At&T’s Market Capitalization and Enterprice Value Evaluation

AT&T’s Market Capitalization and Enterprice Value Evaluation

The final data for AT&T’s Market Capitalization and Enterprice Value Evaluation is shown below:
| |2006-12-31 |2010-12-31 |2015-12-31 |
|No. shares of common stock outstanding |6,244,142,361 |5,911,433,420 |5,911,433,420 |
|Share price ($) |37.5 |28.08 |36.2 |
|USD $ in millions |
|Market Capitatalization |234,155 |165,993 |213,994 |
|Add: Noncontrolling interest |0 |303 |303 |
|Total equity |234,155 |166,296 |214,297 |
|Add: Debt maturing within one year |9,733 |7,196 |6,314 |
|Add: Long-term debt |50,063 |58,971 |71,928 |
|Total equity and debt |293,951 |232,463 |292,539 |
|Less: Cash and cash equivalents |(2,418) |(1,437) |(2,181) |
|Enterprise value (EV) |291,533 |231,026 |290,358 |

• Market Capitalization

Market capitalization = stock price * number of common shares outstanding
To forecast the stock price, we divider it in two parts: the influence of acquisition and the estimated annual grow rate. For the first part, we use a research result that forecasted that it will bring $5