TMUS PE Ratio & Valuation,Is TMUS Overvalued

TMUS Relative Valuation

TMUS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TMUS is overvalued; if below, it's undervalued.

Historical Valuation

T-Mobile US Inc (TMUS) is now in the Fair zone, suggesting that its current forward PE ratio of 18.51 is considered Fairly compared with the five-year average of 28.90. The fair price of T-Mobile US Inc (TMUS) is between 150.59 to 399.75 according to relative valuation methord.

Relative Value

Fair Zone

150.59-399.75

Current Price：196.82

Fair

18.51

9.28

EV/EBITDA

T-Mobile US Inc. (TMUS) has a current EV/EBITDA of 9.28. The 5-year average EV/EBITDA is 9.91. The thresholds are as follows: Strongly Undervalued below 8.23, Undervalued between 8.23 and 9.07, Fairly Valued between 10.75 and 9.07, Overvalued between 10.75 and 11.59, and Strongly Overvalued above 11.59. The current Forward EV/EBITDA of 9.28 falls within the Historic Trend Line -Fairly Valued range.

17.23

EV/EBIT

T-Mobile US Inc. (TMUS) has a current EV/EBIT of 17.23. The 5-year average EV/EBIT is 23.66. The thresholds are as follows: Strongly Undervalued below 7.90, Undervalued between 7.90 and 15.78, Fairly Valued between 31.55 and 15.78, Overvalued between 31.55 and 39.43, and Strongly Overvalued above 39.43. The current Forward EV/EBIT of 17.23 falls within the Historic Trend Line -Fairly Valued range.

2.38

T-Mobile US Inc. (TMUS) has a current PS of 2.38. The 5-year average PS is 2.38. The thresholds are as follows: Strongly Undervalued below 1.45, Undervalued between 1.45 and 1.92, Fairly Valued between 2.84 and 1.92, Overvalued between 2.84 and 3.30, and Strongly Overvalued above 3.30. The current Forward PS of 2.38 falls within the Historic Trend Line -Fairly Valued range.

7.66

P/OCF

T-Mobile US Inc. (TMUS) has a current P/OCF of 7.66. The 5-year average P/OCF is 9.71. The thresholds are as follows: Strongly Undervalued below 7.45, Undervalued between 7.45 and 8.58, Fairly Valued between 10.84 and 8.58, Overvalued between 10.84 and 11.96, and Strongly Overvalued above 11.96. The current Forward P/OCF of 7.66 falls within the Undervalued range.

11.69

P/FCF

T-Mobile US Inc. (TMUS) has a current P/FCF of 11.69. The 5-year average P/FCF is 16.73. The thresholds are as follows: Strongly Undervalued below 5.21, Undervalued between 5.21 and 10.97, Fairly Valued between 22.50 and 10.97, Overvalued between 22.50 and 28.26, and Strongly Overvalued above 28.26. The current Forward P/FCF of 11.69 falls within the Historic Trend Line -Fairly Valued range.

T-Mobile US Inc (TMUS) has a current Price-to-Book (P/B) ratio of 3.69. Compared to its 3-year average P/B ratio of 3.47 , the current P/B ratio is approximately 6.40% higher. Relative to its 5-year average P/B ratio of 3.04, the current P/B ratio is about 21.36% higher. T-Mobile US Inc (TMUS) has a Forward Free Cash Flow (FCF) yield of approximately 7.68%. Compared to its 3-year average FCF yield of 4.48%, the current FCF yield is approximately 71.31% lower. Relative to its 5-year average FCF yield of 2.81% , the current FCF yield is about 173.18% lower.

3.69

P/B

Median3y

3.47

Median5y

3.04

7.68

FCF Yield

Median3y

4.48

Median5y

2.81

Competitors Valuation Multiple

The average P/S ratio for TMUS's competitors is 1.55, providing a benchmark for relative valuation. T-Mobile US Inc Corp (TMUS) exhibits a P/S ratio of 2.38, which is 53.43% above the industry average. Given its robust revenue growth of 8.90%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TMUS decreased by 15.32% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 20.16B to 21.96B.

The secondary factor is the P/E Change, contributed -5.70%to the performance.

Overall, the performance of TMUS in the past 1 year is driven by Revenue Growth. Which is more sustainable.

8.90%

20.16B → 21.96B

Revenue Growth

-18.52%

15.17 → 12.36

Margin Expansion

-5.70%

20.39 → 19.22

P/E Change

-15.32%

232.97 → 197.29

Mkt Cap Growth

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Frequently Asked Questions

Is T-Mobile US Inc (TMUS) currently overvalued or undervalued?

What is T-Mobile US Inc (TMUS) fair value?

TMUS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of T-Mobile US Inc (TMUS) is between 150.59 to 399.75 according to relative valuation methord.

How does TMUS's valuation metrics compare to the industry average?

What is the current P/B ratio for T-Mobile US Inc (TMUS) as of Jan 09 2026?

As of Jan 09 2026, T-Mobile US Inc (TMUS) has a P/B ratio of 3.69. This indicates that the market values TMUS at 3.69 times its book value.

What is the current FCF Yield for T-Mobile US Inc (TMUS) as of Jan 09 2026?

As of Jan 09 2026, T-Mobile US Inc (TMUS) has a FCF Yield of 7.68%. This means that for every dollar of T-Mobile US Inc’s market capitalization, the company generates 7.68 cents in free cash flow.

What is the current Forward P/E ratio for T-Mobile US Inc (TMUS) as of Jan 09 2026?

As of Jan 09 2026, T-Mobile US Inc (TMUS) has a Forward P/E ratio of 18.51. This means the market is willing to pay $18.51 for every dollar of T-Mobile US Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for T-Mobile US Inc (TMUS) as of Jan 09 2026?

As of Jan 09 2026, T-Mobile US Inc (TMUS) has a Forward P/S ratio of 2.38. This means the market is valuing TMUS at $2.38 for every dollar of expected revenue over the next 12 months.

TMUS Valuation