Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 6.79%, lower than industry average of 9.62%.

Growth Trajectory

Profitability

In the growth phase company makes 22.36% profit on every dollar of sales, higher than industry average of 15.85%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.82% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
230.15B USD
Equity Value
122.55B USD
FCF Yield
57.81%
Average ROIC
10.29%
Cost of Capital
8.19%
P/E Ratio
18.28x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues84.05B USD81.40B USD
Operating Income or EBIT19.44B USD18.12B USD
Interest Expense3.52B USD3.41B USD
Book Value Of Equity61.11B USD61.74B USD
Book Value Of Debt117.86B USD114.40B USD
Cash and Marketable Securities10.26B USD5.41B USD
Number of Shares Outstanding1.13B--
Minority interests0 USD0 USD
Current Stock Price242.72 USD--
Effective Tax Rate23.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-6.36%
3.25%Company
vs
9.62%Industry
Below Industry
Operating Margin
+7.28%
23.12%Company
vs
15.84%Industry
Above Industry
T-Mobile US, Inc. demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 58% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 133.83B USD Add
Present Value (Cash Flow Over Next 10 Years) 96.32B USD Add
Value of Operating Assets 230.15B USD Sub-total
Debt 117.86B USD Subtract
Minority Interests — Subtract
Cash 10.25B USD Add
Value of Equity 122.55B USD Sub-total
Number of Shares 1.13B shares Divisor
Estimated Value per Share (Fair Value) 108.70 USD Total
Current Market Price 242.72 USD Reference

Financial Projections

Total FCF Present Value
96.32B USD
Avg Revenue Growth
5.38%
Avg Operating Margin
22.19%
Avg ROIC
10.29%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue88.66B USD94.69B USD101.12B USD107.99B USD115.33B USD122.66B USD129.92B USD137.04B USD143.94B USD150.56B USD157.49B USD
Growth Rate 5.48% 6.79% 6.79% 6.79% 6.79% 6.35% 5.91% 5.47% 5.03% 4.59% 4.59%
PROFITABILITY
Operating Income20.50B USD21.41B USD22.61B USD23.87B USD25.20B USD26.80B USD28.39B USD29.94B USD31.45B USD32.90B USD34.41B USD
Operating Margin 23.12% 22.61% 22.36% 22.10% 21.85% 21.85% 21.85% 21.85% 21.85% 21.85% 21.85%
EBIT (1-tax)15.78B USD16.49B USD17.41B USD18.38B USD19.40B USD20.53B USD21.63B USD22.69B USD23.71B USD24.67B USD25.81B USD
CASH FLOW
Reinvestment3.19B USD3.40B USD3.63B USD3.88B USD3.88B USD7.68B USD7.53B USD7.31B USD7.01B USD7.33B USD13.44B USD
Free Cash Flow12.59B USD13.08B USD13.77B USD14.49B USD15.52B USD12.84B USD14.09B USD15.38B USD16.70B USD17.34B USD12.36B USD
Terminal Value--------------------292.31B USD
Present Value11.68B USD11.25B USD10.98B USD10.72B USD10.65B USD8.15B USD8.27B USD8.32B USD8.32B USD7.93B USD—
EFFICIENCY
ROIC 9.35% 9.59% 9.93% 10.27% 10.61% 10.99% 11.12% 11.24% 11.33% 11.41% 8.83%
Cost of Capital 7.82% 7.82% 7.82% 7.82% 7.82% 8.02% 8.22% 8.42% 8.62% 8.83% 8.83%
Sales/Capital 1.88x 1.88x 1.88x 1.88x 1.88x 0.94x 0.94x 0.94x 0.94x 0.94x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)