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Fundamentals snapshot

T-Mobile US, Inc.

TMUS · NMS · Communication Services · Telecom Services

Current price

$159.10

52-week range

$147.90 - $230.54

Market cap

$170.66B

One-glance verdict

Undervalued

$516.21 our estimate vs market $159.10

Wall Street consensus: $236.84 (-54.1% lower than our fair-value estimate)

Balance sheet

Stretched

4.92x Stretched

Net debt $117.60B. Interest coverage shows how many times profit covers the interest bill.

What this company does

T-Mobile US, Inc.

T-Mobile US sells phone and internet plans, along with phones and other gadgets, primarily to people in the U.S. The money they make mainly comes from customers paying for their monthly phone service, which is a type of recurring revenue (money that comes in regularly, like a subscription). This is important because consistent recurring revenue helps T-Mobile plan for the future and invest in things like better cell towers.

Price history

How the share price has moved

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Earnings history

Last 8 quarters — what happened

Click any quarter to read the call summary and what the numbers say.

Free cash flow by quarter (oldest to newest)
FY2024 Q3 $4.18B FY2024 Q4 $3.34B FY2025 Q1 $4.40B FY2025 Q2 $4.60B FY2025 Q3 $4.82B FY2025 Q4 $4.18B FY2026 Q1 $4.60B FY2026 Q2 $4.80B
Revenue $22.79B
Net income $3.24B
Diluted EPS 2.99
Operating cash flow $7.50B
Free cash flow $4.80B
Revenue $23.11B
Net income $2.50B
Diluted EPS 2.27
Operating cash flow $7.22B
Free cash flow $4.60B
Revenue $24.33B
Net income $2.10B
Diluted EPS 1.89
Operating cash flow $6.65B
Free cash flow $4.18B
Revenue $21.96B
Net income $2.71B
Diluted EPS 2.41
Operating cash flow $7.46B
Free cash flow $4.82B
Revenue $21.13B
Net income $3.22B
Diluted EPS 2.84
Operating cash flow $6.99B
Free cash flow $4.60B
Revenue $20.89B
Net income $2.95B
Diluted EPS 2.58
Operating cash flow $6.85B
Free cash flow $4.40B
Revenue $21.87B
Net income $2.98B
Diluted EPS 2.56
Operating cash flow $5.55B
Free cash flow $3.34B
Revenue $20.16B
Net income $3.06B
Diluted EPS 2.61
Operating cash flow $6.14B
Free cash flow $4.18B

Is it cheap or expensive?

Fair value $516.21 vs current price $159.10

Wall Street consensus is the average analyst price target: $236.84 (-54.1% lower than our fair-value estimate).

Our most-likely fair value is $516.21 a share — about 224.5% above today's price of $159.10, so the stock currently looks cheap (undervalued).

undervalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 10.0% · Discount 7.2% · Terminal 3.0%

$516.21

Bear

Growth 5.0% · Discount 7.2% · Terminal 3.0%

$356.39

Bull

Growth 15.0% · Discount 7.2% · Terminal 3.0%

$724.77

Is it drowning in debt?

Stretched

Net debt $117.6B. Interest coverage 4.9x.

Net debt $117.60B
Interest coverage 4.92x

T-Mobile US, Inc.'s profit covers its interest bill about 4.9 times over. which is stronger than every peer shown here.

Stretched
Worse cushion Baseline Better cushion
TMUS BASELINE T-Mobile US, Inc.

Total debt $120.43B Interest coverage 4.92x This is the baseline the peer rows are being compared against.

4.92x
VZ Verizon Communications Inc.

Total debt $193.65B Interest coverage 4.37x -11% vs TMUS Has roughly the same debt cushion as TMUS.

4.37x -11% vs TMUS
T AT&T Inc.

Total debt $165.76B Interest coverage 3.67x -25% vs TMUS Carries about 1.3x less debt cushion than TMUS.

3.67x -25% vs TMUS
CMCSA Comcast Corporation

Total debt $90.38B Interest coverage 4.69x -5% vs TMUS Has roughly the same debt cushion as TMUS.

4.69x -5% vs TMUS
CHTR Charter Communications, Inc.

Total debt $96.71B Interest coverage 2.64x -46% vs TMUS Carries about 1.9x less debt cushion than TMUS.

2.64x -46% vs TMUS

What you should know

The case for and against TMUS

3 Rewards 1 Risk

Rewards

  • Revenue grew 4.4% last year.
  • Returns 18.0% on equity, ahead of 40% of its peers.
  • Free cash flow was positive in 6/10 years.

Risks

  • Net debt grew 8.7% over 3 years.

The numbers

All the key metrics, grouped by purpose

Tap any ? icon to learn what it means.

Valuation

How expensive the stock looks

P/E (TTM)
16.62x
Forward P/E
11.03x
P/B
3.04x
P/S
1.85x
EV/EBITDA
8.39x
PEG ratio
0.58x

Profitability

How much profit each dollar creates

Gross margin
63.1%
Operating margin
25.2%
Net margin
11.5%
ROE
18.0%
ROA
6.0%

Health

Liquidity and balance-sheet strength

Debt / equity
2.14x
Current ratio
0.92x
Quick ratio
0.58x
Total debt
$120.43B
Total cash
$2.82B

Growth

How the business has been compounding

Revenue TTM
$92.19B
Revenue 5Y CAGR
2.5%
EPS TTM
9.57
EPS 5Y CAGR
67.7%

Cash flow

How much cash the business throws off

Operating CF TTM
$28.83B
Free CF TTM
$18.00B
FCF margin
19.5%

Dividend

Shareholder payout

Yield
2.9%
Payout ratio
41.2%
Last ex-div date
2026-11-25