T-Mobile US, Inc. (TMUS)
NEUTRALFundamental
73
Price
$181.84
Market Cap
$195.89B
Part 1 · What the company is worth
Overview
T-Mobile US is the third-largest US wireless carrier, providing mobile phone and home internet service to consumers and businesses over its own nationwide network, plus selling phones and other devices. Since completing its 2020 merger with Sprint, it has built out one of the country's largest 5G networks and has been taking subscribers from Verizon and AT&T, particularly in smaller cities, rural areas and price-sensitive segments where its network used to lag.
How it makes money
Revenue comes mainly from monthly subscription fees for wireless and home broadband plans (postpaid and prepaid), plus device sales usually financed through instalment plans, and a smaller wholesale business reselling network capacity to other carriers. Because the network's infrastructure cost is largely fixed once built, each additional subscriber added to an existing cell site carries a high incremental margin, so subscriber growth converts efficiently into profit once the underlying network investment has been made.
Revenue by segment
Monthly wireless and home internet subscriptions billed to individual and business customers who pass a credit check — T-Mobile's core, most profitable customer base.
Sales and instalment financing of phones, tablets and other devices to customers, typically bundled with a new or renewed plan.
Wireless plans paid in advance, generally for more price-sensitive customers, including the Metro by T-Mobile brand.
Network capacity resold to other carriers and mobile virtual network operators, plus other smaller service revenue lines.
Competitive moat
Switching costs · NarrowSwitching carriers means porting a phone number, possibly buying a new device, and hoping coverage holds up in a new network, friction that keeps churn low across the industry. The advantage is narrow, though: switching is still far easier than changing, say, enterprise software, and all three national carriers run aggressive promotions that regularly lure customers to switch anyway.
What drives demand
DefensiveMost households now treat mobile and home internet service as an essential, utility-like expense, so subscriber demand holds up well even in a weaker economy. The equipment line is more discretionary, though: customers can delay upgrading to a new phone when money is tight, so device sales are more sensitive to consumer confidence than the core subscription business.
Key risks
- Intense price competition — Verizon and AT&T compete aggressively on price and promotions to win or defend subscribers, an ongoing pressure that can compress margins across the whole industry.
- Heavy, continuous network investment — Maintaining and upgrading a nationwide 5G network requires sustained, large capital spending; falling behind on network quality would directly threaten the subscriber gains built up since the Sprint merger.
- Cybersecurity and data breach risk — The wireless industry, including T-Mobile, has suffered major customer data breaches in recent years; a future incident could bring regulatory penalties, lawsuits and customer attrition.
- Regulatory oversight of spectrum and mergers — Wireless spectrum licenses, network access rules and merger approvals are all subject to government oversight that can constrain how the company expands its network and business.
- Dependence on securing enough spectrum — Growing data usage per subscriber requires an ongoing supply of wireless spectrum; failing to secure enough in future auctions could limit network capacity relative to competitors.
The case for
Buyers argue that T-Mobile's network-quality lead since the Sprint merger, combined with a growing home-internet business and expansion into business customers, lets it keep taking profitable subscribers from Verizon and AT&T for years to come.
The case against
Sellers fear that ongoing promotional price wars across all three national carriers, the heavy and continuous capital spending network leadership requires, and the industry's repeated exposure to data breaches limit how much of that subscriber growth turns into durable free cash flow.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$92.19B
Trailing 12 months (through 6/30/2026)
Net Income
$10.56B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$18.00B
Total Equity
$59.20B
Total Liabilities
$160.03B
Current Ratio
0.92
Interest Coverage
-
Debt/EBITDA
1.18
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$442.23
Current Price
$181.84
Margin of Safety
+58.9%
Fair Value Range
$287.45 - $597.01
Estimation Methods
Valuation Metrics
P/E Ratio
19.10
ROE
18.6%
P/B Ratio
3.48
P/FCF
10.65
Gross Margin
-
ROIC
7.6%
Profitability Radar
Value Creation (Economic Moat)
ROIC
7.6%
WACC
6.7%
ROIC − WACC
+0.9 pp
ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.
