The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $3,360 M
Debt : $145,900 M
EBITDA : $43,950 M
Net Debt (Debt - Cash): $142,540 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Communication Services
Industry: Telecom Services
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 12.30
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $25,822 M
Average Revenue: $139,239 M
Free Cash Flow to Revenue : 19 %
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $122,336 M
Revenue 4 Years Ago (2020-12-31): $143,050 M
Revenue Growth: -3%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $7,205 M
Share Count 5 Years Ago (2020-12-31): $7,148 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $2.18
Dividend Per Share (DPS): $1
Payout Ratio: 51%
Dividend Yield: 4%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 4, 4 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 10%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $27
52-Week Low: $15
Threshold Price (15% Above 52-Week Low): $18
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $193,196 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 21 points to above AT&T Inc (T) stock.
Value-Trades has assined P/E value 15. Since current year earning per share is $2.18.
The fair value of AT&T Inc (T) stock should be (15 x $2.18) = $32.70
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