Telephone and Data Systems, Inc. (TDS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-207.3%

-$35.66

vs $33.25 price

Levered DCF

-$3.63

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.82

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-62.12×	-40.13×	-3.64×	-149.86×	19.75×	9.38×	23.99×	26.89×
P/B	0.98×	0.76×	0.4×	0.2×	0.39×	0.44×	0.62×	0.8×
P/S	3.84×	0.78×	0.4×	0.22×	0.43×	0.41×	0.56×	0.71×
EV / EBITDA	10.68×	7.18×	10.24×	5.22×	5.07×	4.36×	5.18×	4.78×
Gross margin	-5.0%	57.0%	54.8%	52.6%	53.6%	54.9%	54.8%	54.3%
Operating margin	-5.0%	1.3%	-8.0%	2.3%	4.9%	5.0%	3.5%	4.0%
Net margin	-0.5%	-0.6%	-9.7%	1.1%	2.9%	4.3%	2.3%	2.6%
Current ratio	2.1×	1.56×	1.4×	1.34×	1.75×	2.62×	2×	2.65×
Debt / equity	0.41×	1×	0.99×	0.82×	0.68×	0.94×	0.72×	0.53×
Interest coverage	-0.55×	0.23×	-1.7×	0.7×	1.13×	1.54×	1.08×	1.19×
Dividend yield	1.9%	2.7%	7.4%	12.6%	5.1%	3.7%	2.6%	2.0%
Payout ratio	-1405.9%	-371.4%	-30.6%	243.5%	76.3%	34.5%	62.0%	53.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-0.1%	-0.5%	-9.6%	1.1%	2.6%	4.7%	2.6%	3.0%
Return on invested capital	-0.8%	0.5%	-3.2%	0.5%	1.8%	2.1%	1.3%	1.8%
Return on assets	-0.1%	-0.2%	-3.6%	0.4%	1.2%	1.8%	1.1%	1.4%
Free cash flow yield	4.1%	6.2%	-9.6%	-51.8%	-2.1%	7.7%	2.0%	6.6%
Earnings yield	-0.1%	-0.7%	-24.1%	5.2%	6.7%	10.7%	4.2%	3.7%
Enterprise value	$5.9B	$8.6B	$7B	$5.6B	$6B	$5.2B	$5.8B	$5.2B
Net debt / EBITDA	2.15×	3.94×	7.2×	4.11×	3.11×	2.58×	2.59×	1.41×
Cash conversion cycle (days)	1	60	52	50	47	36	50	46