Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
AT&T Inc., current price multiples
| AT&T Inc. | T-Mobile US Inc. | Verizon Communications Inc. | Telecommunication Services | Communication Services | ||||
|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||
| Current share price (P) | $28.87 | |||||||
| No. shares of common stock outstanding | 7,000,577,201 | |||||||
| Growth rate (g) | 5.59% | |||||||
| Earnings per share (EPS) | $3.13 | |||||||
| Next year expected EPS | $3.30 | |||||||
| Operating profit per share | $3.45 | |||||||
| Sales per share | $17.95 | |||||||
| Book value per share (BVPS) | $15.79 | |||||||
| Valuation Ratios (Price Multiples) | ||||||||
| Price to earnings (P/E) | 9.23 | 21.18 | 12.50 | 12.98 | 22.05 | |||
| Price to next year expected earnings | 8.74 | 19.39 | 11.72 | 12.25 | 18.88 | |||
| Price-earnings-growth (PEG) | 1.65 | 2.30 | 1.87 | 2.19 | 1.31 | |||
| Price to operating profit (P/OP) | 8.36 | 12.73 | 7.34 | 9.06 | 19.05 | |||
| Price to sales (P/S) | 1.61 | 2.64 | 1.55 | 1.84 | 5.17 | |||
| Price to book value (P/BV) | 1.83 | 3.93 | 2.06 | 2.37 | 5.53 | |||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
AT&T Inc., historical price multiples
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The valuation ratios exhibit varied trends over the five-year period. Several ratios demonstrate fluctuations, while others show a degree of consistency. Overall, the period suggests a dynamic valuation landscape.
- Price to Earnings (P/E)
- The Price to Earnings ratio began at 8.60 in 2021, experienced a missing value in 2022, then registered at 8.47 in 2023. A significant increase to 16.94 was observed in 2024, followed by a decrease to 8.67 in 2025, returning to a level comparable to the initial value. This suggests considerable volatility in investor sentiment regarding earnings.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, the Price to Operating Profit ratio has a missing value for 2022. It started at 7.32 in 2021, decreased to 5.12 in 2023, increased substantially to 9.56 in 2024, and then decreased to 7.85 in 2025. This pattern mirrors the P/E ratio’s fluctuations, indicating a connection between market valuation and operating profitability.
- Price to Sales (P/S)
- The Price to Sales ratio shows a generally increasing trend. It began at 1.01 in 2021, rose to 1.14 in 2022, slightly decreased to 0.98 in 2023, and then increased to 1.49 in 2024 and 1.51 in 2025. This indicates investors were willing to pay more for each dollar of revenue generated over time.
- Price to Book Value (P/BV)
- The Price to Book Value ratio demonstrates an upward trend with some fluctuation. It started at 1.03 in 2021, increased to 1.41 in 2022, decreased to 1.16 in 2023, and then rose to 1.74 in 2024, remaining relatively stable at 1.72 in 2025. This suggests an increasing premium placed on the company’s net asset value by the market.
The absence of values for certain ratios in 2022 introduces a limitation to the analysis. The significant increases observed in the P/E and P/OP ratios in 2024 warrant further investigation to understand the underlying drivers of this change.
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Price to Earnings (P/E)
AT&T Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 7,000,577,201 | 7,178,183,000 | 7,152,792,253 | 7,129,870,323 | 7,142,892,741 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to common stock (in millions) | 21,889) | 10,746) | 14,192) | (8,727) | 19,874) | |
| Earnings per share (EPS)2 | 3.13 | 1.50 | 1.98 | -1.22 | 2.78 | |
| Share price1, 3 | 27.11 | 25.36 | 16.80 | 19.26 | 23.94 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 8.67 | 16.94 | 8.47 | — | 8.60 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| T-Mobile US Inc. | 21.00 | 23.46 | 23.09 | 69.44 | 51.43 | |
| Verizon Communications Inc. | 12.02 | 9.75 | 14.38 | 7.91 | 10.14 | |
| P/E Ratio, Sector | ||||||
| Telecommunication Services | 12.53 | 15.63 | 14.04 | 32.09 | 12.24 | |
| P/E Ratio, Industry | ||||||
| Communication Services | 25.05 | 23.64 | 24.04 | 25.67 | 21.27 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income (loss) attributable to common stock ÷ No. shares of common stock outstanding
= 21,889,000,000 ÷ 7,000,577,201 = 3.13
3 Closing price as at the filing date of AT&T Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 27.11 ÷ 3.13 = 8.67
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited considerable fluctuation over the observed period. Initial values decreased significantly before recovering, suggesting shifts in investor sentiment and earnings performance.
- Share Price
- The share price demonstrated a decline from $23.94 in 2021 to $16.80 in 2023. A subsequent recovery was observed, with the price reaching $25.36 in 2024 and further increasing to $27.11 in 2025.