Fundamental Analysis Criteria
Passed (20)
- EPS shows upward trend
- EPS CAGR 20.30%
- Price CAGR 12.28%
- ROIC 7.6%
- P/FCF 10.65
- Debt/Equity ratio
- Operating Margin 19.8%
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 18.2%
- Revenue Growth 5Y 5.2%
- Analyst Consensus 84% Buy
- Earnings Surprise avg 5.0%
- PEG Ratio 0.62
- Earnings Quality (OCF/NI) 2.73
- Share Dilution -3.7%
- Piotroski F-Score 6/9
Failed (5)
- P/B Ratio 3.48
- CapEx intensity
- Price below Graham Number
- DCF valuation (Overvalued)
- Net Margin Trend 11.5% vs 14.5%
Unavailable (3)
- Gross Margin NaN%
- Dividend Payout NaN%
- Interest Coverage
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Srinivasan Gopalan | CEO, President & Director | 55 |
| Mr. Peter Osvaldik | Executive VP & CFO | 48 |
| Mr. Jonathan A. Freier | Chief Operating Officer | 49 |
| Mr. Mark W. Nelson Esq., J.D. | Chief Legal Officer & General Counsel | 57 |
| Mr. Michael J. Katz | Strategic Advisor | 46 |
| Mr. André Almeida | Chief Marketing, Brand & Broadband Officer | 48 |
| Mr. Daniel J. Drobac | VP & Chief Accounting Officer | 49 |
| Dr. John C. B. Saw Ph.D. | President of Technology & CTO | 63 |
| Mr. Jeff Simon | Executive VP & Chief Information Officer | - |
| Ms. Quan Yao C.F.A. | Senior Vice President of Investor Relations | - |
Audit Risk
9
Board Risk
10
Compensation Risk
10
Shareholder Rights Risk
10
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for TMUS, sourced from Markets Gazette.
- 7/23/2026NEGATIVET-Mobile’s stock sinks despite customers pouring into premium plans
T-Mobile US, Inc. experienced a significant stock price decline despite reporting strong customer uptake of its premium plans. The company's strategic shift towards acquiring 'higher quality accounts' following the introduction of new plans last year appears to be met with investor skepticism. While customer growth in premium segments is a positive operational indicator, the market's reaction suggests concerns about profitability, future revenue streams, or competitive pressures that outweigh the subscriber gains. Investors will be closely watching for further clarification on the financial implications of this strategy.
- 7/23/2026POSITIVET-Mobile earnings rise as customers pour into premium plans
T-Mobile US reported an increase in earnings, driven by a strong uptake of its premium customer plans. The company's strategic shift towards 'higher quality accounts' following the introduction of new plans last year appears to be paying off, indicating successful customer acquisition and retention in higher-value segments. This focus on premium offerings suggests improved revenue per user and potentially higher profitability, which is a positive signal for investors.
- 5/15/2026POSITIVEIf You Invested $1000 In T-Mobile US Stock 10 Years Ago, You Would Have This Much Today
An investment of $1000 in T-Mobile US stock a decade ago would have yielded a substantial return, illustrating the company's significant growth and market performance. While specific figures are not provided in the prompt, the article's premise suggests a strong positive trajectory for TMUS shareholders over the past ten years. This historical performance indicates effective business strategy, successful integration of acquisitions like Sprint, and a competitive edge in the telecommunications sector, potentially signaling continued investor confidence.
- 3/19/2026NEGATIVET-Mobile, Verizon, AT&T Go All-In On Discounts As Churn Surge Hits
T-Mobile, Verizon, and AT&T are engaging in aggressive price wars, offering substantial discounts to combat a surge in customer churn. This intensified competition in 2026 indicates a challenging market environment where customer acquisition and retention costs are rising significantly. Investors should monitor the impact on profit margins for these major US carriers, as the sustained discount strategy could pressure profitability despite efforts to maintain subscriber numbers. The focus shifts from premium service to price competitiveness, potentially altering market dynamics.
- 2/24/2026NEUTRALT-Mobile hopes free offer will restore customer loyalty
T-Mobile has rolled out a free offer in an attempt to win back customer loyalty, following recent losses in its user base. This strategic move aims to reverse a negative churn trend but entails significant costs that could impact short-term margins. Investors will need to carefully assess whether this investment in retention will lead to a sustainable recovery in the customer base and future revenues, or if it represents a defensive measure with uncertain long-term outcomes.
via Markets Gazette