T-Mobile US, Inc. (TMUS) 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

+78.7%

$282.99

vs $158.33 price

Levered DCF

$103.64

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.53

Distress zone

Rating

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	20.82×	22.76×	22.84×	67.63×	47.93×	50.32×	19.32×	18.71×
P/B	3.87×	4.18×	2.94×	2.51×	2.09×	2.36×	2.33×	2.19×
P/S	2.59×	3.17×	2.42×	2.2×	1.81×	2.26×	1.49×	1.25×
EV / EBITDA	11.04×	11.82×	11×	14×	10.7×	12.32×	8.72×	5.81×
Gross margin	47.6%	63.6%	61.6%	54.5%	54.3%	58.7%	58.8%	57.6%
Operating margin	21.2%	22.1%	18.2%	8.2%	8.6%	9.7%	12.7%	12.3%
Net margin	12.4%	13.9%	10.6%	3.3%	3.8%	4.5%	7.7%	6.7%
Current ratio	1×	0.91×	0.91×	0.77×	0.89×	1.1×	0.74×	0.81×
Debt / equity	2.07×	1.85×	1.76×	1.6×	1.57×	1.64×	1.47×	0.63×
Interest coverage	5.33×	5.28×	4.28×	1.95×	2.06×	2.46×	5.04×	3.91×
Dividend yield	1.8%	1.3%	0.4%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	37.5%	29.1%	9.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	18.6%	18.4%	12.9%	3.7%	4.4%	4.7%	12.0%	11.7%
Return on invested capital	7.0%	7.1%	5.5%	2.7%	3.2%	2.7%	5.5%	6.2%
Return on assets	5.0%	5.5%	4.0%	1.2%	1.5%	1.5%	4.0%	4.0%
Free cash flow yield	6.7%	3.9%	4.1%	-0.3%	-5.4%	-2.4%	-0.8%	-3.3%
Earnings yield	4.8%	4.4%	4.4%	1.5%	2.1%	2.0%	5.2%	5.3%
Enterprise value	$345.7B	$367.1B	$298.7B	$282.3B	$246.8B	$251.2B	$107.8B	$68.4B
Net debt / EBITDA	3.73×	3.51×	4×	5.32×	4.43×	4.75×	3.3×	1.22×
Cash conversion cycle (days)	25	12	4	-10	2	3	-30	-51