T-Mobile US, Inc. (TMUS) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Communication Services · Telecom Services
Is T-Mobile US, Inc. a safe investment right now?
T-Mobile US, Inc.'s Altman Z-Score of 1.6 places it in the distress zone. Our fair value estimate is $164.84 (Fairly Valued). Moat rating: 3.3/5 stars.
Could T-Mobile US, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 1.6 falls below the 1.8 distress threshold, indicating significant financial stress.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives TMUS's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.0002 | 1.2 | -0.0 |
| B · Retained Earnings / Total Assets | RE / TA | 0.0964 | 1.4 | 0.13 |
| C · EBIT / Total Assets | EBIT / TA | 0.0824 | 3.3 | 0.27 |
| D · Market Cap / Total Liabilities | MCap / TL | 1.3204 | 0.6 | 0.79 |
| E · Revenue / Total Assets | Rev / TA | 0.4028 | 1.0 | 0.4 |
How has TMUS's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 1.34 | Distress |
| 2023 | 1.53 | Distress |
| 2024 | 1.63 | Distress |
| 2025 | 1.6 | Distress |
Source: Calculated from TMUS's latest 10-K filing on SEC EDGAR.
What is T-Mobile US, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $9.99 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $9.72 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $10.39 | 26 analysts consensus |
| Trailing P/E | 19.4x | Current market pricing |
| Fair P/E (β discount) | 16.5x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Growing | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $268.35 (26 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does T-Mobile US, Inc. have a durable competitive advantage?
Moat rating: 3.3/5.
What makes up TMUS's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 3/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is TMUS's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 4.6% | — |
| 2023 | 10.3% | Rising |
| 2024 | 12.9% | Rising |
| 2025 | 12.4% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is T-Mobile US, Inc.'s dividend safe?
Can T-Mobile US, Inc. afford its dividend?
Payout ratio is 37.6%. FCF covers the dividend 0.0x. 5 consecutive years of payments.
T-Mobile US, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $88.3B | $81.4B | $79.6B | Rising |
| Net Income | $11.0B | $11.3B | $2.6B | Rising |
| Free Cash Flow | $15.4B | $10.0B | −$0.5B | Rising |
| Gross Margin | 62.9% | 63.6% | 54.5% | Rising |
Recent events that affect our TMUS analysis
TMUS earnings report scheduled
Upcoming report. Consensus EPS estimate: $2.11. Revenue estimate: $23.02B. Our current Fair Value: $164.84 — a significant beat or miss could shift this estimate.
TMUS analyst consensus: 83% bullish (24 of 29 analysts)
10 Strong Buy, 14 Buy, 5 Hold, 0 Sell, 0 Strong Sell. Consensus target: $268.35 (42.0% upside). Compare with our independent Fair Value: $164.84.
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS paid $1.0200/share dividend
Dividend Safety Grade: C. Payout ratio: 37.6%.
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS missed EPS estimates by 8.9%
Reported EPS: $1.88 vs estimate $2.06. Our Fair Value of $164.84 may face downward pressure if the trend continues.
TMUS filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS paid $1.0200/share dividend
Dividend Safety Grade: C. Payout ratio: 37.6%.
TMUS beat EPS estimates by 0.4%
Reported EPS: $2.41 vs estimate $2.40. Earnings strength supports our Fair Value of $164.84 (12.7% below current price).
TMUS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS paid $0.8800/share dividend
Dividend Safety Grade: C. Payout ratio: 37.6%.
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS beat EPS estimates by 6.3%
Reported EPS: $2.84 vs estimate $2.67. Earnings strength supports our Fair Value of $164.84 (12.7% below current price).
TMUS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS paid $0.8800/share dividend
Dividend Safety Grade: C. Payout ratio: 37.6%.
TMUS beat EPS estimates by 6.6%
Reported EPS: $2.64 vs estimate $2.48. Earnings strength supports our Fair Value of $164.84 (12.7% below current price).
