Enterprise Value to FCFF (EV/FCFF)
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2013
- Return on Assets (ROA) since 2013
- Debt to Equity since 2013
- Price to Earnings (P/E) since 2013
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Free Cash Flow to The Firm (FCFF)
T-Mobile US Inc., FCFF 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).
1, 2 See details »
The financial information reveals a significant shift in free cash flow to the firm (FCFF) over the five-year period. Initially, a negative FCFF is observed, followed by a period of substantial improvement and consistent growth.
- Net Cash from Operations
- Net cash provided by operating activities demonstrates a consistent upward trend throughout the period. Starting at US$13,917 million in 2021, it increases to US$27,950 million in 2025. This indicates improving operational efficiency and profitability.
- Free Cash Flow to the Firm (FCFF)
- In 2021, FCFF is reported as negative US$5,488 million. A substantial turnaround is evident in 2022, with FCFF becoming positive at US$1,142 million. This positive trend continues, with FCFF increasing to US$9,436 million in 2023, US$11,725 million in 2024, and reaching US$19,385 million in 2025. The magnitude of the increase in FCFF accelerates over time, suggesting strengthening financial health and increased capacity for investment or shareholder returns.
The divergence between the consistently increasing net cash from operations and the initial negative, then rapidly improving, FCFF suggests a change in capital expenditure or other non-operating cash flow items. The substantial growth in FCFF from 2022 onwards indicates a successful transition to positive free cash flow generation and a strengthening financial position.
The observed trends suggest the entity is becoming increasingly capable of funding its operations, investments, and potentially returning value to stakeholders through dividends or share repurchases.
Interest Paid, Net of Tax
T-Mobile US Inc., interest paid, net of tax calculation
US$ 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).
2 2025 Calculation
Interest payments, net of amounts capitalized, tax = Interest payments, net of amounts capitalized × EITR
= × =
3 2025 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= × =
The analysis reveals a fluctuating pattern in interest expense, net of tax, alongside a notable increase in the effective income tax rate over the observed period. Capitalized interest remains relatively stable, though with some variation.
- Effective Income Tax Rate (EITR)
- The effective income tax rate demonstrates a significant upward trend from 9.80% in 2021 to 24.40% in 2023. A slight decrease to 22.90% is observed in 2024, followed by a further increase to 23.00% in 2025. This suggests a changing tax landscape or alterations in the composition of taxable income.
- Interest Payments, Net of Tax
- Interest payments, net of tax, decreased from US$3,358 million in 2021 to US$2,681 million in 2023, representing a decline of approximately 20%. However, the trend reverses in subsequent years, with payments increasing to US$2,840 million in 2024 and US$2,989 million in 2025. This suggests potential changes in debt levels or interest rates, followed by a stabilization and slight increase.
- Capitalized Interest, Net of Tax
- Capitalized interest, net of tax, began at US$189 million in 2021, decreased substantially to US$50 million in 2022, and then rose to US$79 million in 2023. It subsequently declined to US$26 million in 2024 before increasing again to US$33 million in 2025. This fluctuation likely corresponds to changes in qualifying asset construction activity.
The interplay between the increasing effective income tax rate and the fluctuating net interest expense suggests a complex financial dynamic. While net interest expense initially decreased, it has begun to rise again, coinciding with a higher tax burden. The relatively small magnitude of capitalized interest compared to total net interest expense indicates that a majority of interest costs are being expensed rather than added to asset values.
Enterprise Value to FCFF Ratio, Current
T-Mobile US Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| AT&T Inc. | |
| Verizon Communications Inc. | |
| EV/FCFF, Sector | |
| Telecommunication Services | |
| EV/FCFF, Industry | |
| Communication Services | |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
T-Mobile US Inc., historical EV/FCFF 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 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Telecommunication Services | ||||||
| EV/FCFF, Industry | ||||||
| Communication Services | ||||||
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/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) ratio exhibits significant fluctuation over the observed period. Initially, the ratio is unavailable for 2021. However, a substantial decrease is evident from 2022 to 2023, followed by relative stability, and then a further decline through 2025.
- EV/FCFF Trend
- In 2022, the EV/FCFF ratio stood at 218.70. This represents a very high valuation relative to the firm’s free cash flow. A dramatic reduction occurred in 2023, with the ratio falling to 28.02. This suggests a considerable improvement in the relationship between enterprise value and cash flow generation. The ratio remained relatively stable in 2024 at 29.10, indicating a consistent valuation. Finally, a further decrease to 16.19 is observed in 2025, signifying an even more favorable valuation based on free cash flow.
The underlying Free Cash Flow to the Firm (FCFF) values support the observed trends in the EV/FCFF ratio. FCFF transitioned from negative values in 2021 to positive and increasing values throughout the period, culminating in 19,385 US$ millions in 2025. This growth in FCFF is a primary driver of the declining EV/FCFF ratio.
- Enterprise Value
- Enterprise Value increased from 225,649 US$ millions in 2021 to 264,390 US$ millions in 2023. A significant jump to 341,174 US$ millions occurred in 2024, before decreasing to 313,838 US$ millions in 2025. While EV generally increased, the rate of increase in FCFF outpaced the growth in EV from 2023 onwards, contributing to the decreasing EV/FCFF ratio.
The decreasing EV/FCFF ratio suggests that the company’s enterprise value is becoming more aligned with its ability to generate free cash flow. The substantial shift from 2022 to 2023 is particularly noteworthy, indicating a potentially significant re-evaluation of the company’s valuation by the market or an improvement in its operational efficiency and cash generation capabilities.