Stock Analysis on Net

T-Mobile US Inc. (NASDAQ:TMUS)

Common Stock Valuation Ratios (Price Multiples) 

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Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Current Valuation Ratios

T-Mobile US Inc., current price multiples

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T-Mobile US Inc. AT&T Inc. Verizon Communications Inc. Telecommunication Services Communication Services
Selected Financial Data
Current share price (P) $163.37
No. shares of common stock outstanding 1,186,867,575
Growth rate (g) 7.18%
 
Earnings per share (EPS) $7.01
Next year expected EPS $7.51
Operating profit per share $12.02
Sales per share $66.19
Book value per share (BVPS) $54.53
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 23.31 8.56 14.55 14.19 23.85
Price to next year expected earnings 21.75 8.48 13.21 14.11 21.21
Price-earnings-growth (PEG) 3.25 9.35 1.43 22.61 1.91
Price to operating profit (P/OP) 13.59 5.18 7.39 7.99 17.40
Price to sales (P/S) 2.47 0.99 1.26 1.45 3.87
Price to book value (P/BV) 3.00 1.18 1.83 1.86 4.58

Based on: 10-K (reporting date: 2023-12-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

T-Mobile US Inc., historical price multiples

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 23.09 69.44 51.43 48.36 20.45
Price to operating profit (P/OP) 13.46 27.49 22.56 22.33 12.40
Price to sales (P/S) 2.44 2.26 1.94 2.17 1.58
Price to book value (P/BV) 2.97 2.58 2.25 2.27 2.46

Based on: 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), 10-K (reporting date: 2019-12-31).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. T-Mobile US Inc. P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. T-Mobile US Inc. P/OP ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. T-Mobile US Inc. P/S ratio increased from 2021 to 2022 and from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. T-Mobile US Inc. P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

T-Mobile US Inc., historical P/E calculation, comparison to benchmarks

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,186,867,575 1,219,383,110 1,249,289,954 1,242,804,085 856,932,845
Selected Financial Data (US$)
Net income (in millions) 8,317 2,590 3,024 3,064 3,468
Earnings per share (EPS)2 7.01 2.12 2.42 2.47 4.05
Share price1, 3 161.78 147.49 124.48 119.22 82.77
Valuation Ratio
P/E ratio4 23.09 69.44 51.43 48.36 20.45
Benchmarks
P/E Ratio, Competitors5
AT&T Inc. 8.47 8.60 19.92
Verizon Communications Inc. 14.38 7.91 10.14 13.13 12.49
P/E Ratio, Sector
Telecommunication Services 14.04 32.09 12.24 37.83 16.07
P/E Ratio, Industry
Communication Services 23.49 24.80 21.10 36.51 24.81

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 8,317,000,000 ÷ 1,186,867,575 = 7.01

3 Closing price as at the filing date of T-Mobile US Inc. Annual Report.

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 161.78 ÷ 7.01 = 23.09

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. T-Mobile US Inc. P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Operating Profit (P/OP)

T-Mobile US Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,186,867,575 1,219,383,110 1,249,289,954 1,242,804,085 856,932,845
Selected Financial Data (US$)
Operating income (in millions) 14,266 6,543 6,892 6,636 5,722
Operating profit per share2 12.02 5.37 5.52 5.34 6.68
Share price1, 3 161.78 147.49 124.48 119.22 82.77
Valuation Ratio
P/OP ratio4 13.46 27.49 22.56 22.33 12.40
Benchmarks
P/OP Ratio, Competitors5
AT&T Inc. 5.12 7.32 31.88 9.91
Verizon Communications Inc. 7.30 5.52 6.90 8.12 7.92
P/OP Ratio, Sector
Telecommunication Services 7.91 14.96 8.78 14.01 9.19
P/OP Ratio, Industry
Communication Services 17.13 16.55 17.18 24.94 17.80

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 14,266,000,000 ÷ 1,186,867,575 = 12.02

3 Closing price as at the filing date of T-Mobile US Inc. Annual Report.

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 161.78 ÷ 12.02 = 13.46

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. T-Mobile US Inc. P/OP ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Sales (P/S)

T-Mobile US Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,186,867,575 1,219,383,110 1,249,289,954 1,242,804,085 856,932,845
Selected Financial Data (US$)
Revenues (in millions) 78,558 79,571 80,118 68,397 44,998
Sales per share2 66.19 65.26 64.13 55.03 52.51
Share price1, 3 161.78 147.49 124.48 119.22 82.77
Valuation Ratio
P/S ratio4 2.44 2.26 1.94 2.17 1.58
Benchmarks
P/S Ratio, Competitors5
AT&T Inc. 0.98 1.14 1.01 1.19 1.53
Verizon Communications Inc. 1.25 1.23 1.68 1.82 1.83
P/S Ratio, Sector
Telecommunication Services 1.43 1.44 1.44 1.59 1.64
P/S Ratio, Industry
Communication Services 3.81 2.81 3.84 4.09 3.48

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 78,558,000,000 ÷ 1,186,867,575 = 66.19

3 Closing price as at the filing date of T-Mobile US Inc. Annual Report.

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 161.78 ÷ 66.19 = 2.44

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. T-Mobile US Inc. P/S ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

T-Mobile US Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,186,867,575 1,219,383,110 1,249,289,954 1,242,804,085 856,932,845
Selected Financial Data (US$)
Stockholders’ equity (in millions) 64,715 69,656 69,102 65,344 28,789
Book value per share (BVPS)2 54.53 57.12 55.31 52.58 33.60
Share price1, 3 161.78 147.49 124.48 119.22 82.77
Valuation Ratio
P/BV ratio4 2.97 2.58 2.25 2.27 2.46
Benchmarks
P/BV Ratio, Competitors5
AT&T Inc. 1.16 1.41 1.03 1.26 1.50
Verizon Communications Inc. 1.81 1.84 2.74 3.45 3.92
P/BV Ratio, Sector
Telecommunication Services 1.84 1.88 1.73 1.99 2.14
P/BV Ratio, Industry
Communication Services 4.51 3.41 4.33 4.21 3.69

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 64,715,000,000 ÷ 1,186,867,575 = 54.53

3 Closing price as at the filing date of T-Mobile US Inc. Annual Report.

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 161.78 ÷ 54.53 = 2.97

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. T-Mobile US Inc. P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.