T-Mobile (TMUS) Valuation Check as New CEO and Aggressive Customer Offers Signal Strategic Shift

T-Mobile US (TMUS) is stepping into a new chapter as Srini Gopalan prepares to take over as CEO while Mike Sievert moves to vice chairman, just as the company leans harder into retention and switching promos.

See our latest analysis for T-Mobile US.

Despite these leadership and strategy shifts, the 1 year total shareholder return of negative 7.11 percent and 30 day share price return of negative 6.43 percent show momentum has cooled. However, the 3 year total shareholder return of 47.91 percent still reflects a solid long term compounding story.

If T-Mobile’s pivot has you rethinking the broader telecom and tech landscape, this is a good moment to explore fast growing stocks with high insider ownership as potential next wave candidates.

With earnings still projected to grow nearly 20 percent next year and the stock trading well below analyst targets, is T-Mobile quietly undervalued here, or is the market already pricing in every bit of that future growth?

Most Popular Narrative: 28% Undervalued

With the most followed narrative putting fair value near 277 dollars versus a 199 dollar last close, the disconnect hinges on how far earnings can stretch.

Analysts expect earnings to reach 17.3 billion dollars (and earnings per share of 16.46 dollars) by about September 2028, up from 12.2 billion dollars today. However, there is some disagreement amongst the analysts with the more bearish ones expecting earnings as low as 14.0 billion dollars.

Read the complete narrative.

Want to see what is powering that earnings leap, and why the projected profit margins and future multiple look more like a high growth platform than a mature telco, not a sleepy utility stock, but a cash engine in disguise?

Result: Fair Value of $277.08 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside still hinges on smooth execution, as rising competitive promos and heavy upfront fiber investment are both capable of squeezing margins and delaying payoffs.

Find out about the key risks to this T-Mobile US narrative.

Build Your Own T-Mobile US Narrative

If you see the story differently or just want to test your own assumptions, you can build a fresh narrative in minutes: Do it your way.

A great starting point for your T-Mobile US research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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