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AT&TT +0.70%74 Debt-to-EBITDA is 3.23 as of Mar. 2026, which is 2% below its 10-year median of 3.31. GuruFocus rates T with a GF Score™ of 74/100 and a GF Value™ of $23.68 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 303 Telecommunication Services companies, AT&T ranks worse than 64.03% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for AT&T's Debt-to-EBITDA or its related term are showing as below:
T'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.44 Med: 3.31 Max: 7.35
Current: 2.91
During the past 13 years, the highest Debt-to-EBITDA Ratio of AT&T was 7.35. The lowest was 2.44. And the median was 3.31.
T's Debt-to-EBITDA is ranked worse than 64.03% of 303
companies
in the Telecommunication Services industry
Industry Median: 2.01
vs T: 2.91
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
AT&T Debt-to-EBITDA Related Terms
AT&T Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for AT&T's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Telecom Services subindustry, AT&T's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AT&T Debt-to-EBITDA vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, AT&T's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where AT&T's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
AT&T (T) has a Debt-to-EBITDA of 3.23 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on AT&T. This is near median its historical median of 3.31. Over the past decade, AT&T's Debt-to-EBITDA has ranged from 2.44 to 7.35. According to the industry distribution chart, AT&T ranks #194 out of 303 companies in the Telecommunication Services industry, placing it in the top 64%.
Is AT&T's Debt-to-EBITDA too high?
AT&T's current Debt-to-EBITDA of 3.23 is near median its 10-year median of 3.31. Over the past 10 years, this metric has ranged from a low of 2.44 to a high of 7.35. The Telecommunication Services industry median Debt-to-EBITDA is 2.01. AT&T's value of 3.23 is 60.7% above this industry median. Based on the distribution chart, AT&T ranks #194 out of 303 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, AT&T has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AT&T's Debt-to-EBITDA compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, AT&T ranks #194 out of 303 companies for Debt-to-EBITDA. This places AT&T in the lower half of its industry. The industry median Debt-to-EBITDA is 2.01. AT&T's value of 3.23 is 60.7% above this benchmark. Historically, AT&T's own Debt-to-EBITDA has ranged from 2.44 to 7.35 over the past decade. While the company's 10-year median is 3.31 vs. the industry median of 2.01, AT&T has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Telecommunication Services company?
The median Debt-to-EBITDA among Telecommunication Services companies is 2.01, based on 303 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AT&T's current Debt-to-EBITDA of 3.23 is 60.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on AT&T. For the Telecommunication Services industry, the median Debt-to-EBITDA is 2.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AT&T's current Debt-to-EBITDA is 3.23, which is near median its own 10-year median of 3.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AT&T stock overvalued right now?
Based on GuruFocus' analysis, AT&T (T) is currently considered Modestly Undervalued. The stock's GF Value™ is $23.68, compared to a current price of $21.43 — trading 9.5% below its estimated fair value. The current Debt-to-EBITDA is 3.23, which is near median its 10-year median of 3.31 and 60.7% above the Telecommunication Services industry median of 2.01. AT&T's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For AT&T (T), the current Debt-to-EBITDA is 3.23 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AT&T (T) Overvalued in 2026?
Based on GuruFocus' analysis, AT&T stock appears to be undervalued.
The current stock price of $21.43 is trading 9.5% below its estimated GF Value™ of $23.68.
GuruFocus considers AT&T to be Modestly Undervalued.
Key valuation signals for T:
Debt-to-EBITDA: 3.23 (near median its 10-year median of 3.31)
GF Value™: $23.68 vs. price of $21.43 (9.5% below fair value)
Industry Position: 60.7% above the Telecommunication Services median (#194 of 303)
No single metric tells the full story. See the T stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The wireless business contributes nearly 70% of AT&T's revenue. The company is the third-largest US wireless carrier, connecting 74 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 14% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential services, about 11% of revenue, primarily consist of in-home broadband internet access, serving 15 million customers. AT&T also has a sizable presence in Mexico, with 25 million wireless customers, but this business only accounts for 3% of revenue. The company recently sold its 70% equity stake in satellite television provider DirecTV to its partner, private equity firm TPG.
74GF Score
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