Common Stock Valuation Ratios (Price Multiples)
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).
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Operating Profit Margin since 2013
- Return on Equity (ROE) since 2013
- Debt to Equity since 2013
- Price to Operating Profit (P/OP) since 2013
- Price to Book Value (P/BV) since 2013
- Analysis of Revenues
- Analysis of Debt
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Current Valuation Ratios
T-Mobile US Inc., current price multiples
| T-Mobile US Inc. | AT&T Inc. | Verizon Communications Inc. | Telecommunication Services | Communication Services | ||||
|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||
| Current share price (P) | ||||||||
| No. shares of common stock outstanding | ||||||||
| Growth rate (g) | ||||||||
| Earnings per share (EPS) | ||||||||
| Next year expected EPS | ||||||||
| Operating profit per share | ||||||||
| Sales per share | ||||||||
| Book value per share (BVPS) | ||||||||
| Valuation Ratios (Price Multiples) | ||||||||
| Price to earnings (P/E) | ||||||||
| Price to next year expected earnings | ||||||||
| Price-earnings-growth (PEG) | ||||||||
| Price to operating profit (P/OP) | ||||||||
| Price to sales (P/S) | ||||||||
| Price to book value (P/BV) | ||||||||
Based on: 10-K (reporting date: 2024-12-31).
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
The financial ratios exhibit notable trends over the five-year period. The Price to Earnings (P/E) ratio displays a fluctuating pattern, initially rising from 48.36 in 2020 to a peak of 69.44 in 2022, followed by a sharp decline to approximately 23.09 in 2023 and maintaining a similar level at 23.46 in 2024. This trend suggests a period of high market valuation relative to earnings up to 2022, succeeded by a reassessment or improvement in earnings leading to a lower valuation multiple.
Similarly, the Price to Operating Profit (P/OP) ratio follows a comparable trajectory, increasing steadily from 22.33 in 2020 to 27.49 in 2022 before declining substantially to 13.46 in 2023 and a slight rise to 14.77 in 2024. This indicates that the market’s valuation relative to operating profit became more conservative after 2022, possibly reflecting enhanced operational performance or changing market perceptions.
The Price to Sales (P/S) ratio shows a different pattern, with a decrease from 2.17 in 2020 to 1.94 in 2021, then a consistent increase each year through 2024, reaching 3.27. This steady upward trajectory implies growing market confidence in the company’s sales growth prospects or an expansion of pricing relative to sales over time.
Finally, the Price to Book Value (P/BV) ratio follows an upward trend across the entire period, moving from 2.27 in 2020 to 4.31 in 2024. This consistent increase indicates rising market valuation relative to the company's net asset value, potentially reflecting improved asset quality, growth expectations, or intangible asset appreciation.
Overall, the ratios reveal a peak in valuation multiples around 2022 for earnings and operating profit, followed by a downward adjustment, while sales and book value multiples show progressive growth. This mixed pattern suggests evolving market dynamics, with increasing emphasis on sales growth and asset value, accompanied by a normalization of earnings and operating profit valuations in recent years.
Price to Earnings (P/E)
T-Mobile US Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Telecommunication Services | ||||||
| P/E Ratio, Industry | ||||||
| Communication Services | ||||||
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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of T-Mobile US Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a consistent upward trajectory over the five-year period. Starting at $119.22 at the end of 2020, it increased moderately to $124.48 in 2021 and continued to rise to $147.49 in 2022. The growth accelerated in subsequent years, with the price reaching $161.78 in 2023 and sharply increasing to $232.97 by the end of 2024. This indicates strong market confidence and positive investor sentiment towards the company.
- Earnings Per Share (EPS) Trend
- The EPS remained relatively stable in the first three years, slightly declining from $2.47 in 2020 to $2.42 in 2021, then dropping more noticeably to $2.12 in 2022. However, a significant improvement was observed in 2023, with EPS surging to $7.01, followed by an even more substantial increase to $9.93 in 2024. This sharp rise suggests enhanced profitability and operational efficiency or potentially impactful strategic decisions implemented during this period.
- Price-to-Earnings (P/E) Ratio Trend
- The P/E ratio showed an initial increase from 48.36 in 2020 to a peak of 69.44 in 2022, reflecting rising share prices not matched by EPS growth during those years. From 2023 onward, the P/E ratio declined significantly to 23.09, remaining relatively stable at 23.46 in 2024. This decrease aligns with the substantial EPS improvement, indicating a market adjustment where earnings growth caught up with stock price increases, leading to more balanced valuation multiples.
- Overall Analysis
- The data reveal a company experiencing gradual share price appreciation until 2022, followed by accelerated market valuation linked to a marked improvement in earnings from 2023 onwards. The initial divergence between share price and earnings resulted in high P/E ratios, signaling an overvaluation or anticipation of future growth. The subsequent alignment of P/E ratios with stronger earnings performance suggests that profitability gains substantiated the earlier increases in stock price, indicating enhanced financial health and investor confidence.
