the base-case value is $46.16 per share.
Warnings
Wall Street's average price target is $27.39 (from 62 analysts). Our estimate is 69% above the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples