Telecommunications Services · NASDAQ
Current Price
$198.17
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on T-Mobile US, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to 108.7 million customers in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, wearables, and tablets and other mobile communication devices, as well as wireless devices and accessories. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, and its websites. It also sells its devices to dealers and other third-party distributors for resale through independent third-party retail outlets and various third-party websites. As of December 31, 2021, it operated approximately 102,000 macro cell and 41,000 small cell/distributed antenna system sites. The company was founded in 1994 and is headquartered in Bellevue, Washington.
ROIC (TTM)
7.0%
ROE (TTM)
17.8%
FCF Yield
8.33%
Based on trailing twelve-month data, TMUS shows a free cash flow per share of N/A and a ROIC of 7.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 8.33% are important context metrics when evaluating TMUS's stock valuation relative to peers.
The intrinsic value of TMUS depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether TMUS is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $198.17. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on T-Mobile US, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Telecommunications Services industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting TMUS's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For T-Mobile US, Inc., this means projecting how much free cash flow the Telecommunications Services will produce over the next 5-10 years, then discounting those amounts to today's dollars. TMUS's ROIC of 7.0% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For TMUS, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
