T-Mobile US, Inc. (TMUS) DCF Valuation
Transparent DCF models put T-Mobile US, Inc. (TMUS)'s fair value in a range of $58.78 – $390.90 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $179.46 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $179.46, the market is pricing in roughly +13.8%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +45.5%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$179.46
Fair-Value Range
$58.78 – $390.90
Market-Implied Growth
+13.8%/yr
vs +45.5% 5Y actual
TMUS DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $8.8B · 1.08B shares · net debt $80.7B
Estimated Fair Value
$58.78
-67.2% vs $179.46
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $179.46; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $91.14 | $99.64 | $110 | $122 | $136 |
| 9.0% | $67.77 | $73.58 | $80.28 | $88.10 | $97.34 |
| 10.0% | $49.96 | $54.10 | $58.78 | $64.13 | $70.30 |
| 11.0% | $35.97 | $39.00 | $42.38 | $46.19 | $50.50 |
| 12.0% | $24.69 | $26.96 | $29.48 | $32.27 | $35.39 |
About T-Mobile US, Inc.
T-Mobile US, Inc., alongside its subsidiaries, offers mobile telecommunications services across the United States, Puerto Rico, and the U.S. Virgin Islands. Catering to approximately 108.7 million subscribers, the company delivers essential voice, messaging, and data connectivity to customers in postpaid, prepaid, and wholesale segments. Beyond services, T-Mobile also supplies a broad array of wireless devices, such as smartphones, wearables, tablets, and other mobile communication gadgets, along with associated accessories. These offerings are marketed under both the T-Mobile and Metro by T-Mobile brands. Direct distribution occurs through its proprietary retail stores, the T-Mobile mobile application, customer service channels, and its official online platforms. Additionally, the company provides devices to independent dealers and other distributors for resale via external retail locations and various third-party websites. As of December 31, 2021, its robust network infrastructure encompassed approximately 102,000 macro cell sites and 41,000 small cell/distributed antenna system locations. T-Mobile US, Inc. was established in 1994 and maintains its headquarters in Bellevue, Washington.
- Sector
- Communication Services
- Industry
- Telecommunications Services
- CEO
- Srinivasan Gopalan