Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
T-Mobile US Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Income
- The net income exhibited a declining trend from 2020 to 2022, decreasing from 3,064 million USD in 2020 to 2,590 million USD in 2022. However, there was a significant recovery and growth in the following years, with net income rising sharply to 8,317 million USD in 2023 and further to 11,339 million USD in 2024. This reflects a considerable improvement in profitability in the latter periods.
- Earnings Before Tax (EBT)
- EBT followed a similar pattern to net income, decreasing modestly between 2020 and 2022, from 3,530 million USD to 3,146 million USD. Subsequently, a strong upward trajectory is observed, with EBT increasing substantially to 10,999 million USD in 2023 and 14,712 million USD in 2024, signaling enhanced operational performance before tax obligations.
- Earnings Before Interest and Tax (EBIT)
- EBIT showed moderate volatility in the initial years, increasing from 6,231 million USD in 2020 to 6,693 million USD in 2021, then slightly declining to 6,510 million USD in 2022. From 2023 onwards, EBIT surged significantly, reaching 14,334 million USD and 18,123 million USD in 2023 and 2024 respectively. This indicates substantial growth in core operating earnings excluding interest and tax impacts.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA demonstrated a fluctuating trend in the earlier years: rising from 20,382 million USD in 2020 to 23,076 million USD in 2021, but then declining to 20,161 million USD in 2022. The subsequent years show a marked improvement, with EBITDA increasing to 27,152 million USD in 2023 and reaching 31,042 million USD in 2024. This pattern highlights enhanced operational earnings capacity and cash flow potential in recent periods.
Enterprise Value to EBITDA Ratio, Current
T-Mobile US Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 334,234) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 31,042) |
| Valuation Ratio | |
| EV/EBITDA | 10.77 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AT&T Inc. | 7.56 |
| Verizon Communications Inc. | 6.70 |
| EV/EBITDA, Sector | |
| Telecommunication Services | 8.04 |
| EV/EBITDA, Industry | |
| Communication Services | 14.05 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
T-Mobile US Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 341,174) | 264,390) | 249,831) | 225,649) | 211,414) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 31,042) | 27,152) | 20,161) | 23,076) | 20,382) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 10.99 | 9.74 | 12.39 | 9.78 | 10.37 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AT&T Inc. | 7.18 | 5.84 | 13.24 | 5.09 | 8.75 | |
| Verizon Communications Inc. | 6.56 | 7.90 | 6.48 | 7.60 | 7.61 | |
| EV/EBITDA, Sector | ||||||
| Telecommunication Services | 7.90 | 7.51 | 9.38 | 6.75 | 8.58 | |
| EV/EBITDA, Industry | ||||||
| Communication Services | 13.87 | 12.96 | 11.75 | 11.59 | 14.52 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 341,174 ÷ 31,042 = 10.99
4 Click competitor name to see calculations.
- Enterprise Value
- The enterprise value demonstrates a consistent upward trend over the five-year period. Starting at $211.4 billion in 2020, it increased each year, reaching $341.2 billion by the end of 2024. This growth indicates an expanding valuation of the company in the market, reflecting investor confidence or underlying business expansion.
- EBITDA
- EBITDA figures show variability but generally indicate growth. After an initial increase from $20.4 billion in 2020 to $23.1 billion in 2021, there was a decline to $20.2 billion in 2022. Subsequently, EBITDA rebounded significantly, rising to $27.2 billion in 2023 and further to $31.0 billion in 2024. This pattern suggests some operational challenges or investments in 2022, followed by improved earnings capacity in the latter years.
- EV/EBITDA Ratio
- The EV/EBITDA ratio fluctuates across the period, beginning at 10.37 in 2020 and slightly decreasing to 9.78 in 2021. It peaks at 12.39 in 2022, corresponding to the drop in EBITDA, which elevates the multiple. The ratio then decreases again to 9.74 in 2023, reflecting the EBITDA recovery, before rising to 10.99 in 2024. The variability in this ratio suggests a changing market valuation relative to operational earnings, with potential shifts in investor perception or market conditions impacting the company's valuation multiples.