- Earnings Per Share (EPS)
- Earnings per share experienced a notable downturn in 2022, resulting in a negative value of -$1.22. EPS rebounded to $1.98 in 2023 and continued to improve, reaching $1.50 in 2024 and $3.13 in 2025. This indicates a recovery in profitability.
- Price to Earnings (P/E) Ratio
- The P/E ratio began at 8.60 in 2021. A value for 2022 is absent, likely due to the negative earnings per share reported for that year, rendering the ratio meaningless. The ratio was 8.47 in 2023, then increased substantially to 16.94 in 2024, reflecting the combination of a rising share price and relatively stable earnings. The P/E ratio decreased to 8.67 in 2025, despite the increase in share price, due to the significant growth in earnings per share.
The interplay between share price and earnings per share significantly influenced the P/E ratio. The absence of a P/E ratio calculation in 2022 highlights the impact of negative earnings on valuation metrics. The increase in the P/E ratio in 2024 suggests investors were willing to pay a higher premium for each dollar of earnings, while the decrease in 2025 indicates a potential recalibration of valuation expectations relative to earnings growth.
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Price to Operating Profit (P/OP)
AT&T Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 7,000,577,201 | 7,178,183,000 | 7,152,792,253 | 7,129,870,323 | 7,142,892,741 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | 24,162) | 19,049) | 23,461) | (4,587) | 23,347) | |
| Operating profit per share2 | 3.45 | 2.65 | 3.28 | -0.64 | 3.27 | |
| Share price1, 3 | 27.11 | 25.36 | 16.80 | 19.26 | 23.94 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 7.85 | 9.56 | 5.12 | — | 7.32 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| T-Mobile US Inc. | 12.63 | 14.77 | 13.46 | 27.49 | 22.56 | |
| Verizon Communications Inc. | 7.05 | 5.95 | 7.30 | 5.52 | 6.90 | |
| P/OP Ratio, Sector | ||||||
| Telecommunication Services | 8.75 | 9.41 | 7.91 | 14.96 | 8.78 | |
| P/OP Ratio, Industry | ||||||
| Communication Services | 21.64 | 18.94 | 18.02 | 17.59 | 17.72 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 24,162,000,000 ÷ 7,000,577,201 = 3.45
3 Closing price as at the filing date of AT&T Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 27.11 ÷ 3.45 = 7.85
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibited considerable fluctuation over the observed period. Initial values decreased significantly before stabilizing and then increasing again. A detailed examination of the ratio’s behavior, alongside its constituent components, reveals key insights into the valuation dynamics.
- Share Price
- The share price demonstrated a decline from $23.94 in 2021 to $16.80 in 2023. A subsequent recovery was observed, with the price reaching $25.36 in 2024 and further increasing to $27.11 in 2025. This indicates a period of investor pessimism followed by renewed confidence.
- Operating Profit Per Share
- Operating profit per share experienced a substantial decrease in 2022, registering a negative value of -$0.64. This was followed by a recovery to $3.28 in 2023, and a slight decrease to $2.65 in 2024. Further improvement was noted in 2025, with operating profit per share reaching $3.45. The volatility suggests underlying operational challenges and subsequent improvements.
- P/OP Ratio
- The P/OP ratio began at 7.32 in 2021. A value for 2022 is absent, likely due to the negative operating profit per share. The ratio then stood at 5.12 in 2023, increased to 9.56 in 2024, and decreased slightly to 7.85 in 2025. The increase in 2024 coincided with the share price recovery and a moderate increase in operating profit per share. The slight decrease in 2025 suggests a potential stabilization of valuation relative to operating performance.
The absence of a P/OP ratio calculation for 2022 is a direct consequence of the negative operating profit per share, rendering the ratio meaningless in that year. The overall trend suggests that the market valuation, as reflected by the P/OP ratio, is sensitive to both the share price and the underlying operating profitability. The fluctuations observed warrant further investigation into the factors driving both components.
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Price to Sales (P/S)
AT&T Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 7,000,577,201 | 7,178,183,000 | 7,152,792,253 | 7,129,870,323 | 7,142,892,741 | |
| Selected Financial Data (US$) | ||||||
| Operating revenues (in millions) | 125,648) | 122,336) | 122,428) | 120,741) | 168,864) | |
| Sales per share2 | 17.95 | 17.04 | 17.12 | 16.93 | 23.64 | |
| Share price1, 3 | 27.11 | 25.36 | 16.80 | 19.26 | 23.94 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.51 | 1.49 | 0.98 | 1.14 | 1.01 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| T-Mobile US Inc. | 2.61 | 3.27 | 2.44 | 2.26 | 1.94 | |
| Verizon Communications Inc. | 1.49 | 1.27 | 1.25 | 1.23 | 1.68 | |
| P/S Ratio, Sector | ||||||
| Telecommunication Services | 1.78 | 1.83 | 1.43 | 1.44 | 1.44 | |
| P/S Ratio, Industry | ||||||
| Communication Services | 5.87 | 4.95 | 4.00 | 2.93 | 3.98 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Operating revenues ÷ No. shares of common stock outstanding
= 125,648,000,000 ÷ 7,000,577,201 = 17.95
3 Closing price as at the filing date of AT&T Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 27.11 ÷ 17.95 = 1.51
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited fluctuations over the five-year period. Initially, the ratio increased before stabilizing and then rising again. Share price and sales per share both experienced volatility during the observed timeframe, influencing the overall P/S ratio.
