Telephone and Data Systems, Inc.

NYSE:TDS Stock Report

Market Cap: US$3.6b

Telephone and Data Systems Valuation

Is TDS 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: TDS ($31.71) is trading above our estimate of fair value ($30.38)

Significantly Below Fair Value: TDS is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As TDS is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TDS. This is calculated by dividing TDS's market cap by their current revenue.
What is TDS's PS Ratio?
PS Ratio0.7x
SalesUS$5.04b
Market CapUS$3.59b

Price to Sales Ratio vs Peers

How does TDS's PS Ratio compare to its peers?

The above table shows the PS ratio for TDS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
USM United States Cellular
1.4x0.9%US$5.3b
TIGO Millicom International Cellular
0.8x2.1%US$4.4b
VEON VEON
0.6x7.7%US$2.2b
GOGO Gogo
2.4x10.6%US$993.7m
TDS Telephone and Data Systems
0.7x-1.8%US$3.6b

Price-To-Sales vs Peers: TDS is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

How does TDS's PS Ratio compare vs other companies in the US Wireless Telecom Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
KORE KORE Group Holdings
0.1x5.1%US$33.11m
TIOG Tingo Group
0.0005xn/aUS$1.26m
No more companies available in this PS range
TDS 0.7xIndustry Avg. 1.3xNo. of Companies3PS00.81.62.43.24+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TDS is good value based on its Price-To-Sales Ratio (0.7x) compared to the Global Wireless Telecom industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

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

TDS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: TDS is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

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 TDS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$31.71
US$45.50
+43.5%
12.1%US$51.00US$40.00n/a2
May ’25US$15.85
US$26.67
+68.2%
32.5%US$38.00US$17.00n/a3
Apr ’25US$15.67
US$26.67
+70.2%
32.5%US$38.00US$17.00n/a3
Mar ’25US$15.41
US$26.67
+73.0%
32.5%US$38.00US$17.00n/a3
Feb ’25US$19.20
US$27.00
+40.6%
30.7%US$38.00US$18.00n/a3
Jan ’25US$18.35
US$27.00
+47.1%
30.7%US$38.00US$18.00n/a3
Dec ’24US$21.12
US$27.00
+27.8%
30.7%US$38.00US$18.00n/a3
Nov ’24US$18.54
US$26.33
+42.0%
32.3%US$38.00US$18.00US$27.483
Oct ’24US$18.31
US$26.33
+43.8%
32.3%US$38.00US$18.00US$23.413
Sep ’24US$21.41
US$25.33
+18.3%
37.6%US$38.00US$15.00US$23.623
Aug ’24US$7.93
US$12.33
+55.5%
25.1%US$15.00US$8.00US$21.113
Jul ’24US$8.23
US$14.67
+78.2%
6.4%US$16.00US$14.00US$20.713
Jun ’24US$6.60
US$14.67
+122.2%
6.4%US$16.00US$14.00US$19.893
May ’24US$9.99
US$17.00
+70.2%
12.7%US$20.00US$15.00US$15.853
Apr ’24US$10.51
US$17.00
+61.8%
12.7%US$20.00US$15.00US$15.673
Mar ’24US$12.11
US$17.00
+40.4%
12.7%US$20.00US$15.00US$15.413
Feb ’24US$13.84
US$18.67
+34.9%
18.2%US$22.00US$14.00US$19.203
Jan ’24US$10.49
US$18.67
+77.9%
18.2%US$22.00US$14.00US$18.353
Dec ’23US$10.40
US$18.67
+79.5%
18.2%US$22.00US$14.00US$21.123
Nov ’23US$16.89
US$22.50
+33.2%
6.7%US$25.00US$21.00US$18.544

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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