AT&T Inc.: Is It A Buy?

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One of the cheapest stocks in our  is:
AT&T Inc ()The wireless business contributes nearly 70% of AT&T’s revenue. The firm is the third-largest US wireless carrier, connecting 72 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 16% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential fixed-line services, about 11% of revenue, primarily consist of broadband internet access, serving 14 million customers. AT&T also has a sizable presence in Mexico, with 23 million customers, but this business only accounts for 4% of revenue. The firm still holds a 70% equity stake in satellite television provider DirecTV but does not consolidate this business in its financial statements.A quick look at the share price history (below) over the past twelve months shows that the price is up 50.85%. Here’s why the company is undervalued.Source: Google FinanceKey StatsMarket Cap: $158.7 BillionEnterprise Value: $319.31 Billion
Operating EarningsOperating Earnings: $24.69 Billion
Acquirer’s MultipleAcquirer’s Multiple: 12.90
Free Cash Flow (TTM)Free Cash Flow: $20.99 Billion
FCF/MC Yield %:FCF/MC Yield: 13.23
Shareholder Yield %:Shareholder Yield: 5.30
Other IndicatorsPiotroski F Score: 8.00Div Yield %: 5.20ROA (5 Year Avge%): 6More By This Author:

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