United States Cellular Corporation

NYSE:USM Stock Report

Market Cap: US$5.3b

United States Cellular Valuation

Is USM 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 USM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: USM ($63.27) is trading below our estimate of fair value ($344.35)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for USM. This is calculated by dividing USM's market cap by their current revenue.
What is USM's PS Ratio?
PS Ratio1.4x
SalesUS$3.80b
Market CapUS$5.34b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for USM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
TDS Telephone and Data Systems
0.7x-1.8%US$3.6b
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
USM United States Cellular
1.4x0.9%US$5.3b

Price-To-Sales vs Peers: USM is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (1.1x).


Price to Sales Ratio vs Industry

How does USM'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
USM 1.4xIndustry Avg. 1.3xNo. of Companies3PS00.81.62.43.24+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: USM is expensive based on its Price-To-Sales Ratio (1.4x) compared to the Global Wireless Telecom industry average (1.3x).


Price to Sales Ratio vs Fair Ratio

What is USM'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.

USM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: USM is expensive based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).


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 USM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$63.27
US$74.00
+17.0%
18.5%US$86.00US$52.00n/a4
Nov ’25US$57.49
US$70.00
+21.8%
19.5%US$85.00US$52.00n/a3
Oct ’25US$55.55
US$66.67
+20.0%
15.6%US$75.00US$52.00n/a3
Sep ’25US$55.62
US$66.67
+19.9%
15.6%US$75.00US$52.00n/a3
Aug ’25US$54.70
US$65.33
+19.4%
14.9%US$75.00US$52.00n/a3
Jul ’25US$54.89
US$65.33
+19.0%
14.9%US$75.00US$52.00n/a3
Jun ’25US$55.46
US$65.33
+17.8%
14.9%US$75.00US$52.00n/a3
May ’25US$36.33
US$42.44
+16.8%
21.7%US$55.00US$25.00n/a7
Apr ’25US$35.89
US$42.44
+18.3%
21.7%US$55.00US$25.00n/a7
Mar ’25US$36.00
US$42.44
+17.9%
21.7%US$55.00US$25.00n/a7
Feb ’25US$44.25
US$42.16
-4.7%
22.6%US$55.00US$24.00n/a7
Jan ’25US$41.54
US$42.57
+2.5%
22.8%US$55.00US$24.00n/a7
Dec ’24US$47.85
US$42.57
-11.0%
22.8%US$55.00US$24.00n/a7
Nov ’24US$42.94
US$42.17
-1.8%
24.0%US$53.00US$24.00US$57.496
Oct ’24US$42.97
US$42.17
-1.9%
24.0%US$53.00US$24.00US$55.556
Sep ’24US$45.94
US$38.80
-15.5%
31.2%US$53.00US$24.00US$55.625
Aug ’24US$17.48
US$23.40
+33.9%
16.6%US$27.00US$16.00US$54.705
Jul ’24US$17.63
US$23.20
+31.6%
16.0%US$26.00US$16.00US$54.895
Jun ’24US$14.23
US$23.20
+63.0%
16.0%US$26.00US$16.00US$55.465
May ’24US$20.99
US$27.20
+29.6%
14.4%US$34.00US$22.00US$36.335
Apr ’24US$20.73
US$26.80
+29.3%
15.4%US$34.00US$22.00US$35.895
Mar ’24US$23.31
US$26.80
+15.0%
15.4%US$34.00US$22.00US$36.005
Feb ’24US$24.83
US$28.60
+15.2%
21.8%US$37.00US$20.00US$44.255
Jan ’24US$20.85
US$31.20
+49.6%
14.8%US$37.00US$24.00US$41.545
Dec ’23US$20.51
US$31.20
+52.1%
14.8%US$37.00US$24.00US$47.855
Nov ’23US$30.78
US$34.83
+13.2%
7.7%US$39.00US$32.00US$42.946

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


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