Price to Operating Profit (P/OP)
T-Mobile US Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Telecommunication Services | ||||||
| P/OP Ratio, Industry | ||||||
| Communication Services | ||||||
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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of T-Mobile US Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The analysis of the annual financial data reveals several notable trends regarding the share price, operating profit per share, and the price-to-operating profit ratio over the five-year period from 2020 to 2024.
- Share Price
- The share price exhibited a consistent upward trajectory throughout the period. Beginning at $119.22 in 2020, it increased steadily each year, reaching $232.97 by the end of 2024. This represents a significant growth of approximately 95.4% over five years, indicating increasing investor confidence and market valuation.
- Operating Profit Per Share
- Operating profit per share remained relatively stable from 2020 to 2022, fluctuating slightly between $5.34 and $5.52. A substantial increase was observed starting in 2023, where the figure more than doubled to $12.02 and further rose to $15.77 in 2024. This sharp growth suggests notable improvements in operational efficiency or profitability during the latter years of the period.
- Price-to-Operating Profit Ratio (P/OP)
- The P/OP ratio was fairly consistent around 22 to 28 from 2020 through 2022. However, a marked decline occurred in 2023, dropping to 13.46, with a slight increase to 14.77 in 2024. This decline in the ratio concurrent with rising operating profit per share implies that the share price growth was more aligned or even conservative relative to profitability improvements, potentially reflecting enhanced market valuation efficiency or a re-rating of the company's earnings multiple.
Overall, the data indicates a strong performance with improving profitability from 2023 onwards, which, coupled with a near doubling of the share price, demonstrates a positive market outlook. The reduced P/OP ratio in the final years suggests the company’s stock became less expensive relative to its earnings, possibly signaling an undervaluation or a more sustainable pricing level after previous higher multiples.
Price to Sales (P/S)
T-Mobile US Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Telecommunication Services | ||||||
| P/S Ratio, Industry | ||||||
| Communication Services | ||||||
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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of T-Mobile US Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price has shown a consistent upward trend over the five-year period. Starting at $119.22 in 2020, it increased steadily each year, reaching $232.97 by 2024. This represents a significant appreciation in stock value, particularly notable in the jump from 2023 to 2024.
- Sales Per Share
- Sales per share have also exhibited gradual growth. Beginning at $55.03 in 2020, the value increased annually but at a more moderate pace compared to the share price. By 2024, sales per share amounted to $71.29, indicating steady revenue growth per outstanding share.
- Price-to-Sales (P/S) Ratio
- The P/S ratio experienced a fluctuating yet upward trajectory. Initially at 2.17 in 2020, it dipped slightly to 1.94 in 2021, likely due to share price changes relative to sales. Afterwards, the ratio rose to 2.26 in 2022 and continued increasing to 3.27 by 2024. This upward movement suggests that the market is valuing the company’s sales more highly over time, potentially reflecting improved market sentiment, anticipated growth, or profitability expectations beyond mere sales figures.
- Overall Insights
- The data indicates an improving market valuation for the company, with the share price appreciating at a faster rate than sales per share. This divergence leads to an increasing P/S ratio, implying enhanced investor confidence or expectations of greater future earnings. Sales per share growth remains positive but modest, suggesting steady operational performance. The combined trends suggest that while fundamental sales growth is stable, market sentiment and valuation multiples have increased more aggressively in recent years.
Price to Book Value (P/BV)
T-Mobile US Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Telecommunication Services | ||||||
| P/BV Ratio, Industry | ||||||
| Communication Services | ||||||
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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of T-Mobile US Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrates a consistent upward trajectory over the five-year period, increasing from $119.22 at the end of 2020 to $232.97 by the end of 2024. This represents a substantial appreciation in market value, particularly notable in the last year where the share price surged by approximately 44% from $161.78 to $232.97.
- Book Value per Share (BVPS) Trend
- The BVPS exhibits a relatively stable trend with minor fluctuations. It increased slightly from $52.58 in 2020 to a peak of $57.12 in 2022, followed by a gradual decline to $54.08 by the end of 2024. The small variation suggests steadiness in the underlying book value emphasizing consistent asset and equity base relative to outstanding shares.
- Price-to-Book Value Ratio (P/BV) Trend
- The P/BV ratio indicates an increasing premium the market places over the book value of equity. The ratio began around 2.27 in 2020 and remained relatively flat through 2021, then increased steadily to 4.31 by 2024. The sharp rise, especially evident after 2022, reflects growing investor optimism or perceived intangible asset value beyond book equity, culminating in a significant market valuation premium.
- Overall Insights
- The data reveals a strong market confidence reflected in the rising share price and expanding P/BV ratio, while the book value per share remains stable. This divergence points to market expectations of future growth, profitability, or strategic advantages that are not fully captured in the book value. The substantial increase in share price and valuation multiples in the latest year may indicate accelerated investor enthusiasm or positive developments anticipated or realized by the company.