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TMUS · Intrinsic value

Is T-Mobile US, Inc. (TMUS) overvalued or undervalued?

T-Mobile US, Inc. (TMUS) trades at the delayed market price of $159.10 a share. That price already implies revenue growth of 0.6% a year for 5 years. TickerWorth's fair value is $174.63 a share (priced within our range of $106.38 – $245.01). We do not call it over- or undervalued from inside our range.

Model by · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made

Is TMUS fairly valued?

Fair value
$174.63
Market price
$159.10
Upside to fair value
+9.8%
Verdict
Priced within our range of $106.38 – $245.01
Price as of · Prices are delayed.
Fair value against the delayed market price: Priced within our range of $106.38 – $245.01.

Reverse DCF: Today's price implies revenue growth of 0.6% a year for 5 years; our model assumes 6.6% a year on average over the same horizon.

What is TMUS's TickerWorth Score?

C48/100

Middle of the pack — real strengths and real weaknesses

Compared with Communication Services companies in US

Its strongest point: a profitable, high-quality business. Its weakest: balance sheet looks stretched.

  • Value · 53 of 100

    Cheaper than 53% of Communication Services companies in US

  • Price vs worth · 58 of 100
  • Quality · 67 of 100

    More profitable than 67% of Communication Services companies in US

  • Financial health · 19 of 100

    Financially stronger than 19% of Communication Services companies in US

  • Growth · 50 of 100

    Growing faster than 50% of Communication Services companies in US

  • Momentum · 20 of 100

    Outperformed 20% of Communication Services companies in US over the past year

Confidence: High confidence · Scored

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TMUS DCF valuation, input by input

TickerWorth's fair value for T-Mobile US, Inc. (TMUS) is $174.63 a share, against the delayed market price of $159.10 (priced within our range of $106.38 – $245.01). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.

Read the full reasoning

One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values TMUS at about $245.01 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.

The valuation discounts T-Mobile US, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 6.6%, with a long-run terminal growth rate of 2.5%. About 81% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 0.6% annual revenue growth for TMUS. Our base case instead compounds to about 6.6% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, TMUS's modeled DCF value ranges from about $132.82 to $708.45 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what T-Mobile US, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of TMUS's intrinsic value. Figures update as new filings and prices come in.

Every input behind TMUS's DCF

InputValue
Base-year revenueT-MOBILE US, INC. FY2025 10-K (accession 0001283699-26-000010): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year.$88,309,000,000
Base EBIT marginT-MOBILE US, INC. FY2025 10-K (accession 0001283699-26-000010): us-gaap:OperatingIncomeLoss 18,279,000,000 / revenue 88,309,000,000 = 20.70%, FY2025.20.7%
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast9% → 8% → 7% → 5% → 4%
Risk-free rateLive feed — US 10-year Treasury yield (^TNX)5.3%
BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5)0.40
Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC2.5%
Diluted sharesT-MOBILE US, INC. FY2025 10-K (accession 0001283699-26-000010): WeightedAverageNumberOfDilutedSharesOutstanding = 1,131,076,251 shares, FY2025.1,131M
Market priceDelayed quote · as of 2026-10-19 15:21 UTC$159.10

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What does T-Mobile US, Inc. do?

What does it do?

T-Mobile US, Inc., together with its subsidiaries, provides wireless communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to postpaid, prepaid, and wholesale and other services customers. It operates in the Telecom Services industry (Communication Services sector), headquartered in United States. The company employs roughly 75,000 people.

How does it make money?

The business turns $92.2B in annual revenue into profit. Out of every $100 of sales, about $25 is left as operating profit (operating margin of 25.2%), after a 63% gross margin on the products/services it sells. After all costs, taxes and interest, 11.5% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks stretched: carries heavy debt (2.1× equity), may struggle to cover its short-term bills (0.9× current ratio), and is currently profitable.

Who at TMUS filed insider trades?

Recent insider filings for T-Mobile US, Inc.
DateInsiderRelationshipWhat happenedValueFiling
Drobac Daniel JamesVP & Chief Accounting OfficerGrant / award—Form 4 for Drobac Daniel James (opens sec.gov in a new tab)
Nelson Mark WolfeChief Legal Officer & GCGrant / award$18,338.09Form 4 for Nelson Mark Wolfe (opens sec.gov in a new tab)
Drobac Daniel JamesVP & Chief Accounting OfficerOpen-market sale$137,670.76Form 4 for Drobac Daniel James (opens sec.gov in a new tab)
Drobac Daniel JamesVP & Chief Accounting OfficerGrant / award$315.13Form 4 for Drobac Daniel James (opens sec.gov in a new tab)
Almeida AndreChief Commercial OfficerShares withheld (tax)$96,624.59Form 4 for Almeida Andre (opens sec.gov in a new tab)
Drobac Daniel JamesVP & Chief Accounting OfficerShares withheld (tax)$31,132.49Form 4 for Drobac Daniel James (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

  • What is TMUS's intrinsic value?

    TickerWorth's blended fair value for T-Mobile US, Inc. (TMUS) is $174.63 per share, versus a market price of $159.10 (priced within our range of $106.38 – $245.01).

  • Is TMUS overvalued or undervalued?

    Priced within our range of $106.38 – $245.01 at $159.10. We don't call TMUS overvalued or undervalued from a range. This is an educational estimate, not advice.

  • What discount rate is used for TMUS?

    A WACC of 6.6% and a terminal growth rate of 2.5%.

  • Is T-Mobile US stock undervalued?

    TickerWorth's fair value for T-Mobile US, Inc. (TMUS) is $174.63 against a market price of $159.10. Our read: Priced within our range of $106.38 – $245.01. This is a model estimate, not investment advice.

  • T-Mobile US (TMUS) DCF valuation and fair value

    Our fair value for T-Mobile US, Inc. (TMUS) is $174.63, built on a 6.6% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

  • What growth is priced into T-Mobile US stock?

    Today's price implies revenue growth of 0.6% a year for 5 years; our model assumes 6.6% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $159.10. A model estimate, not investment advice.

  • T-Mobile US (TMUS) insider trading

    The most recent insider filing (SEC Form 4) for T-Mobile US, Inc. (TMUS): Drobac Daniel James, VP & Chief Accounting Officer, grant / award on 2026-09-24. The latest filings are listed on this page. A disclosure, not a signal to trade.

How does TMUS compare with its peers?

Not investment advice. TickerWorth Score is a model output.

Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.