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 19.54 is considered Fairly compared with the five-year average of 29.40. The fair price of T-Mobile US Inc (TMUS) is between 155.46 to 407.80 according to relative valuation methord.
Relative Value
Fair Zone
155.46-407.80
Current Price：208.51
Fair
19.50
PE
1Y
3Y
5Y
Trailing
Forward
9.55
EV/EBITDA
T-Mobile US Inc. (TMUS) has a current EV/EBITDA of 9.55. The 5-year average EV/EBITDA is 9.91. The thresholds are as follows: Strongly Undervalued below 8.24, Undervalued between 8.24 and 9.08, Fairly Valued between 10.75 and 9.08, Overvalued between 10.75 and 11.59, and Strongly Overvalued above 11.59. The current Forward EV/EBITDA of 9.55 falls within the Historic Trend Line -Fairly Valued range.
17.63
EV/EBIT
T-Mobile US Inc. (TMUS) has a current EV/EBIT of 17.63. The 5-year average EV/EBIT is 23.94. The thresholds are as follows: Strongly Undervalued below 8.06, Undervalued between 8.06 and 16.00, Fairly Valued between 31.89 and 16.00, Overvalued between 31.89 and 39.83, and Strongly Overvalued above 39.83. The current Forward EV/EBIT of 17.63 falls within the Historic Trend Line -Fairly Valued range.
2.49
PS
T-Mobile US Inc. (TMUS) has a current PS of 2.49. The 5-year average PS is 2.37. The thresholds are as follows: Strongly Undervalued below 1.45, Undervalued between 1.45 and 1.91, Fairly Valued between 2.84 and 1.91, Overvalued between 2.84 and 3.30, and Strongly Overvalued above 3.30. The current Forward PS of 2.49 falls within the Historic Trend Line -Fairly Valued range.
8.00
P/OCF
T-Mobile US Inc. (TMUS) has a current P/OCF of 8.00. The 5-year average P/OCF is 9.75. The thresholds are as follows: Strongly Undervalued below 7.54, Undervalued between 7.54 and 8.65, Fairly Valued between 10.86 and 8.65, Overvalued between 10.86 and 11.97, and Strongly Overvalued above 11.97. The current Forward P/OCF of 8.00 falls within the Undervalued range.
12.21
P/FCF
T-Mobile US Inc. (TMUS) has a current P/FCF of 12.21. The 5-year average P/FCF is 17.19. The thresholds are as follows: Strongly Undervalued below 4.46, Undervalued between 4.46 and 10.83, Fairly Valued between 23.55 and 10.83, Overvalued between 23.55 and 29.91, and Strongly Overvalued above 29.91. The current Forward P/FCF of 12.21 falls within the Historic Trend Line -Fairly Valued range.
T-Mobile US Inc (TMUS) has a current Price-to-Book (P/B) ratio of 3.86. Compared to its 3-year average P/B ratio of 3.43 , the current P/B ratio is approximately 12.29% higher. Relative to its 5-year average P/B ratio of 3.02, the current P/B ratio is about 27.63% higher. T-Mobile US Inc (TMUS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.29%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.66% , the current FCF yield is about -100.00% lower.
3.85
P/B
Median3y
3.43
Median5y
3.02
7.35
FCF Yield
Median3y
4.29
Median5y
2.66
Competitors Valuation Multiple
The average P/S ratio for TMUS's competitors is 0.76, providing a benchmark for relative valuation. T-Mobile US Inc Corp (TMUS) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 8.90%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TMUS decreased by 5.76% 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 3.86%to the performance.
Overall, the performance of TMUS in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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