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: 2025-12-31), 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).
The financial performance indicators demonstrate a consistent upward trend in profitability metrics from 2021 through 2025. Specifically, net income, earnings before tax, earnings before interest and tax, and earnings before interest, tax, depreciation, and amortization all exhibit growth over the five-year period, although with some variation in the rate of increase.
- Overall Profitability Trend
- A general pattern of increasing profitability is evident. While net income experienced a decrease from 2021 to 2022, it rebounded significantly in 2023 and continued to grow through 2024 before stabilizing in 2025. This suggests potential operational improvements or favorable market conditions impacting bottom-line performance.
- EBITDA Performance
- Earnings before interest, tax, depreciation, and amortization began at US$23,076 million in 2021. A decrease was observed in 2022, reaching US$20,161 million. However, EBITDA then increased substantially to US$27,152 million in 2023, continuing its upward trajectory to US$31,042 million in 2024. The rate of growth slowed slightly in 2025, with EBITDA reaching US$31,563 million. This indicates a strengthening operational performance and ability to generate cash flow before considering capital expenditures and financing costs.
- Relationship between EBIT and EBITDA
- The difference between earnings before interest and tax (EBIT) and earnings before interest, tax, depreciation, and amortization (EBITDA) remains relatively consistent across the observed period. This suggests a stable depreciation and amortization expense as a percentage of EBIT. EBIT mirrored the EBITDA trend, decreasing in 2022, then increasing significantly in subsequent years.
- EBT and Net Income Correlation
- Earnings before tax (EBT) and net income demonstrate a strong positive correlation. The fluctuations in EBT are directly reflected in net income, indicating that tax rates remained relatively stable throughout the period. The substantial increase in both metrics from 2022 to 2023 suggests a significant improvement in pre-tax profitability that translated directly to higher net earnings.
In summary, the examined financial indicators point to a period of increasing profitability, with a notable recovery and growth phase beginning in 2023. The consistent relationship between the various earnings metrics suggests a stable underlying business model and efficient management of expenses.
Enterprise Value to EBITDA Ratio, Current
T-Mobile US Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 320,361) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 31,563) |
| Valuation Ratio | |
| EV/EBITDA | 10.15 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AT&T Inc. | 6.03 |
| Verizon Communications Inc. | 7.30 |
| EV/EBITDA, Sector | |
| Telecommunication Services | 8.09 |
| EV/EBITDA, Industry | |
| Communication Services | 16.78 |
Based on: 10-K (reporting date: 2025-12-31).
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, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 313,838) | 341,174) | 264,390) | 249,831) | 225,649) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 31,563) | 31,042) | 27,152) | 20,161) | 23,076) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 9.94 | 10.99 | 9.74 | 12.39 | 9.78 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AT&T Inc. | 5.92 | 7.18 | 5.84 | 13.24 | 5.09 | |
| Verizon Communications Inc. | 7.27 | 6.56 | 7.90 | 6.48 | 7.60 | |
| EV/EBITDA, Sector | ||||||
| Telecommunication Services | — | 7.90 | 7.51 | 9.38 | 6.75 | |
| EV/EBITDA, Industry | ||||||
| Communication Services | — | 13.81 | 13.01 | 11.85 | 11.67 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 313,838 ÷ 31,563 = 9.94
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited fluctuations over the five-year period. Initial values indicated a relatively high multiple, followed by a period of decline and subsequent increase, concluding with a stabilization near the initial level.
- Enterprise Value
- Enterprise Value generally increased from 2021 to 2023, reaching 264,390 US$ in millions. A significant jump occurred between 2023 and 2024, with the value reaching 341,174 US$ in millions. However, a decrease was observed in 2025, settling at 313,838 US$ in millions.
- EBITDA
- EBITDA decreased from 23,076 US$ in millions in 2021 to 20,161 US$ in millions in 2022. A substantial recovery was then noted, with EBITDA rising to 27,152 US$ in millions in 2023. Continued growth was observed in 2024 and 2025, reaching 31,042 US$ in millions and 31,563 US$ in millions respectively, indicating a consistent upward trend in operational profitability during those years.
- EV/EBITDA Ratio
- The EV/EBITDA ratio began at 9.78 in 2021, increasing to a peak of 12.39 in 2022. It then decreased to 9.74 in 2023, reflecting the increase in EBITDA and relative stabilization of Enterprise Value. The ratio experienced a slight increase to 10.99 in 2024, before settling at 9.94 in 2025. The ratio’s movement suggests a dynamic relationship between the company’s valuation and its operational earnings, with the 2022 peak potentially indicating overvaluation relative to earnings at that time.
The observed trends suggest that while Enterprise Value has shown overall growth, the fluctuations in EBITDA have significantly impacted the EV/EBITDA ratio. The stabilization of the ratio in the final year may indicate a more balanced valuation relative to earnings.