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How does this work?

A valuation is an assessment of the value of one share in a company, it is not necessarily the same as the price listed in the sharemarket. You can use a variety of methods to value a company, Valuecruncher uses Discounted Cash Flow (DCF) analysis to help people create the valuations you see below.

Valuecruncher Valuation

Dollar52Point65
Arrow_up_green93.71% from latest share price

Your Last Valuation


Valuation Compared to price Member Created Views
$52.65 Arrow_up_green93.71% Valuecruncher 09 Jan 2009 0
$53.73 Arrow_up_green102.22% dweis 19 Nov 2008 12
$39.25 Arrow_up_green26.41% TheCrunchBlog 06 Aug 2008 139
$35.68 Arrow_down_red-1.95% omer 13 Jun 2008 35
$40.73 Arrow_up_green4.92% GordonGekko 14 May 2008 52

Price History


Recent Comments


AT&T: Looks like a buy at $30

This valuation is supplemented by a Valuecruncher Blog post:

http://blog.valuecruncher.com/2008/08/att-looks-like-a-buy-at-30/

Assumptions:
Revenue
AT&T's revenues are forecast to grow to $125 billion in 2010 representing an annualised growth rate of 3.8% driven by AT&T's wireless and data offerings.

Profitability
EBITDA margins are forecast to remain constant at 36% over the next three years.

Discount Rate (WACC)
We have applied a discount rate of 9.00% based on Aswath Damodaran's industry analysis:

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/wacc.htm

Terminal Growth Rate
We have used a terminal growth rate of 3%. AT&T's strong wireless growth is offset by declining voice revenues.

By TheCrunchBlog, on the valuation by TheCrunchBlog, 5 months ago