Stock Analysis on Net

AT&T Inc. (NYSE:T)

Enterprise Value to FCFF (EV/FCFF) 

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

AT&T Inc., FCFF calculation

US$ in millions

Microsoft Excel
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).

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.

Interest Paid, Net of Tax

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

US$ in millions

Microsoft Excel
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


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 303,471
Free cash flow to the firm (FCFF) 26,949
Valuation Ratio
EV/FCFF 11.26
Benchmarks
EV/FCFF, Competitors1
T-Mobile US Inc. 35.71
Verizon Communications Inc. 19.81
EV/FCFF, Sector
Telecommunication Services 18.25
EV/FCFF, Industry
Communication Services 26.07

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.


Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel
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.

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.