AT&T Inc.T AT&T Inc. fair value $23–$36

AT&T is a classic mature dividend payer characterized by slow revenue growthRevenue growthYear-over-year change in revenue, expressed as a percentage. The starting point for any forward-earnings model and the lens through which scale, mix, and pricing power become visible., high capital intensity, and robust free cash flowFree cash flowOperating cash flow minus capital expenditures. The cash a business generates after maintaining and growing its asset base — the closest accounting proxy for owner-economics. generation. The primary investment thesis rests on the sustainability of its dividend, driven by stable wireless and fiber broadband subscriber bases, while the company gradually deleverages its massive debt burden.

• Efficient scale from immense fiber
  Efficient scale from immense fiber and wireless network infrastructure.
• High barriers to entry due
  High barriers to entry due to capital intensity and spectrum licensing.
• Cycle upside
  Accelerating 5G monetization and enterprise IoT adoption drive incremental high-margin revenue.