T-Mobile US Valuation

Is TMUS * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TMUS * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TMUS * (MX$4735) is trading below our estimate of fair value (MX$8398.33)

Significantly Below Fair Value: TMUS * is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for TMUS *?

Key metric: As TMUS * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TMUS *. This is calculated by dividing TMUS *'s market cap by their current earnings.
What is TMUS *'s PE Ratio?
PE Ratio25.7x
EarningsUS$10.37b
Market CapUS$266.30b

Price to Earnings Ratio vs Peers

How does TMUS *'s PE Ratio compare to its peers?

The above table shows the PE ratio for TMUS * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.5x
AMX B América Móvil. de
24.5x22.6%Mex$925.9b
941 China Mobile
11x2.8%HK$1.7t
532454 Bharti Airtel
80.1x37.4%₹9.7t
9984 SoftBank Group
6.6x-51.2%JP¥14.2t
TMUS * T-Mobile US
25.7x11.1%Mex$266.3b

Price-To-Earnings vs Peers: TMUS * is good value based on its Price-To-Earnings Ratio (25.7x) compared to the peer average (30.5x).


Price to Earnings Ratio vs Industry

How does TMUS *'s PE Ratio compare vs other companies in the Global Wireless Telecom Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies9PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TMUS * is expensive based on its Price-To-Earnings Ratio (25.7x) compared to the Global Wireless Telecom industry average (16.2x).


Price to Earnings Ratio vs Fair Ratio

What is TMUS *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TMUS * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TMUS *'s Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TMUS * forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentMex$4,735.00
Mex$4,933.18
+4.2%
9.6%Mex$5,631.95Mex$3,720.10n/a26
Dec ’25Mex$5,080.00
Mex$4,944.94
-2.7%
8.3%Mex$5,463.61Mex$3,813.19n/a27
Nov ’25Mex$4,459.88
Mex$4,766.02
+6.9%
10.7%Mex$5,304.24Mex$2,871.90n/a27
Oct ’25Mex$3,989.59
Mex$4,233.02
+6.1%
10.4%Mex$5,099.43Mex$2,814.10n/a28
Sep ’25Mex$3,940.00
Mex$4,032.80
+2.4%
9.0%Mex$4,922.68Mex$2,825.22n/a28
Aug ’25Mex$3,281.00
Mex$3,797.53
+15.7%
9.1%Mex$4,693.03Mex$2,590.55n/a27
Jul ’25Mex$3,245.69
Mex$3,509.22
+8.1%
8.4%Mex$4,407.67Mex$2,534.41n/a28
Jun ’25Mex$2,896.36
Mex$3,209.41
+10.8%
8.8%Mex$4,069.70Mex$2,340.08n/a27
May ’25n/a
Mex$3,238.08
0%
8.8%Mex$4,115.18Mex$2,354.40n/a28
Apr ’25n/a
Mex$3,126.40
0%
9.1%Mex$3,989.81Mex$2,282.67n/a27
Mar ’25Mex$2,770.00
Mex$3,191.18
+15.2%
9.8%Mex$4,102.44Mex$2,220.62n/a28
Feb ’25Mex$2,772.00
Mex$3,196.15
+15.3%
10.0%Mex$4,130.09Mex$2,235.58n/a28
Jan ’25Mex$2,710.06
Mex$3,087.57
+13.9%
11.0%Mex$4,055.77Mex$2,242.06n/a28
Dec ’24Mex$2,621.45
Mex$3,111.25
+18.7%
11.4%Mex$4,118.89Mex$2,076.80Mex$5,080.0029
Nov ’24Mex$2,545.00
Mex$3,158.79
+24.1%
11.5%Mex$4,185.89Mex$2,110.58Mex$4,459.8829
Oct ’24Mex$2,439.13
Mex$3,034.02
+24.4%
11.2%Mex$3,864.49Mex$2,035.12Mex$3,989.5929
Sep ’24Mex$2,360.00
Mex$3,031.61
+28.5%
11.2%Mex$3,846.47Mex$1,978.79Mex$3,940.0030
Aug ’24Mex$2,380.00
Mex$2,957.25
+24.3%
11.2%Mex$3,753.32Mex$1,930.87Mex$3,281.0030
Jul ’24Mex$2,310.01
Mex$3,014.05
+30.5%
10.9%Mex$3,850.83Mex$1,981.04Mex$3,245.6931
Jun ’24Mex$2,434.00
Mex$3,111.84
+27.8%
10.9%Mex$3,949.52Mex$2,031.81Mex$2,896.3630
May ’24Mex$2,592.00
Mex$3,210.95
+23.9%
8.9%Mex$4,033.94Mex$2,653.43n/a28
Apr ’24Mex$2,604.67
Mex$3,234.62
+24.2%
9.9%Mex$4,046.60Mex$2,661.77n/a29
Mar ’24Mex$2,651.00
Mex$3,337.48
+25.9%
9.6%Mex$4,125.16Mex$2,750.11Mex$2,770.0029
Feb ’24Mex$2,823.00
Mex$3,333.80
+18.1%
9.6%Mex$4,133.86Mex$2,755.91Mex$2,772.0029
Jan ’24Mex$2,705.00
Mex$3,514.04
+29.9%
9.8%Mex$4,385.97Mex$2,923.98Mex$2,710.0630
Dec ’23Mex$2,880.00
Mex$3,423.72
+18.9%
9.8%Mex$4,270.04Mex$2,846.69Mex$2,621.4530

Analyst Forecast: Target price is less than 20% higher than the current share price.


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