AT&T T FAIRLY VALUED Buying Index™ 6 Value Rating

Valuentum Retail Equity Research Ratings as of 11-Jan-2022 Data as of 11-Jan-2022

Buying Index™ 7 Value RatingEconomic Castle

Attractive

Investment ConsiderationsDCF ValuationRelative Valuation

Stock Chart (weekly) ValueCreation™ValueRisk™ValueTrend™Cash Flow GenerationFinancial LeverageGrowthTechnical EvaluationRelative StrengthMoney Flow Index (MFI)Upside/Downside Volume (U/D)Near-term Technical Support, 10-week MADCF = Discounted Cash Flow; MFI, U/D = Please see glossary. MA = Moving Average

Business Quality ValueCreation™

ValueRisk™ Very Poor Poor Good ExcellentCompany Vitals Investment HighlightsMarket Cap (USD) $189,200Avg Weekly Vol (30 wks) 198,60230-week Range (USD) 22.02 - 29.35Valuentum Sector Telecom Services5-week Return 9.6%13-week Return 3.6%30-week Return -8.9%Dividend Yield % 7.9% Firms that generate economic profits with little operating variability score near the top right of the matrix.

Dividends per Share 2.08 Relative Valuation Forward P/E PEG Price / FV

Forward Dividend Payout Ratio 61.5% American Tower 27.6 1.6 92.7%Est. Normal Diluted EPS 2.98 Comcast 15.9 1.6 102.3%P/E on Est. Normal Diluted EPS 8.9 Crown Castle 27.9 2.0 95.2%Est. Normal EBITDA 72,634 Verizon 9.9 2.2 83.7%Forward EV/EBITDA 4.4 Peer Median 21.7 NMF 94.0%EV/Est. Normal EBITDA 4.6 AT&T 7.8 NMF 75.3%Forward Revenue Growth (5-yr) -1.0% Price / FV = Current Stock Price divided by Estimated Fair Value

Forward EPS Growth (5-yr) -230.0% Financial Summary ProjectedNMF = Not Meaningful; Est. = Estimated; FY = Fiscal Year

Fiscal Year End: Dec-19 Dec-20 Dec-21

Returns Summary 3-year Historical Average Revenue 181,193 171,760 168,325Return on Equity 6.1% Revenue, YoY% 6.1% -5.2% -2.0%Return on Assets 2.0% Non-GAAP Operating Income 29,413 25,285 40,302ROIC, with goodwill 6.7% Non-GAAP EBIT % 16.2% 14.7% 23.9%ROIC, without goodwill 10.2% Non-GAAP Net Income 13,903 -5,176 24,547ROIC = Return on Invested Capital; NMF = Not Meaningful Non-GAAP NI Margin % 7.7% -3.0% 14.6%Leverage, Coverage, and Liquidity Non-GAAP Diluted EPS 1.89 -0.72 3.38In Millions of USD Non-GAAP Dil EPS, YoY % -33.5% -138.1% -569.5%Total Debt 157,245 Non-GAAP FCF (CFO-capex) 29,033 27,455 25,757Net Debt 147,505 Non-GAAP FCF Margin % 16.0% 16.0% 15.3%Total Debt/EBITDA 2.5 In Millions of USD (except for per share items)

Net Debt/EBITDA 2.4 LARGE-CEBITDA/Interest 7.9 Structure of the Telecommunications Industry NEUTRALCurrent Ratio 0.8Quick Ratio 0.5

Industry $35.00 $28.00 - $42.00 LARGE-CAP VALUE Telecom Services Telecom Services - diversified

Visit us at www.valuentum.com

AT&T T UNDERVALUED 6.3% Estimated Fair Value Fair Value Range Investment Style Sector

GOODLOW

POSITIVESTRONGMEDIUM

DECLINING

AT&T is working towards spinning off its WarnerMedia unit by combining those operations with Discovery Inc and distributing shares of the new entity to its stockholders.

The week with the highest trading volume out of the last 30 weeks was a week of heavy selling, or distribution (red bar).

• In August 2020, AT&T launched nationwide 5Gwireless services in the US. As these are still earlydays, it remains to be seen how fast enterprises andconsumers will adopt 5G technology. AT&T’s successin this space is crucial.

• AT&T is working towards spinning off itsWarnerMedia unit by combining WarnerMedia withDiscovery Inc and distributing shares in the new entityits stockholders. Once completed, shareholders ofAT&T will own 71% of the new entity andshareholders of Discovery will own the remainder.This transaction is expected to close in mid-2022.

UNDERVALUEDNEUTRAL

BULLISHNEUTRALNEUTRAL

IMPROVING25.00

----- Actual -----

• AT&T is effectively pivoting back to its roots as awireless services provider by spinning offWarnerMedia. Its wireless and fiber businesses haveboth grown robustly of late, though these are capital-intensive businesses that will require heftyinvestments to maintain going forward.

Medium

High

Low 1• AT&T provides wireless, video, broadband, andrelated services to consumers, businesses, governmentand wholesale customers. The company also owns amedia and entertainment giant after acquiring TimeWarner in 2018, which came on the heels of its 2015acquisition of pay-TV provider DirecTV. AT&T isbased in Dallas, Texas. Very High

• AT&T sees ample room to grow its fiber-opticinternet business. The company is also workingtowards getting more of its wireless subscribers toshift to 5G-capable smartphones, though its ‘premiumTV’ business continues to shed subscribers.

NMF = Not Meaningful

The information and data contained in this report is not represented or warranted to be timely, complete, accurate, or correct. This report is for informational purposes only and should not be considered a solicitation to buy or sell a security. Before acting on any information in this report, you should consider whether the information is suitable for your particular circumstances and, if necessary, seek professional advice. Assumptions, opinions, and estimates are based on our judgment as of the date of the report and are subject to change without notice. Valuentum is not responsible for any errors or omissions or for results obtained from the use of this report. Redistribution is prohibited without written permission. To license Valuentum research, contact us at [email protected].

The telecom industry is characterized by rapid technological change, intense competition and pricing pressures. The mature wireline segment remains under attack from cable/wireless products. Mobile technology enhancements such as the iPhone continue to attract new wireless subscribers in less saturated markets, but this has not lessened the intensity of competition. Industry constituents continue to pursue acquisitions in order to reduce bloated cost structures and achieve synergies. Average revenue per subscriber and churn rates should be monitored closely. We’re neutral on the structure of the group.

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Valuentum Retail Equity Research (10=best) Data as of 11-Jan-2022


Attractive

Economic Profit Analysis

ValueCreation™ GOOD Return on Invested Capital (ROIC)

ROIC - WACC Spread, 3-year historical average 1.4%ROIC - WACC Spread, 5-year projected average 3.3%These spreads equal the firm's annual average ROIC (excluding goodwill) less its WACC.

ValueTrend™ POSITIVE

Weighted Average Cost of Capital (WACC) The graph above shows the firm's ROIC (excluding goodwill) compared with historical averages and its WACC.

ROIC CalculationFiscal Year End: Dec-18 Dec-19 Dec-20

Earnings before InterestOperating Income after Depreciation 26,142 29,413 25,285- Adjusted Taxes (at 20% of EBIT) 5,228 5,883 5,057+ Amortization 3,772 9,587 8,603+ Non-cash Operating Items -8,553 -4,111 9,832- Minority Interest 583 1,072 1,355Earnings before Interest 15,550 27,934 37,308

Cost of Equity Invested CapitalRisk Free Rate Assumption Inventories 0 0 0Fundamental Beta (ERP multiplier) + Receivables 26,472 22,636 20,215Estimated Equity Risk Premium + Current Deferred Income Taxes 0 0 0Cost of Equity Assumption + Other Current Assets 19,751 19,995 22,053

+ Property, Plant and Equipment, Net 131,473 130,128 127,315After-tax Cost of Debt + Goodwill, Net (Cost in Excess) 146,370 146,241 135,259Risk Free Rate Assumption + Intangibles 146,758 157,617 146,316Synthetic Credit Spread + Non Current Deferred Income Taxes 0 0 0Cost of Debt Assumption - Accounts Payable 43,184 49,737 52,773Cash Tax Rate Assumption - Other Current Liabilities 10,981 7,336 7,195After-tax Cost of Debt Assumption

Invested Capital, with goodwill 416,659 419,544 391,190Cost of Preferred Stock Invested Capital, without goodwill 270,289 273,303 255,931Preferred DividendsValue of Preferred Stock Return on Invested Capital, with goodwill 4.2% 6.7% 9.2%Cost of Preferred Assumption Return on Invested Capital, without goodwill 6.3% 10.3% 14.1%

In Millions of USD

Weighted Average Cost of Capital (WACC)ERP = Equity Risk Premium

Note: Valuentum may provide an adjusted ROIC measure to better reflect the economic substance of a company's operations, as in the case of companies with negative invested capital.

AT&T T UNDERVALUED 6.3% Estimated Fair Value Fair Value Range Investment Style Sector Industry

AT&T receives a ValueTrend™ rating of POSITIVE, which is based on the company'strailing three-year performance. The firm's ROIC (excluding goodwill) increased to14.1% last year from its trailing 3-year average of 10.2%. We expect ROIC (excludinggoodwill) to be in the ballpark of about 15% by the end of our discrete forecast period,with upside potential to about 22% over that time period.

---------- Actual ----------

4.3%

$35.00 $28.00 - $42.00 LARGE-CAP VALUE Telecom Services Telecom Services - diversified

The best measure of a firm's ability to create value for shareholders is expressed bycomparing its return on invested capital (ROIC) with its weighted average cost ofcapital (WACC). The gap or difference between ROIC and WACC is called the firm'seconomic profit spread. AT&T's 3-year historical return on invested capital (withoutgoodwill) is 10.2%, which is above the estimate of its cost of capital of 8.8%. As such,we assign the firm a ValueCreation™ rating of GOOD. In the chart to the right, weshow the probable path of ROIC in the years ahead based on the estimated volatility ofkey drivers behind the measure. The solid grey line reflects the most likely outcome, inour opinion, and represents the scenario that results in our fair value estimate.

20.0%6.4%

00

NA

8.8%

1.06.5%

10.8%

4.3%3.67%

8.0%


22.1%

14.8%

6.3%

10.3%

14.1%

7.5%WACC, 8.8%

0.0%

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45.4%

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Debt

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Capital Structure

Page 2



Attractive

Growth Analysis

Revenue Growth DECLINING Projected Revenue (in millions of USD) Source: Company Filings, Valuentum Projections

Last Fiscal Year

Revenue3-year Historical

CAGR5-year Projected

CAGRAT&T USD 171,760 2.3% -1.0%

American Tower USD 8,042 6.5% 11.0%

Comcast USD 103,564 7.0% 6.3%

Crown Castle USD 5,840 10.3% 8.2%

Verizon USD 128,292 0.6% 2.5%

Peer Median 6.7% 7.2%

Industry Median 5.9% 5.4%

In the chart above, we show our baseline forecast for revenue as well as potential upside and downside cases.

EBITDA Growth Projected EBITDA (in millions of USD) Source: Company Filings, Valuentum Projections

Last Fiscal Year

EBITDA3-year Historical

CAGR5-year Projected

CAGRAT&T USD 62,404 9.0% 2.5%


Comcast USD 30,593 3.2% 8.6%


Verizon USD 45,518 0.9% 4.0%



In the chart above, we show our baseline forecast for EBITDA as well as potential upside and downside cases.

Net Income Growth Projected Net Income (in millions of USD) Source: Company Filings, Valuentum Projections

Last Fiscal Year Net Income

3-year Historical CAGR

5-year Projected CAGR

AT&T USD -5,176 -156.0% -231.3%


Comcast USD 10,534 -22.6% 12.9%


Verizon USD 17,801 -16.1% 5.8%

Peer Median -2.6% 14.8%

Industry Median -14.2% 10.0%

In the chart above, we show our baseline forecast for net income as well as potential upside and downside cases.


AT&T's revenue expansion has trailed the median of both its peer group and itsindustry group during the past three years. We expect the firm's pace of revenue growthto fall below the median of both its peer group and industry group during the next fiveyears. Our growth assessment of each firm is based on the firm's 5-year forwardrevenue CAGR. AT&T's future pace of revenue growth is DECLINING, in our opinion.


AT&T's EBITDA expansion has been greater than that of both its peer group andindustry group during the past three years. We expect the firm's pace of EBITDAgrowth to fall below that of both its peer group and industry group during the next fiveyears. American Tower sports the highest expected EBITDA growth rate among peers.

AT&T's net income expansion has trailed both that of its peer group and its industrygroup during the past three years. We expect the firm's pace of net income growth tofall below that of both its peer group and industry group during the next five years.American Tower sports the highest expected net income growth rate among peers.


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Attractive

Cash Flow and Financial Leverage AnalysisCash Flow Generation STRONG Financial Leverage MEDIUM

The bars above show the firms operating cash flow, capital expenditures, and free cash flow, respectively. The bars above show the firm's annual debt-to-EBITDA. The red line shows the firm's normalized measure.

Cash Flow from Operations Projected Operating Cash Flow (in millions of USD) Source: Company Filings, Valuentum Projections

Last Fiscal Year CFO


5-year Projected CAGR

AT&T USD 43,130 3.3% 3.7%


Comcast USD 24,737 4.9% 8.2%


Verizon USD 41,768 18.2% 0.5%



In the chart above, we show our baseline forecast for CFO as well as potential upside and downside cases.

Free Cash Flow (CFO-capital expenditures) Projected Free Cash Flow (in millions of USD) Source: Company Filings, Valuentum Projections

Last Fiscal Year FCF


5-year Projected CAGR Source: Company Filings, Valuentum Projections

AT&T USD 27,455 16.0% -0.1%


Comcast USD 11,605 4.7% 11.2%


Verizon USD 21,450 42.1% 0.4%



In the chart above, we show our baseline forecast for free cash flow as well as potential upside and downside cases.


Firms that generate a free cash flow margin (free cash flow divided by total revenue)above 5% are usually considered cash cows. AT&T's free cash flow margin hasaveraged about 15% during the past 3 years. As such, we think the firm's cash flowgeneration is relatively STRONG. The free cash flow measure shown above is derivedby taking cash flow from operations less capital expenditures and differs fromenterprise free cash flow (FCFF), which we use in deriving our fair value estimate forthe company. For more information on the differences between these two measures,please visit our website at Valuentum.com. At AT&T, cash flow from operationsdecreased about 1% from levels registered two years ago, while capital expenditures fellabout 26% over the same time period.

Firms that exhibit high leverage tend to be more risky than firms with relatively lowdebt loads, all else equal. We measure financial leverage by taking a firm's currenttotal debt load and dividing it by the firm's trailing average 3-year annual EBITDA.Firms that are over 3 for this metric, we rate as having high leverage. Companies thathave less than 1.5 turns of leverage (or a measure below 1.5), we rate as having lowleverage. AT&T's normalized debt-to-EBITDA measure of about 2.51 puts it in theMEDIUM camp.


AT&T's cash flow from operations expansion has trailed both that of its peer group andits industry group during the past three years. We expect the firm's pace of cash flowfrom operations growth to fall below that of both its peer group and industry groupduring the next five years. American Tower sports the highest expected cash flow fromoperations growth rate among peers.

AT&T's free cash flow expansion has trailed that of its peer group but has been greaterthan that of its industry group during the past three years. We expect the firm's pace offree cash flow growth to fall below that of both its peer group and industry groupduring the next five years. Crown Castle sports the highest expected free cash flowgrowth rate among peers.


43,60248,668

43,130

21,251 19,63515,675

22,351

29,033 27,455

Dec-18 Dec-19 Dec-20

Cash from Operations Capital Expenditures Free Cash FlowAT&T - normalized

leverage, 2.51

0

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12/31/2018 12/31/2019 12/31/2020

AT&T- annual leverage AT&T - normalized leverageMedium Threshold HighThreshold

43,60248,668

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Attractive

Valuation Analysis

Valuation Assumptions Valuation BreakdownIn Millions of USD (except for per share items)

Revenue CAGR %Avg. EBIT Margin %Avg. Cash Tax Rate %Earnings Before Interest CAGR %Earnings Per Share CAGR %Free Cash Flow to the Firm CAGR %Earnings before interest = Net operating profits less adjusted taxes

Phase II --> III FCFF CAGR % 0.5% (II) 3% (III)Cost of Equity %After-tax Cost of Debt %Discount Rate (WACC) %Synthetic credit spread = 3.667%

Phase I Present ValuePhase II Present ValuePhase III Present ValueTotal Firm Value

Net Balance Sheet Impact

Total Equity ValueDiluted Shares OutstandingFair Value per Share

DCF Valuation Summary Enterprise Free Cash FlowFiscal Year End: 12/31/2018 12/31/2019 12/31/2020

15,550 27,934 37,30828,430 28,217 28,51621,251 19,635 15,675

1,236 -10,389 -5,457 - Acquisitions 43,309 1,809 1,851

-21,816 45,096 53,755In Millions of USD

Source: Company Filings, Valuentum Projections

Company NameValuentum Buying

Index™Forward Price-to-

Earnings

Price/Earnings-to-Growth (PEG), 5-

yearEV/Est. Normal

EBITDA

5-year Forward Earnings per Share CAGR

3-year Hist Avg ROIC, without

goodwillDividend Yield

%

Stock Price / Fair Value Estimate

AT&T 7 7.8 NMF 4.6 -230.0% 10.2% 7.9% 75.3%

American Tower 3 27.6 1.6 21.4 19.4% 15.6% 2.1% 92.7%

Comcast 7 15.9 1.6 7.7 14.0% 13.4% 2.0% 102.3%

Crown Castle 3 27.9 2.0 22.4 13.6% 12.2% 3.1% 95.2%

Verizon 7 9.9 2.2 6.1 5.8% 12.1% 4.8% 83.7%

Peer Median 5.0 21.7 NMF 14.5 13.8% 12.8% 2.6% 94.0%

Industry Median 6.0 12.9 1.8 7.9 9.7% 12.8% 2.4% 95.0%



5-year Projections In the chart below, we show the build up to our estimate of total enterprise value forAT&T and the break down to the firm's total equity value, which we estimate to beabout 249.23USD billion. The present value of the enterprise free cash flowsgenerated during each phase of our model and the net balance sheet impact, whichconsiders the firm's pension, is displayed. We divide total equity value by dilutedshares outstanding to arrive at our $35 per share fair value estimate.

-1.0%22.9%20.0%

8.8%Results116,545

-4.2%-230.0%

-9.7%Long-term Projections

10.8%6.4%

-153,801

249,2327,183.0$35.00

172,261114,227403,033

Company Metrics versus Peer and Industry Medians

P/E on Est. Normal Diluted EPS Forward EV/EBITDA

8.9 4.4

In addition to the firm's cap structure, the net balance sheet impact considers the funded status of the firm's pension (-6296). In Millions of USD

---------- Actual ----------

We think AT&T is worth $35 per share with a fair value range of $28.00 - $42.00.The margin of safety around our fair value estimate is driven by the firm's LOWValueRisk™ rating, which is derived from an evaluation of the historical volatility ofkey valuation drivers and a future assessment of them. Our near-term operatingforecasts, including revenue and earnings, do not differ much from consensus estimatesor management guidance. Our model reflects a compound annual revenue growth rateof -1% during the next five years, a pace that is lower than the firm's 3-year historicalcompound annual growth rate of 2.3%. Our model reflects a 5-year projected averageoperating margin of 22.9%, which is above AT&T's trailing 3-year average. Beyondyear 5, we assume free cash flow will grow at an annual rate of 0.5% for the next 15years and 3% in perpetuity. For AT&T, we use a 8.8% weighted average cost of capitalto discount future free cash flows.

Earnings before Interest+ Depreciation - Capital Expenditures - Change in Working Capital

Enterprise Free Cash Flow (FCFF)

Our future forecasts for key valuation drivers result in a future free enterprise cashflow stream. Above, we show how we calculate enterprise free cash flow and thehistorical performance of the metric for AT&T. Over the next five years, we expectthe firm's enterprise free cash flow to expand at about a -10% compound annualgrowth rate. During years 6 through 20, we expect the measure to grow at a 0.5%rate. Beyond year 20 (in perpetuity), we grow the firm's free cash flow at inflation(3%).

9.7 6.3

24.7 17.6

11.8 8.9

36.3 26.4

13.1 8.7

51.2 26.8

View back of report for a full list of industry constituents covered by Valuentum. VBI: Valuentum's ranking for the attractiveness of this investment at the date of the report.


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Equity Value

Page 5



Attractive

Margin of Safety Analysis

Range of Potential Outcomes ValueRisk™ LOW

Revenue Volatility 4.9%Gross Margin Volatility 6.2%Earnings (EBI) Volatility 39.3%Cash Flow (FCFF) Volatility Greater than 50%Fair Value Range 20.0%The Fair Value Range sets the premium or discount on our estimate of the firm's fair value.

Upside and Downside ProbabilitiesProbability (fair value < $0) Less than 0.1%Probability (fair value > 2x current share price) 0.58%

Future Path of Fair Value

The graph above shows the expected future fair value of the firm's shares relative to its current stock price.


Our discounted cash flow process values each firm on the basis of the present value ofall future free cash flows. Although we estimate the firm's fair value at about $35 pershare, every company has a range of probable fair values that's created by theuncertainty of key valuation drivers (like future revenue or earnings, for example). After all, if the future were known with certainty, we wouldn't see much volatility in themarkets as stocks would trade precisely at their known fair values. Our ValueRisk™rating sets the margin of safety or the fair value range we assign to each stock. In thegraph above, we show this probable range of fair values for AT&T. We think the firm isattractive below $28 per share (the green line), but quite expensive above $42 per share(the red line). The prices that fall along the yellow line, which includes our fair valueestimate, represent a reasonable valuation for the firm, in our opinion.

We strive to answer a few questions that investors often ask: 1) What are the chancesof a total loss of investment in this company? and 2) What is the chance that thecompany is really worth twice what I paid for it? The probability (fair value < 0)strives to answer the first question. It indicates the chance that the firm mayencounter insolvency based on the characteristics of its cash flow stream, capitalstructure, and risk profile. The probability (fair value > 2x current share price) strivesto answer the second question. It is our best estimate of whether investors areparticipating in a half-off sale by buying the company's shares at current prices.

We estimate AT&T's fair value at this point in time to be about $35 per share. As timepasses, however, companies generate cash flow and pay out cash to shareholders in theform of dividends. The chart to the right compares the firm's current share price withthe path of AT&T's expected equity value per share over the next three years, assumingour long-term projections prove accurate. The range between the resulting downsidefair value and upside fair value in Year 3 represents our best estimate of the value of thefirm's shares three years hence. This range of potential outcomes is also subject tochange over time, should our views on the firm's future cash flow potential change. Theexpected fair value of $38 per share in Year 3 represents our existing fair value pershare of $35 increased at an annual rate of the firm's cost of equity less its dividendyield. The upside and downside ranges are derived in the same way, but from the upperand lower bounds of our fair value estimate range.



AT&T receives a ValueRisk™ rating of LOW based of the historical volatility of keydrivers of economic value creation. The fair value range sets the margin of safetyaround our fair value estimate of the firm's shares.

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Page 6



Attractive

Technical Analysis

Technical Evaluation BULLISH Money Flow Index (MFI) NEUTRAL

30-week Price and Volume Chart (weekly)Relative Price Strength NEUTRAL

5-week Company Performance 9.6%5-week Market Benchmark Performance 2.5%5-week Relative Performance vs. Market Benchmark 7.1%13-week Company Performance 3.6%13-week Market Benchmark Performance 1.4%13-week Relative Performance vs. Market Benchmark 2.1%30-week Company Performance -8.9%30-week Market Benchmark Performance 13.0%30-week Relative Performance vs. Market Benchmark -21.9%

Upside/Downside Volume IMPROVING Timeliness Matrix™ Equity Valuation

Relative Strength

Firms that are undervalued and currently showing near-term pricing strength score near the top right of the matrix.

AT&T T UNDERVALUED 6.3%

The firm's near-term moving average (5-week, grey line) and medium-term movingaverage (13-week, red line) are shown in the chart above. Typically, when a shorter-term moving average crosses a medium- or longer-term moving average from below, itrepresents a bullish signal. If the short-term moving average crosses from above, tradersoften view this as bearish. AT&T's 5-week moving average resides above its 13-weekmeasure, indicating a BULLISH trend. Such a move could indicate a reversal in thefirm's 30-week downtrend.

The Money Flow Index (MFI) is an oscillator that uses price and volume to measurebuying and selling pressure. Chartists often look for overbought (above 80) andoversold (below 20) levels to warn of unsustainable near-term price extremes.AT&T's MFI of 45 (green line) is neutral, suggesting the firm's stock is neitheroverbought nor oversold at this time. However, a score below 50 tends to favor bears.The MFI can also be used to gauge the strength or weakness of a firm's price trend. InAT&T's case, its stock price and money flow neither reveals a bullish nor bearishdivergence, further supporting our neutral view on its money flow action.

A firm's relative price strength can be assessed over any number of time horizons. Weshow the firm's performance over the past 5 weeks, 13 weeks, and 30 weeks below.In arriving at our relative strength rating for each company, we assess the past 13weeks, which includes the market's reaction to the firm's most recently reportedquarter, where applicable, and other more recent economic events. During the past 13weeks, AT&T's shares returned 3.6%, while the market benchmark returned 1.4%.We think AT&T's 13-week relative price performance is NEUTRAL.

In the chart above, we pinpoint the heaviest accumulation or distribution week of thefirm, determined by the week with the highest trading volume during the past 30 weeks.A heavy accumulation (buying) or distribution (selling) week often determines thefuture near-term direction of the firm's share price, as money managers continue tomove in or out of the stock in the days and weeks ahead driving the stock up or down,respectively. For AT&T, the week with the highest trading volume out of the last 30weeks was a week of heavy buying, or accumulation (green bar). Such market activitycould indicate a reversal of a downtrend or further confirmation of the firm's uptrend.

Overvalued Fairly Valued Undervalued

Estimated Fair Value Fair Value Range Investment Style Sector Industry $35.00 $28.00 - $42.00 LARGE-CAP VALUE Telecom Services Telecom Services - diversified

Weak

Companies that are undervalued and showing near-term relative price strength couldrepresent timely buys, as the stock may be attractive to both value and momentuminvestors. A cross section of the firm's equity valuation and its relative share pricestrength is shown in the matrix above. We tend to prefer undervalued stocks that have strong pricing momentum, also called Valuentum stocks.

The level and trend of the Upside/Downside (U/D) volume ratio reveals whetherinstitutional participation has been bullish or bearish as of late. Although AT&T's U/Dvolume ratio of 0.5 is less than 1, it resides above its trailing average, indicating bearishbut IMPROVING institutional interest during the past several weeks.

Strong

Neutral 1


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27

29

31

0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

5-week Moving Average 13-week Moving

AverageStock Price

2122232425262728293031

Overbought Line

Oversold Line32

45

0102030405060708090

0.4

0.5

Average, 0.4

0.0

0.1

0.2

0.3

0.4

0.5

0.6

- 10-week Moving Average

Page 7



Attractive

Pro Forma Income Statement -------------------- Historical --------------------

In Millions of USD (except for per share items)Dec-18 Dec-20

Total Revenue 170,756 171,760

Cost of Goods Sold 79,419 79,920

Selling, General and Administrative Expenses 36,765 38,039

Other Operating Expenses 28,430 28,516

Operating Income 26,142 25,285

Unusual items 0 0

Operating Income, including unusual items 26,142 25,285

Interest Expense (7,957) (7,925)

Other Non-operating Income 6,688 (20,216)

Pre-tax Income 24,873 (2,856)

Income Taxes 4,920 965

Income after tax 19,953 (3,821)

Minority Interest and Equity Income (583) (1,355)

Net Income, excluding extra items 19,370 (5,176)

Income Available to Common, excluding extra items 19,370 (5,369)

Diluted Earnings per Share, excluding extra items 2.85 (0.72)

Diluted Weighted Shares Outstanding 6,806.0 7,183.0

Source: Company Filings, Xignite, Valuentum Projections


---------- Projected ----------


181,193 168,325 158,225


28,217 24,924 23,132

84,141 69,852 64,830

39,422 33,247 30,857

0 0 0

29,413 40,302 39,406

29,413 40,302 39,406

(2,523) 0 0

(8,422) (7,925) (7,925)

3,493 6,475 6,296

18,468 32,377 31,481

(1,072) (1,355) (1,355)

14,975 25,902 25,185

13,900 24,547 23,830

13,903 24,547 23,830

7,348.0 7,254.8 7,327.4


1.89 3.38 3.25

Note: Pro forma data in discounted cash-flow valuation may reflect significant adjustments from GAAP accounting data, including cash (not effective) tax rates and other analytical adjustments on a backward-looking and forward-looking basis. No individual data, by itself, found in this report should be used to make any investment decision.

