AT&T Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss) attributable to AT&T	14,400)	(8,524)	20,081)	(5,176)	13,903)
Net income attributable to noncontrolling interest	1,223)	1,469)	1,398)	1,355)	1,072)
Net noncash charges	25,147)	44,716)	36,161)	60,268)	45,619)
Changes in operating assets and liabilities	(2,456)	(1,849)	(15,683)	(13,317)	(11,926)
Net cash provided by operating activities	38,314)	35,812)	41,957)	43,130)	48,668)
Cash paid during the year for interest, net of tax¹	5,800)	6,140)	6,115)	6,507)	7,050)
Capitalized interest, net of tax²	688)	1,022)	760)	97)	162)
Capital expenditures	(17,853)	(19,626)	(16,527)	(15,675)	(19,635)
Free cash flow to the firm (FCFF)	26,949)	23,348)	32,306)	34,059)	36,245)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the AT&T Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	AT&T Inc. FCFF decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

AT&T Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	21.30%	21.00%	20.30%	21.00%	18.90%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax	7,370)	7,772)	7,673)	8,237)	8,693)
Less: Cash paid during the year for interest, tax²	1,570)	1,632)	1,558)	1,730)	1,643)
Cash paid during the year for interest, net of tax	5,800)	6,140)	6,115)	6,507)	7,050)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	874)	1,294)	954)	123)	200)
Less: Capitalized interest, tax³	186)	272)	194)	26)	38)
Capitalized interest, net of tax	688)	1,022)	760)	97)	162)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² 2023 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 7,370 × 21.30% = 1,570

³ 2023 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 874 × 21.30% = 186

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AT&T Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	264,563)
Free cash flow to the firm (FCFF)	26,949)
Valuation Ratio
EV/FCFF	9.82
Benchmarks
EV/FCFF, Competitors¹
T-Mobile US Inc.	28.49
Verizon Communications Inc.	19.38
EV/FCFF, Sector
Telecommunication Services	16.10
EV/FCFF, Industry
Communication Services	23.79

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

AT&T Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	264,921)	278,467)	344,709)	369,254)	445,675)
Free cash flow to the firm (FCFF)²	26,949)	23,348)	32,306)	34,059)	36,245)
Valuation Ratio
EV/FCFF³	9.83	11.93	10.67	10.84	12.30
Benchmarks
EV/FCFF, Competitors⁴
T-Mobile US Inc.	28.48	218.70	—	—	—
Verizon Communications Inc.	19.38	23.20	—	13.85	16.70
EV/FCFF, Sector
Telecommunication Services	16.10	24.13	567.15	16.80	15.66
EV/FCFF, Industry
Communication Services	22.31	23.31	31.50	25.72	24.63

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 264,921 ÷ 26,949 = 9.83

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	AT&T Inc. EV/FCFF ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

AT&T Inc. (NYSE:T)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical