Telecommunications Services · NASDAQ
Current Price
$198.17
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on T-Mobile US, Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
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.
Earnings Yield
4.84%
ROE (TTM)
17.8%
Based on trailing twelve-month data, TMUS has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of TMUS reflects how much investors pay per dollar of T-Mobile US, Inc.'s earnings. This metric is most useful when compared to Telecommunications Services peers and the company's own historical range.
Whether TMUS is overvalued depends on comparing its PE ratio to Telecommunications Services peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value T-Mobile US, Inc. using PE: (1) Compare the current PE against the Telecommunications Services median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how TMUS is priced versus Telecommunications Services peers. DCF provides an absolute value based on projected free cash flows. For TMUS, with a strong ROE of 17.8%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
