Telephone and Data Systems, Inc.

NYSE:TDS Stock Report

Market Cap: US$3.9b

Telephone and Data Systems Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ($34.01) is trading above our estimate of fair value ($30.32)

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 Ratio0.8x
SalesUS$5.04b
Market CapUS$3.87b

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
1.4x0.7%US$5.3b
TIGO Millicom International Cellular
0.7x2.0%US$4.2b
VEON VEON
0.7x7.5%US$2.8b
GOGO Gogo
2.3x10.6%US$948.4m
TDS Telephone and Data Systems
0.8x-1.8%US$3.9b

Price-To-Sales vs Peers: TDS is good value based on its Price-To-Sales Ratio (0.8x) 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
0.08x4.9%US$22.62m
TIOG Tingo Group
0.001xn/aUS$2.52m
No more companies available in this PS range
TDS 0.8xIndustry Avg. 1.3xNo. of Companies2PS00.61.21.82.43+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TDS is good value based on its Price-To-Sales Ratio (0.8x) 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 Ratio0.8x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: TDS is expensive based on its Price-To-Sales Ratio (0.8x) 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$34.01
US$52.00
+52.9%
1.9%US$53.00US$51.00n/a2
Dec ’25US$34.18
US$45.50
+33.1%
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$18.00US$34.183
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

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:46
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Telephone and Data Systems, Inc. is covered by 13 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
William PowerBaird
Zachary SilverB. Riley Securities, Inc.
Keith SnyderCFRA Equity Research