TMUS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS paid $0.8800/share dividend
Dividend Safety Grade: C. Payout ratio: 37.6%.
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
TMUS beat EPS estimates by 12.6%
Reported EPS: $2.57 vs estimate $2.28. Earnings strength supports our Fair Value of $164.84 (12.7% below current price).
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TMUS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about T-Mobile US, Inc.
What is T-Mobile US, Inc. stock price today?
T-Mobile US, Inc. (TMUS) stock price is $188.92 as of the latest market close, traded on the NASDAQ exchange.
What does T-Mobile US, Inc. 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. It offers voice, messaging, and data services to postpaid, prepaid, and wholesale and other services customers. It also provides wireless devices, including smartphones, wearables, tablets, home broadband gateways, headsets, and other mobile communication devices, as well as accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts.
What is T-Mobile US, Inc. market cap?
T-Mobile US, Inc. has a market capitalization of $211.31B, classifying it as a mega-cap stock in the Communication Services sector.
What sector and industry is TMUS in?
T-Mobile US, Inc. operates in the Communication Services sector, specifically within the Telecom Services industry. It trades on the NASDAQ under the ticker symbol TMUS.
Is TMUS stock overvalued or undervalued?
Based on our valuation model, T-Mobile US, Inc. trades 14.6% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $164.84
- Current Price: $188.92
- Valuation Zone: Fairly Valued
What is TMUS stock forecast and analyst target price?
Based on 26 Wall Street analysts, the consensus price target for T-Mobile US, Inc. is $268.35, implying upside of 42.0% from the current price.
- Analyst High Target: $310.00
- Analyst Low Target: $225.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is T-Mobile US, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for T-Mobile US, Inc.:
- Revenue growth (current year est.): 7.1%
- EPS growth (current year est.): 6.9%
- Revenue growth (next year est.): 4.5%
- EPS growth (next year est.): 28.7%
What are T-Mobile US, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $88.3B | Rising |
| Net Income | $11.0B | Rising |
| Free Cash Flow | $15.4B | Rising |
| Gross Margin | 62.9% | Rising |
What is TMUS's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 19.4x
- Forward P/E (next 12 months est.): 13.5x
- FairValueLabs Fair P/E: 16.5x
How volatile is TMUS stock?
T-Mobile US, Inc. has a beta of 0.42, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does T-Mobile US, Inc. have?
T-Mobile US, Inc.'s balance sheet shows:
- Total Cash: $5.60B
- Total Debt: $123.65B
- Net Cash Position: $-118.05B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is T-Mobile US, Inc.'s free cash flow?
T-Mobile US, Inc. generated $8.00B in trailing twelve-month free cash flow (from $27.95B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does T-Mobile US, Inc. pay a dividend, and is it safe?
Yes, T-Mobile US, Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.9%
- Payout Ratio: 37.6%
- Consecutive Years Paid: 5
- 5-Year Dividend Growth: 0.0%
- FairValueLabs Safety Grade: C
Is T-Mobile US, Inc. at risk of going bankrupt?
T-Mobile US, Inc.'s Altman Z-Score is 1.60, placing it in the distress zone (below 1.8) — elevated bankruptcy risk. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does T-Mobile US, Inc. have a durable competitive advantage?
T-Mobile US, Inc. scores 3.3/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 3/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is TMUS's return on equity (ROE)?
T-Mobile US, Inc.'s return on equity is 18.2%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy TMUS stock?
TMUS shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol TMUS
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is TMUS a value stock or speculative?
FairValueLabs classifies T-Mobile US, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of T-Mobile US, Inc.?
The current CEO of T-Mobile US, Inc. is Mr. Srinivasan Gopalan.
What is TMUS's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $9.73
- Forward EPS (next 12 months est.): $14.00
- Analyst consensus EPS (this year): $10.39
- Analyst consensus EPS (next year): $13.37
Other Communication Services companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
TMUS analysis methodology: How we calculate fair value, Z-Scores, and moat ratings