Page 8



Attractive

Pro Forma Balance Sheet -------------------- Historical --------------------


AssetsTotal Cash (including marketable securities) 5,204 9,740Inventory 0 0Accounts Receivable 26,472 20,215Other Current Assets 19,751 22,053Total Current Assets 51,427 52,008

Gross Fixed Assets 330,690 327,751(Accumulated Depreciation) (199,217) (200,436)Net Property, Plant, and Equipment 131,473 127,315

Goodwill, Net 146,370 135,259Intangibles, Net 146,758 146,316Other Long-term Assets 55,836 64,863Total Assets 531,864 525,761

LiabilitiesAccounts Payable 43,184 52,773Other Current Liabilities 10,981 7,195Current Portion of Long-term Debt 10,255 3,470Total Current Liabilities 64,420 63,438

Long-term Debt 166,250 153,775Other Long-term Liabilities 117,105 146,875Total Liabilities 347,775 364,088

Preferred Stock 0 0

Shareholders' EquityCommon Stock and Additional Paid in Capital 133,146 137,796Retained Earnings 58,753 37,457Other Equity (7,810) (13,580)Total Shareholders' Equity 184,089 161,673

Total Liabilities and Shareholders' Equity 531,864 525,761

AT&T T UNDERVALUED 6.3%

---------- Projected ----------


Estimated Fair Value Fair Value Range Investment Style Sector Industry $35.00 $28.00 - $42.00 LARGE-CAP VALUE Telecom Services Telecom Services - diversified

0 0 022,636 19,936 18,858

12,130 22,299 31,116

333,538 348,912 371,132(203,410) (228,382) (254,651)

19,995 22,053 22,05354,761 64,288 72,027

157,617 137,713 129,11062,922 64,863 64,863

130,128 120,531 116,481

146,241 135,259 135,259

49,737 45,425 41,510

551,669 522,653 517,740

68,911 61,627 57,858

7,336 12,731 12,87811,838 3,470 3,470

367,448 362,277 358,508

151,309 153,775 153,775147,228 146,875 146,875

133,900 139,688 141,59957,936 48,269 58,213

0 0 0

551,669 522,653 517,740

(7,615) (27,580) (40,580)184,221 160,377 159,232




Page 9



Attractive

Pro Forma Cash Flow Statement -------------------- Historical --------------------


Cash from OperationsNet Income 19,953 (3,821)Depreciation and Amortization 32,202 37,119Deferred Income Taxes 0 0Operating Gains Or Losses (8,553) 9,832Changes in Working Capital 0 0

Cash Flow from Operations 43,602 43,130

Cash from InvestingPurchase of Property, Plant, Equipment (21,251) (15,675)Other Investing Cash Flows (41,894) 2,127Cash Flow from Investing (63,145) (13,548)

Cash from FinancingIssuance (Retirement) of Stock 136 (1,524)Issuance (Retirement) of Debt (8,789) (10,986)Dividends Paid (13,410) (14,956)Other Financing Cash Flows (3,926) (4,541)Cash Flow from Financing (25,989) (32,007)

Foreign Exchange 0 0

Net Change in Cash (45,532) (2,425)




---------- Projected ----------

37,804 36,549 34,8720 0 0

14,975 25,902 25,185

48,668 46,918 44,367

(4,111) (14,000) (13,000)0 (1,532) (2,690)

(16,690) (21,161) (22,219)

(19,635) (21,161) (22,219)2,945 0 0

(14,888) (15,090) (15,241)7,198 0 0

(622) 1,892 1,911(16,771) 0 0

0 0 0

6,895 12,559 8,818

(25,083) (13,198) (13,330)




Page 10



Attractive

Telecom Services - diversifiedTelecom Services - diversified FAIRLY VALUED

Company Name TickerMarket Cap (USD-

mil) DCF Valuation ValueCreation™ ValueRisk™ ValueTrend™ Technicals Relative Strength

American Tower AMT 116,206 FAIRLY VALUED EXCELLENT LOW POSITIVE VERY BEARISH WEAK

AT&T T 189,200 UNDERVALUED GOOD LOW POSITIVE BULLISH NEUTRAL

Comcast CMCSA 234,107 FAIRLY VALUED GOOD LOW NEGATIVE VERY BULLISH WEAK

Crown Castle CCI 79,726 FAIRLY VALUED GOOD MEDIUM POSITIVE VERY BEARISH STRONG

Dish Network DISH 20,675 FAIRLY VALUED POOR MEDIUM POSITIVE VERY BULLISH WEAK

Lumen Tech LUMN 14,396 FAIRLY VALUED EXCELLENT HIGH NEGATIVE BULLISH STRONG

SBA Comm SBAC 38,382 FAIRLY VALUED EXCELLENT MEDIUM POSITIVE VERY BEARISH WEAK

T-Mobile TMUS 128,143 FAIRLY VALUED POOR MEDIUM NEGATIVE BEARISH WEAK

Verizon VZ 221,970 FAIRLY VALUED GOOD LOW POSITIVE BULLISH NEUTRAL

ViacomCBS VIAC 21,605 FAIRLY VALUED EXCELLENT MEDIUM NEGATIVE VERY BULLISH WEAK


We think the Telecom Services - diversified industry is fairly valued at this time. Theindustry's market cap is trading between 80% and 120% of our estimate of its fair valuebased on our DCF process. Although we use a firm-specific ValueRisk™ measure todetermine whether a firm is undervalued or overvalued based on our DCF process, weconsider an industry to be undervalued if it is trading below 80% of our estimate of itsfair value and overvalued if it is trading at over 120% of our estimate of its fair value.We think these fair value ranges are appropriate given the diversification benefits ofholding a basket of stocks. Although there may be individual opportunities within theTelecom Services - diversified industry, we don't find the industry as a whole attractivebased solely on valuation.


LARGE-CAP VALUE NEUTRAL

MEGA-CAP CORE ATTRACTIVE

LARGE-CAP VALUE UNATTRACTIVE

The above bar chart reveals the price/fair value of the company, its peers, and the industry as a whole.Shaded blue denotes that the firm has earned the highest rating for that respective category.Investment Style Relative Valuation

LARGE-CAP BLEND UNATTRACTIVE


MEGA-CAP VALUE ATTRACTIVE



LARGE-CAP CORE NEUTRAL

LARGE-CAP GROWTH NEUTRAL


75.3%

94.0% 95.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

AT&T Peer Median Telecom Services - diversified

Page 11

Valuentum's Full Page Stock Report


BA

G

I

N

C

J

D

M

H

E

L

K

A DCF ValuationShows whether the firm is undervalued, fairly valued, or overvalued based on our DCF process and by how much.

