AT&T Inc. (T): fair value, margin of safety and Wheel Score

Is T undervalued?

At 23.08 (close of 16 Oct 2026), T trades 72% below the GLS average fair value of 82.67. That average comes from 9 models run on the latest filings, and 8 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns AT&T Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The 9 models disagree widely: DDM gives 16.33 while DCF gives 192.71. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files T under High Yield Income: a dividend yield above 4%.

Nine valuation models for T

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health T scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 4.3 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are moderate - ROIC 7.7%, ROE 19.8%, ROA 5.2% - with debt at 1.57 times equity and a free-cash-flow yield of 11.2%.

The dividend yield is high at 4.81% (payout ratio 37%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Service 82%, Equipment 18% (quarter Q2 FY2026).

Institutional ownership scores 8/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded Congressional buy was on 10 Aug 2026.

Wheel Score 85: Prime

T scores 85 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (16/20), the GLS moat (6/15), the option premium on offer (18/20) and how easily the stock trades (20/20).

Implied volatility is 33% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (18 of 20 points). The option chain is deep: 1,178,699 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 40.3M shares a day on a market cap of $158.2B, with a beta of 0.43 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

AT&T Inc. reports earnings on 21 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Telecommunications Services

The 12 companies below are the closest to AT&T Inc. by market cap within the Telecommunications Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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