T-Mobile US Inc. (NASDAQ:TMUS)

Price to Earnings (P/E) Ratio

The P/E ratio exhibited considerable volatility throughout the periods analyzed. It began at 52.59 and experienced a downward trend until reaching a low near 43.15. Subsequently, there was a sharp increase peaking above 110 in late 2022, indicating heightened investor expectations or fluctuations in earnings. Following this peak, the ratio generally declined, stabilizing in the low twenties by 2025. This pattern suggests periods of both optimism and adjustment in market valuation relative to earnings.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio showed a similar pattern to the P/E ratio, starting around 22.14, then slightly declining before increasing significantly to over 36 in late 2022. After this peak, the ratio decreased, settling between 12 and 16 in the subsequent years through 2025. This trend indicates fluctuations in the valuation of operating profits, possibly reflecting changes in operational efficiency or profitability expectations.

Price to Sales (P/S) Ratio

The P/S ratio displayed an overall upward trajectory from about 2.08 to a peak of 3.60 in late 2024. After this peak, it experienced a moderate decline but maintained levels above 2.80 through early 2025. The gradual increase implies that the market has been valuing sales growth increasingly favorably, while the later dip might reflect a tempered outlook or adjustments for sales quality or growth sustainability.

Price to Book Value (P/BV) Ratio

The P/BV ratio showed a notable upward trend, rising steadily from approximately 2.41 to a high near 4.87 by late 2024. Subsequently, it slightly decreased but remained elevated above 4.0 into 2025. This consistent increase suggests growing investor confidence in the company's net asset value or book equity, possibly due to asset appreciation or improved balance sheet strength.

Summary of Trends

The financial ratios collectively indicate a period of volatility in valuation multiples around earnings and operating profits, particularly with significant peaks in 2022. The P/S and P/BV ratios showed more steady upward trends, reflecting increased market confidence in revenue generation and asset values over the longer term. The moderation of some ratios in 2025 points to a potential stabilization phase following prior fluctuations.

Share Price

The share price displayed a generally upward trend over the observed periods. Starting at $128.48 in March 2021, it experienced fluctuations but overall increased substantially, reaching a peak of $262.18 in March 2025. Notably, after a period of relative stability and moderate growth during 2021 and 2022, the share price accelerated its rise from late 2023 into 2025, despite some volatility in mid-2025 where a decline was observed.

Earnings Per Share (EPS)

EPS demonstrated a pattern of steady improvement, beginning at $2.44 in the first quarter of 2021 and increasing consistently over the timeframe. After some variability in 2021 and early 2022, the EPS showed marked growth from 2023 onwards, reaching a high of $10.85 in June 2025 before slightly tapering off to $10.61 in September 2025. This upward trajectory indicates strengthening profitability on a per-share basis.

Price to Earnings Ratio (P/E)

The P/E ratio exhibited considerable fluctuation throughout the periods. Initially, it was relatively high, peaking above 113 in late 2022, which suggests that the stock was possibly overvalued relative to earnings at that time or that earnings were temporarily depressed. From 2023, the P/E ratio declined substantially, stabilizing around the low to mid-20s range by 2025. This trend reflects a normalization where the increase in share price was more aligned with earnings growth, indicating improved valuation balance.

Summary of Trends

Collectively, the data illustrate progressive earnings growth accompanied by a rising share price, suggesting strong market confidence and operational performance improvement. The P/E ratio's high volatility early on corrected over time, implying that earlier elevated valuations adjusted to more sustainable levels as earnings caught up. The recent slight decline in P/E ratio alongside EPS growth and share price stabilization may reflect a maturing phase with more balanced market expectations.

The analyzed financial data reveals several key trends regarding the share price, operating profit per share, and their valuation multiple over a period spanning from March 2021 to September 2025.

Share Price

The share price shows a general upward trajectory with fluctuations. Initially starting at $128.48 in March 2021, it rose to a peak of $147.49 by December 2021, followed by moderate declines and increases. Notably, from early 2023, the share price accelerated its growth reaching a peak of $262.18 in March 2025 before softening to $219.99 by September 2025. This suggests strong market confidence and appreciation in value, particularly during the 2023-2025 period.