B Valuentum Buying Index (VBI)Provides insight into the timeliness of an investment opportunity. We rank firms from 1 to 10 based on rigorous fiancial, valuation, and technical analysis. A 10 represents one of our top picks.

C Valuentum Value Rating (VVR) Indicates whether we think a firm is undervalued, fairly valued, or overvalued on the basis of our DCF process.

D Investment ConsiderationsEvaluates firms on 12 different measures, from the firm's growth and cash flow generation to the stock's money flow index and upside/downside volume. We reveal technical support and resistance levels.

E 30-week Price and Volume ActionDisplays the last accumulation or distribution week of the stock and historical price and volume action.

G Company VitalsShows sector,industry and other relevant company information.

H Business QualitySummary of the firm's ability to create value for shareholders compared wth the underlying risk of its operations.

I Normalized EPS and EBITDAEstimation of the firm's normalized earnings measures and the corresponding valuation mutliples.

J Investment HighlightsOur opinion of the company, including analysis of its financial and technical strengths and weaknesses.

K Relative ValuationComparison of the firm's PE, PEG, and Price/FV ratios versus peers.

L Returns Summary3-year averages of the firm's key return measures, including return on invested capital, with and without goodwill.

M Leverage, Coverage, and LiquidityA snapshot of the company's financial health.

N Financial SummaryA summary of the proforma financial statements found in the extended report.

VBI Score Action10 Top Pick9 We'd Consider Buying

6 to 8 Constructive (add/trim)3 to 6 Less Exciting (add/trim)1 to 2 We'd Consider Selling

Page 12

UNDERVALUED

FAIRLY VALUED

OVERVALUED

• Revenue Volatility • Margin Volatility • Earnings Volatility • Cash Flow Volatility

About Valuentum

@Valuentum, we strive to stand out from the crowd. Mostinvestment research publishers fall into a few camps,whether it be value, growth, income, momentum, chartistor some variant of the aforementioned. We think each inits own right holds merit, but we think the combination ofthese approaches can be even more powerful. After all,stock price movements aren’t just driven by investors ofthe value or growth variety, but by all market participants.Therefore, we look at stocks from a variety of investmentperspectives in order to better understand and identifyideas. We want to provide relevant information.

The core of our process is grounded in rigorous discountedcash flow analysis and incorporates the concept of amargin of safety. We offer a fair value estimate for eachcompany and provide a relative valuation assessment inthe context of a company’s industry and closest peers. Across section of our ValueCreation™ and ValueRisk™ratings provides a financial assessment of a company’sbusiness quality, while our ValueTrend™ rating offersinsight into the trajectory of a firm’s economic profitcreation. The Economic Castle rating measures themagnitude of future economic value generation, and theDividend Cushion ratio assesses the financial capacity of acompany to keep raising its dividend.

Our analysis doesn’t stop there. We also offer a technicalevaluation of the stock as well as other momentumindicators. We not only want to reveal to readers whichfirms may be undervalued, in our view, but we also wantto provide readers with information to help them assessentry and exit points. Most research publishers focus onarriving at a target price or fair value estimate, but mayfall short of providing a technical assessment to bolsterbuy and sell disciplines. We strive to go the distance andprovide readers with answers--not half the story.

An explanation of our approach would not be complete ifwe didn’t describe our ideal stock idea. We’re lookingfor companies that are undervalued--both on a DCF basisand versus peers--have strong growth potential, have asolid track record of creating economic profits forshareholders with reasonable risk, are strong cash flowgenerators, have manageable financial leverage, and arecurrently showing bullish technical and momentumindicators. For dividend growth ideas, we look forcompanies that have both the capacity and willingness tokeep raising the dividend.

Can such stock ideas exist? Subscribe to Valuentum toreceive our best investment ideas and analysis onhundreds of stocks, dividends, ETFs and more.


Historical firm-specific financial data generates our ValueCreation™, ValueRisk™, and ValueTrend™ ratings. The data provides the basis for our financial forecasts. Full annual forecasts of income statement, balance sheet, and cash flow statement items. Firm-specific cost of equity, cost of debt, weighted average cost of capital, and long-term growth and profitability measures estimated.

A complete three-stage free cash flow to the firm valuation model generates an estimate of the firm's equity value per share based on estimated future free cash flows.The volatility of key valuation drivers are estimated and a margin of safety is determined.

The firm's stock price is compared to the suggested margin of safety. If a firm's stock price falls below the lower bound of our estimated fair value range, it receives Valuentum's highest Value Rating.

Financial Forecasts

Financial Statement Analysis

Discounted Cash Flow Valuation

ModelValueRisk™

Rating

Valuentum Value Rating (VVR)

Page 13

VBI Score Action10 Top Pick9 We'd Consider Buying

6 to 8 Constructive (add/trim)3 to 6 Less Exciting (add/trim)1 to 2 We'd Consider Selling

Methodology for Picking Stocks - Valuentum Buying Index™ (VBI)

@ Valuentum, we like to look at companies from anumber of different perspectives. The Valuentum BuyingIndex (VBI) combines rigorous financial and valuationanalysis with an evaluation of a stock's technicals to derivea rating between 1 and 10 for each company. The VBIplaces considerable emphasis on a company's discountedcash-flow (DCF) valuation, its relative valuation versuspeers (both forward PE and PEG ratios), and its technicalsin order to help readers assess entry and exit points on themost interesting ideas.

Let's follow the red line on the flow chart below to seehow a company can score a 10, the best mark on the index(a "Top Pick"). First, the company would need to be'undervalued' on a DCF basis and 'attractive' on a relativevalue basis. The stock would also have to be exhibiting

'bullish' technicals. The firm would need aValueCreation™ rating of 'good' or 'excellent', exhibit'high' or 'aggressive' growth prospects, and generate atleast a 'medium' or 'neutral' assessment for cash flowgeneration, financial leverage, and relative price strength.

This is a tall order for any company. Stocks that don'tmake the cut for a 10 are ranked accordingly, with theleast attractive stocks, in our opinion, garnering a ratingof 1 ("We'd sell"). Most of our coverage universeregisters ratings between 3 and 7, but at any given timethere could be large number of companies garneringeither very high or very low scores, especially at marketlows or tops, respectively.

The Best Ideas Newsletter portfolio puts the VBI intopractice.

The information contained in this report is not represented or warranted to be accurate, correct, complete, or timely. This report is for informational purposes only and should not be considered a solicitation to buy or sell a security. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Assumptions, opinions, and estimates are based on our judgment as of the date of the report and are subject to change without notice. Valuentum is not responsible for any errors or omissions or for results obtained from the use of this report. Redistribution is prohibited without written permission. To license Valuentum research, contact us at [email protected].

DCF FairlyValued

DCF Undervalued

Relative ValueUnattractive/Neutral

Relative Value Attractive

Relative ValueUnattractive/Neutral


Technicals Bearish: 1

Technicals Neutral: 2

TechnicalsBullish: 4

Technicals Bullish: 7

TechnicalsBearish: 6

Technicals >= BullishValueCreation(TM) >= GoodGrowth >= HighCash Flow Generation >= MediumFinancial Leverage <= MediumRelative Strength >= Neutral

Final Score: 10



TechnicalsBearish: 3

Relative Value Unattractive/Neutral











Initial Index Score

DCF Overvalued

Page 14

GlossaryEstimated Fair Value. This measure is our opinion of the fair equity value per share ofthe company. If our forecasts prove accurate, which may not always be the case, wemay expect a firm's stock price to converge to this value within the next 3 years.

