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AT&T Inc. (T) — WACC Analysis

WACC Breakdown

AT&T Inc. (T) has a weighted average cost of capital (WACC) of 6.0%. The cost of equity is 7.5%, derived from a beta of 0.28 and a risk-free rate of 5.3%. The after-tax cost of debt is 4.2%. The capital structure is 55.9% equity and 44.1% debt.

Interpretation

A WACC of 6.0% suggests that the market views AT&T Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare T's WACC of 6.0% against industry peers to gauge its relative financing costs. A beta of 0.28 reflects the stock's volatility relative to the broader market.

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VALUATION

T WACC: 6.04% for AT&T Inc.

Current inputs imply a 7.48% cost of equity and a 5.34% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

AT&T Inc. Common Stock (T) WACC Results
Weighted Average Cost of Capital
6.04%
Cost of Equity
7.48%
Risk-Free Rate5.28%
Beta0.28
Market Risk Premium4.23%
Cost of Debt
4.22%
Pre-Tax Cost of Debt5.34%
Tax Rate21.00%
Tax Shield1.12%
Capital Structure
Equity: 55.87%($170.42B)
Debt: 44.13%($134.63B)
Equity Component
4.18%
55.87% × 7.48%
Debt Component
1.86%
44.13% × 4.22%

AT&T Inc. (T) WACC in context

AT&T Inc. (T) currently screens with an estimated WACC of 6.04%. That blends a 7.48% cost of equity, a 5.34% pre-tax cost of debt, and a 55.87% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What T WACC implies

A 6.04% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates T

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.28 and equity accounts for 55.87% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.