Market Pulse44Neutral

AT&T Inc.Opportunity Rank #167(T) Intrinsic Value & DCF Analysis (2026)

Current Price

$22.10

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$22.10
Price
$108.93
Intrinsic Value
Undervalued by 393%MOS: $87.14

Fundamental Score

54/100
Neutral

Weighted across 6 signals

Narrative Score

52/100
Weak

No change vs previous

Trend Score

15/100
Weak

As of 2026-06-22

The intrinsic value of AT&T Inc. (T) is estimated at $108.93 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $22.10, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 1.25% long-term growth rate and an 8.50% discount rate (calculated: 6.32%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of AT&T Inc. (T) is estimated at $108.93 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $22.10, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 1.25% long-term growth rate and an 8.50% discount rate (calculated: 6.32%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$108.93
392.90% upside
20% margin of safety: $87.14
Years: 10Growth Rate: 1.25%
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Capital Efficiency

Average Quarterly ROIC
3.08%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

54/100
NeutralWeighted across 6 signals
DCF Discount
392.9% discount to price
100
FCF Yield
39.2% trailing FCF yield
100
ROIC vs WACC
ROIC 3.1% vs WACC 11.0% (0.3x)
14
Net Debt / FCF
2.2x net debt to FCF
24
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
0.5% 5Y FCF CAGR
25
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

52/100
Weak
Vs 6-Month Baseline:Low (0th pct)Weighted across 6 recent drivers
Trend: Deteriorating downConfidence: 89%Updated: 0m ago
Sources: 121 (116 News · 5 Analyst)
Drivers(last 30 days)
100 news sentiment+0.5
3 downgrade headlines-0.2
11 regulatory scrutiny-0.1
Analyst downgrades-0.0
2 upgrade headlines+0.0
4 analyst reiterations0.0

Trend Details

15/100
WeakAs of 2026-06-22308 daily bars used
3M Relative Strength vs SPY-36.7%
6M Relative Strength vs SPY-20.1%
Price vs 50 EMA-10.1%
Price vs 21 EMA19 · -5.7%
Price vs 50 EMA11 · -10.1%
21 EMA vs 50 EMA17 · -4.6%
3M RS vs SPY0 · -36.7%
6M RS vs SPY10 · -20.1%
Distance from 52W High49 · -25.4%

Investment Coach

Updating... 12d ago
WATCHConfidence: 48%
Thesis
AT&T Inc. is significantly undervalued with an estimated fair value over 370% above its current price, supported by a strong free cash flow yield of 37.4%. However, returns are currently trailing the estimated cost of capital, indicating potential challenges in value creation.
Key Risk
The key risk is the company's return on invested capital (ROIC) remaining below its weighted average cost of capital (WACC), which could undermine long-term profitability and valuation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 1.25%5 Year CAGR: 0.59%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$60,234$61,126$59,034$56,167$51,649$58,484$58,805$68,103$64,360$58,657$60,860$55,098$52,537$55,740$58,641$54,758$54,523$51,040$53,332$51,789$23,935

How Intrinziq Estimates Fair Value

Intrinziq estimates AT&T Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

AT&T Inc.Communication Services

Globally, AT&T Inc. delivers an array of telecommunication, media, and technology offerings. Within its Communications division, the company supplies wireless voice and data communication services. It also markets mobile devices, such as smartphones, wireless data access cards, and portable computing gadgets, alongside accessories like protective cases and hands-free equipment. These products are distributed through AT&T's proprietary outlets, authorized agents, and external retail partners. Furthermore, this segment caters to a broad clientele including multinational corporations, small-to-medium-sized enterprises, government entities, and wholesale clients. For these customers, it delivers an extensive suite of services encompassing data, voice connectivity, cybersecurity, cloud-based solutions, outsourcing, and both managed and professional services, in addition to client-side equipment. Residential consumers also benefit from this division's provision of high-speed fiber optic internet and traditional landline telephone services. Its communication-related offerings and merchandise are promoted under well-known brand names such as AT&T, Cricket, AT&T PREPAID, and AT&T Fiber. The Latin America segment is responsible for delivering wireless communication services within Mexico, as well as video entertainment services across the wider Latin American region. These services and products are branded as AT&T and Unefon. Established in 1983 and headquartered in Dallas, Texas, the corporation was previously known as SBC Communications Inc. and officially adopted the name AT&T Inc. in 2005.