Investment Style. Valuentum uses its own proprietary stock-classification system.Nano-cap: Less than $50 million; Micro-cap: Between $50 million and $200 million;Small-cap: Between $200 million and $2 billion; Mid-cap: Between $2 billion and$10 billion; Large-cap: Between $10 billion and $200 billion; Mega-cap: Over $200billion. Blend: Firm's that we think are undervalued and exhibit high growthprospects (growth in excess of three times the rate of assumed inflation). Value:Firm's that we believe are undervalued, but do not exhibit high growth prospects.Growth: Firms that are not undervalued, in our opinion, but exhibit high growthprospects. Core: Firms that are neither undervalued nor exhibit high growthprospects.

Fair Value Range. The fair value range represents an upper bound and lower bound,between which we would consider the firm to be fairly valued. The range considers ourestimate of the firm's fair value and the margin of safety suggested by the volatility ofkey valuation drivers, including revenue, gross margin, earnings before interest, andenterprise free cash flow (the determinants behind our ValueRisk™ rating).

DCF Valuation. We opine on the firm's valuation based on our DCF process. Firmsthat are trading with an appropriate discount to our fair value estimate receive anUNDERVALUED rating. Firms that are trading within our fair value range receive aFAIRLY VALUED rating, while firms that are trading above the upper bound of ourfair value range receive an OVERVALUED rating.

Company Vitals. In this section, we list key financial information and the sector andindustry that Valuentum assigns to the stock. The P/E-Growth (5-yr), or PEG ratio,divides the current share price by last year's earnings (EPS) and then divides thatquotient by our estimate of the firm's 5-year EPS growth rate. The estimatednormalized diluted EPS and estimated normalized EBITDA represent the five-yearforward average of these measures used in our discounted cash flow model. The P/Eon estimated normalized EPS divides the current share price by estimated normalizeddiluted EPS. The EV/estimated normalized EBITDA considers the current enterprisevalue of the company and divides it by estimated normalized EBITDA. EV is definedas the firm's market capitalization plus total debt, minority interest, preferred stockless cash and cash equivalents.

Relative Value. We compare the firm's forward price-to earnings (PE) ratio and itsprice/earnings-to-growth (PEG) ratio to that of its peers. If both measures fall below thepeer median, the firm receives an ATTRACTIVE rating. If both are above the peermedian, the firm receives an UNATTRACTIVE rating. Any other combination resultsin a NEUTRAL rating.

ValueCreation™. This is a proprietary Valuentum measure. ValueCreation™indicates the firm's historical track record in creating economic value for shareholders,taking the average difference between ROIC (without goodwill) and the firm'sestimated WACC during the past three years. The firm's performance is measured alongthe scale of EXCELLENT, GOOD, POOR, and VERY POOR. Those firms withEXCELLENT ratings have a demonstrated track record of creating economic value,while those that register a VERY POOR mark have been destroying economic value.

Business Quality Matrix. We compare the firm's ValueCreation™ and ValueRisk™ratings. The box is an easy way for investors to quickly assess the business quality ofa company. Firms that generate economic profits with little operating variabilityscore near the top right of the matrix.

Timeliness Matrix. We compare the company's recent stock performance relative tothe market benchmark with our assessment of its valuation. Firms that areexperiencing near-term stock price outperformance and are undervalued by ourestimate may represent timely buys.

The information contained in this report is not represented or warranted to be accurate, correct, complete, or timely. This report is for informational purposes only and should not be considered a solicitation to buy or sell a security. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Assumptions, opinions, and estimates are based on our judgment as of the date of the report and are subject to change without notice. Valuentum is not responsible for any errors or omissions or for results obtained from the use of this report. Redistribution is prohibited without written permission. To license Valuentum research, contact us at [email protected].

ValueRisk™. This is a proprietary Valuentum measure. ValueRisk™ indicates thehistorical volatility of key valuation drivers, including revenue, gross margin, earningsbefore interest, and enterprise free cash flow. The standard deviation of each measure iscalculated and scaled against last year's measure to arrive at a percentage deviation foreach item. These percentage deviations are weighted equally to arrive at thecorresponding fair value range for each stock, measured in percentage terms. The firm'sperformance is measured along the scale of LOW, MEDIUM, HIGH, and VERY HIGH.The ValueRisk™ rating for each firm also determines the fundamental beta of eachfirm along the following scale: LOW (0.85), MEDIUM (1), HIGH (1.15), VERY HIGH(1.3).

Range of Potential Outcomes. The firm's margin of safety is shown in the graphicof a normal distribution. We consider a firm to be undervalued if its stock price fallsalong the green line and overvalued if the stock price falls along the red line. Weconsider the firm to be fairly valued if its stock price falls along the yellow line.

Return on Invested Capital. At Valuentum, we place considerable emphasis onreturn on invested capital (both with and without goodwill). The measure focuses onthe return (earnings) the company is generating on its operating assets and is superiorto return on equity and return on assets, which can be skewed by a firm's leverage orexcess cash balance, respectively. ValueTrend™. This is a proprietary Valuentum measure. ValueTrend™ indicates the

trajectory of the firm's return on invested capital (ROIC). Firms that earned an ROIClast year that was greater than the 3-year average of the measure earn a POSITIVErating. Firms that earned an ROIC last year that was less than the 3-year average of themeasure earn a NEGATIVE rating.

Technical Evaluation. We evaluate a firm's near-term and medium-term movingaverages and money flow index (MFI) to assign each firm a rating along thefollowing scale: VERY BULLISH, BULLISH, NEUTRAL, BEARISH, and VERYBEARISH.

Cash Flow Generation. Firms' cash flow generation capacity are measured along thescale of STRONG, MEDIUM, and WEAK. A firm with a 3-year historical free cashflow margin (free cash flow divided by sales) greater than 5% receives a STRONGrating, while firms earning less than 1% of sales as free cash flow receive a WEAKrating.

Stock Price Relative Strength. We assess the perfomance of the company's stockduring the past quarter, 13 weeks, relative to an ETF that mirrors the aggregateperformance of constituents of the stock market. Firms are measured along the scaleof STRONG, NEUTRAL, and WEAK. Companies that have outperformed themarket index by more than 2.5% during this 13-week period receive a STRONGrating, while firms that trailed the market index by more than 2.5% during this 13-week period receive a WEAK rating.

Financial Leverage. Based on the firm's normalized debt-to-EBITDA metric, we rank firms on the following scale: LOW, MEDIUM, and HIGH. Companies with a normalized debt-to-EBITDA ratio below 1.5 receive a LOW score, while those with a measure above 3 receive a HIGH score.

Money Flow Index (MFI). The MFI is a technical indicator that measures buyingand selling pressure based on both price and volume. Traders typically use thismeasure to identify potential reversals with overbought and oversold levels. We use a14-week measure to rank firms along the following scale: EXTREMELYOVERBOUGHT (>90), OVERBOUGHT (80-90), NEUTRAL (20-80), OVERSOLD(10-20), EXTREMELY OVERSOLD (0-10).