- Price-to-Sales Ratio Trend
- The P/S ratio began at 1.01 in 2021, increasing to 1.14 in 2022. It then decreased slightly to 0.98 in 2023, before increasing substantially to 1.49 in 2024 and holding relatively steady at 1.51 in 2025. This suggests a growing investor willingness to pay for each dollar of sales generated by the company in the later years of the period.
- Share Price Behavior
- The share price decreased from US$23.94 in 2021 to US$19.26 in 2022, and further declined to US$16.80 in 2023. A significant recovery was observed in 2024, with the share price rising to US$25.36, and continued to increase modestly to US$27.11 in 2025. This volatility in share price directly impacts the P/S ratio.
- Sales per Share Dynamics
- Sales per share decreased from US$23.64 in 2021 to US$16.93 in 2022. It showed a slight increase to US$17.12 in 2023, followed by a minor decrease to US$17.04 in 2024, and then increased to US$17.95 in 2025. The relative stability of sales per share in the latter part of the period, coupled with the increasing share price, contributed to the rising P/S ratio.
The combined effect of share price and sales per share movements resulted in the observed P/S ratio trend. The increase in the P/S ratio in 2024 and 2025 indicates that the market valuation of the company’s sales grew relative to its share price, potentially reflecting improved investor sentiment or expectations for future growth.
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Price to Book Value (P/BV)
AT&T Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 7,000,577,201 | 7,178,183,000 | 7,152,792,253 | 7,129,870,323 | 7,142,892,741 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity attributable to AT&T (in millions) | 110,533) | 104,372) | 103,297) | 97,500) | 166,332) | |
| Book value per share (BVPS)2 | 15.79 | 14.54 | 14.44 | 13.67 | 23.29 | |
| Share price1, 3 | 27.11 | 25.36 | 16.80 | 19.26 | 23.94 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 1.72 | 1.74 | 1.16 | 1.41 | 1.03 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| T-Mobile US Inc. | 3.90 | 4.31 | 2.97 | 2.58 | 2.25 | |
| Verizon Communications Inc. | 1.98 | 1.72 | 1.81 | 1.84 | 2.74 | |
| P/BV Ratio, Sector | ||||||
| Telecommunication Services | 2.29 | 2.33 | 1.84 | 1.88 | 1.73 | |
| P/BV Ratio, Industry | ||||||
| Communication Services | 6.28 | 5.56 | 4.54 | 3.41 | 4.32 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Stockholders’ equity attributable to AT&T ÷ No. shares of common stock outstanding
= 110,533,000,000 ÷ 7,000,577,201 = 15.79
3 Closing price as at the filing date of AT&T Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 27.11 ÷ 15.79 = 1.72
5 Click competitor name to see calculations.
The price to book value ratio exhibited fluctuations over the five-year period. Initially, the ratio demonstrated an increase followed by a period of relative stability, and then a subsequent rise. A detailed examination of the components and the resulting ratio is presented below.
- Share Price
- The share price decreased from US$23.94 in 2021 to US$19.26 in 2022, representing a decline of approximately 19.6%. A further decrease was observed in 2023, reaching US$16.80. However, the share price experienced a significant recovery in 2024, increasing to US$25.36, and continued to rise modestly in 2025, closing at US$27.11.
- Book Value Per Share
- The book value per share experienced a substantial decrease from US$23.29 in 2021 to US$13.67 in 2022, a decline of over 41%. The book value per share showed modest increases in subsequent years, reaching US$14.44 in 2023, US$14.54 in 2024, and US$15.79 in 2025. While increasing, the book value per share did not return to its 2021 level during the analyzed period.
- Price to Book Value Ratio
- The price to book value ratio began at 1.03 in 2021, increasing to 1.41 in 2022. This increase occurred despite the decline in share price, primarily due to the more significant decrease in book value per share. The ratio then decreased slightly to 1.16 in 2023. A notable increase was observed in 2024, with the ratio reaching 1.74, driven by the substantial increase in share price. The ratio stabilized in 2025 at 1.72, indicating a leveling off of the price premium relative to book value.
The observed fluctuations in the price to book value ratio suggest a dynamic relationship between market perception of the company’s value and its underlying net asset value. The increase in the ratio in 2024 and 2025 may indicate growing investor confidence, despite the book value per share remaining below its 2021 level.
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