Operating Profit Per Share

Operating profit per share displays a pattern of initial volatility followed by consistent growth. After a high point of $6.83 in June 2021, it declined through mid-2022, hitting lows near $3.91 by September 2022. From late 2022 onward, a steady increase is observed, reaching $17.10 by September 2025. This indicates significant operational improvement and profitability gains over time.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio shows considerable variation reflective of changing investor valuations. Starting around the low twenties in early 2021, the ratio surged above 34 in mid-2022, driven by declining operating profits while the share price remained relatively elevated. Subsequently, as operating profits increased substantially from late 2022, the ratio contracted, stabilizing mostly in the low to mid-teens range by 2025. This compression suggests a market reassessment towards more reasonable valuation multiples aligned with improved profitability.

In summary, the data demonstrates a company experiencing an initial dip in operating profits which impacted valuation multiples. However, operational improvements led to robust profit growth from late 2022 onwards, accompanied by a strong rise in share price. The multiple contraction towards the later periods reflects a maturing market perception balancing share price against enhanced earnings capacity. Overall, the financial indicators point to strengthening fundamentals and growing market confidence over the forecast horizon.

Share Price Trends

The share price exhibited notable fluctuations over the observed periods. Initially, from the first quarter of 2021 to the last quarter of 2021, the share price oscillated between approximately $115.80 and $144.50, indicating some volatility. Moving into 2022, the share price maintained an upward trajectory, reaching a peak of around $147.49 by year-end. This upward momentum continued into 2023 and 2024, with the share price climbing significantly, peaking at $262.18 in the third quarter of 2025. However, toward the latter part of 2025, a decline is observable, with the price dropping to $219.99 by the third quarter of 2025.

Sales per Share Movements

Sales per share demonstrated a steady upward trend throughout the entire period under review. Starting at approximately $61.79 in the first quarter of 2021, sales per share gradually increased each quarter, reaching $76.75 by the third quarter of 2025. This steady growth suggests consistent improvement in sales performance relative to the number of shares outstanding, indicating overall business growth and perhaps enhanced operational efficiency.

Price-to-Sales (P/S) Ratio Dynamics

The P/S ratio experienced variability that correlates with movements in both share price and sales per share. Early in the period, the ratio ranged roughly between 1.82 and 2.27, reflecting moderate valuation multiples relative to sales. Notably, starting in 2023, the P/S ratio began to rise significantly, reaching a high of 3.60 in the third quarter of 2025, before retreating to approximately 2.87 by the end of the available data. This increase suggests that market valuation has accelerated faster than sales growth, potentially indicating heightened investor expectations or speculative interest during this phase.

Overall Insights

Collectively, the data indicate a company experiencing consistent sales growth per share alongside an initially volatile but ultimately ascending share price. The rising P/S ratio in the latter periods reflects an increasing premium placed on sales, suggesting optimistic market sentiment. However, the recent decline in share price and P/S ratio towards the end of the timeline may warrant attention, as it could reflect market recalibration or concerns. The steady increase in sales per share alongside fluctuating valuation multiples highlights the importance of monitoring both operational performance and market sentiment for a comprehensive view.

The share price exhibits a general upward trend over the examined periods, with some fluctuations. Initially, the share price rose from $128.48 to a peak near $144.5 in mid-2021, then experienced a decline towards the end of that year. In 2022, the price demonstrated recovery and gradual increase, reaching approximately $147.49 by year's end. The upward momentum strengthened considerably in 2024, culminating in a peak of $262.18 in early 2025 before experiencing a moderate decrease to around $220 by the third quarter of 2025.

The book value per share (BVPS) remains relatively stable throughout the periods, ranging narrowly from about $52.97 to $57.12. Minor fluctuations are observed without any pronounced upward or downward trend, suggesting consistent book value stability across the quarters.

The price-to-book value (P/BV) ratio shows a marked increase over time. Starting at approximately 2.41 in early 2021, the ratio remains around the mid-2 to low-3 range during 2021 and 2022. Beginning in 2023, the P/BV ratio climbs more sharply, reaching near 4.87 by mid-2025, indicating that the market valuation relative to the company’s book value has risen significantly.

Share Price

Shows a positive growth trajectory with cyclical fluctuations, peaking in early 2025 before retracting slightly.

Book Value Per Share (BVPS)

Fairly stable with minimal variation, reflecting consistent underlying equity value over time.

Price-to-Book Value Ratio (P/BV)

Increases substantially, suggesting growing market confidence and/or expectations of future profitability not reflected in book value.

Overall, the data indicates growing investor optimism, as evidenced by rising share prices and P/BV ratios, despite stable intrinsic book value per share. This may imply an improving market perception of future earnings potential or intangible asset value beyond the book value.