Upside/Downside Volume. Heavy volume on up days and lower volume on down days suggests that institutions are heavily participating in a stock's upward advance. We use the trailing 14-week average of upside and downside volume to calculate an informative ratio. We rank each firm's U/D volume ratio along the following scale: BULLISH, IMPROVING, DETERIORATING, and BEARISH.

Page 15

T Rating History Price Fair Value VBI11-Jan-22 $26.34 $35.00 715-Apr-21 $29.75 $34.00 618-Dec-20 $29.40 $33.00 711-Sep-20 $29.00 $31.00 414-May-20 $27.93 $29.00 316-Dec-19 $38.51 $40.00 720-Sep-19 $37.91 $40.00 718-Mar-19 $31.07 $38.00 75-Nov-18 $31.10 $38.00 315-Jun-18 $33.15 $40.00 316-Feb-18 $37.14 $42.00 313-Oct-17 $35.70 $39.00 37-Jul-17 $36.98 $40.00 517-Feb-17 $41.48 $40.00 6

Disclosures, Disclaimers & Additional SourcesTo send us feedback or if you have any questions, please contact us at [email protected]. We're always looking for ways to better serve your investment needs and improve our research.

Copyright (c) 2017 by Valuentum, Inc. All rights reserved.No part of this publication may be reproduced in any form or by any means.The information contained in this report is not represented or warranted to be accurate, correct,complete, or timely. This report is for informational purposes only and should not be considered asolicitation to buy or sell any security. No warranty or guarantee may be created or extended bysales or promotional materials, whether by email or in any other format. The securities or strategiesmentioned herein may not be suitable for all types of investors. The information contained in thisreport does not constitute any advice, especially on the tax consequences of making any particularinvestment decision. This material is not intended for any specific type of investor and does nottake into account an investor's particular investment objectives, financial situation or needs. Thisreport is not intended as a recommendation of the security highlighted or any particular investmentstrategy. Before acting on any information found in this report, readers should consider whethersuch an investment is suitable for their particular circumstances, perform their own due-diligence,and if necessary, seek professional advice. The sources of the data used in this report are believed by Valuentum to be reliable, but the data’saccuracy, completeness or interpretation cannot be guaranteed. Assumptions, opinions, andestimates are based on our judgment as of the date of the report and are subject to change withoutnotice. Valuentum is not responsible for any errors or omissions or for results obtained from the useof this report and accepts no liability for how readers may choose to utilize the content. In no eventshall Valuentum be liable to any party for any direct, indirect, incidental, exemplary, compensatory,punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, withoutlimitation, lost income or lost profits and opportunity costs) in connection with any use of theinformation contained in this document. Investors should consider this report as only a single factorin making their investment decision. Valuentum is not a money manager, is not a registered investment advisor, and does not offerbrokerage or investment banking services. Valuentum has not received any compensation from thecompany or companies highlighted in this report. Valuentum, its employees, independentcontractors and affiliates may have long, short or derivative positions in the securities mentionedherein. Information and data in Valuentum’s valuation models and analysis may not capture allsubjective, qualitative influences such as changes in management, business and political trends, orlegal and regulatory developments. Redistribution is prohibited without written permission. Readersshould be aware that information in this work may have changed between when this work waswritten or created and when it is read. There is risk of substantial loss associated with investing infinancial instruments. Valuentum's company-specific forecasts used in its discounted cash flow model are rules-based.These rules reflect the experience and opinions of Valuentum's analyst team. Historical data used inour valuation model is provided by Xignite and from other publicly available sources includingannual and quarterly regulatory filings. Stock price and volume data is provided by Xignite. Nowarranty is made regarding the accuracy of any data or any opinions. Valuentum's valuation modelis based on sound academic principles, and other forecasts in the model such as inflation and theequity risk premium are based on long-term averages. The Valuentum proprietary automated text-generation system creates text that will vary by company and may often change for the samecompany upon subsequent updates. Valuentum uses its own proprietary stock investment style and industry classification systems. Peercompanies are selected based on the opinions of the Valuentum analyst team. Research reports anddata are updated periodically, though Valuentum assumes no obligation to update its reports,opinions, or data following publication in any form or format. Performance assessment ofValuentum metrics, including the Valuentum Buying Index, is ongoing, and we intend to updateinvestors periodically, though Valuentum assumes no obligation to do so. Not all information isavailable on all companies. There may be a lag before reports and data are updated for stock splitsand stock dividends. Past simulated performance, whether backtested or walk-forward or other, is not a guarantee offuture results. For general information about Valuentum's products and services, please contact usat [email protected] or visit our website at www.valuentum.com.

The High Yield Dividend Newsletter portfolio, the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio are not real money portfolios. Any performance, including that in the Nelson Exclusive publication, is hypothetical and does not represent actual trading. Past performance is not a guarantee of future results.

Valuentum is an investment research publishing company.

Valuentum has not owned and does not own any shares of stocks mentioned on its website or in this report. President of Investment Research Brian Nelson does not own any shares of stocks mentioned on Valuentum's website or in this report. Majority share owner of Valuentum, Elizabeth Nelson, currently has exposure to HON in her retirement account.

If an independent contributor or employee mentions a stock he or she owns, we disclose it in the article/report that mentions the security. Please view individual articles on Valuentum's website for additional disclosures. Contact us to learn more about Valuentum's editorial policies.

Affiliate RelationshipCustomers of Valuentum acknowledge and agree that Valuentum’s affiliate, Pigeon Oak Capital Management, LLC (“Advisor”), may act as an investment advisor to other clients and receive fees for such services. The advice given and the actions taken with respect to such clients and Advisor’s own account may differ from opinions or the timing and nature of action taken with respect to Valuentum’s ratings or published research. Customers of Valuentum must further recognize that transactions in a specific security are not completed for Valuentum customers’ accounts because Valuentum does not have the authority to make trades or provide personalized advice for newsletter clients. The Advisor has discretion to make trades in its clients’ accounts without receiving prior authorization in each instance. Valuentum’s customers also acknowledge that in managing the Advisors’ clients’ assets, Advisor may purchase or sell securities in which Valuentum has an opposite opinion on, and Advisor, its members, officers, directors, or employees, directly or indirectly, have or may acquire a position or interest that contradicts that of Valuentum’s opinion. Due to the fiduciary relationship between Advisor and its clients, Valuentum’s customers will not receive alerts of trades done by Advisor, and trades done by Valuentum’s customers based on opinions of Valuentum might lag trades done by Advisor’s clients. Advisor or its affiliated persons may obtain material, nonpublic or other confidential information that, if disclosed, might affect an investor’s decision to buy, sell or hold a security. Under applicable law, Advisor or Valuentum and their affiliated persons cannot improperly disclose or use this information for their personal benefit or for the benefit of any person, including clients of Advisor or customers of Valuentum. If Advisor or any affiliated person obtains nonpublic or other confidential information about any issuer, Valuentum will have no obligation to disclose the information to customers of it, clients of Advisor or use it for their benefit.

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AT&T T FAIRLY VALUED Buying Index™ 6 Value Rating