Intrinsic value of T-Mobile US - TMUS

Previous Close

$67.89

  Intrinsic Value

$74.35

stock screener

  Rating & Target

hold

+10%

Previous close

$67.89

 
Intrinsic value

$74.35

 
Up/down potential

+10%

 
Rating

hold

We calculate the intrinsic value of TMUS stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 57.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.50
  3.65
  3.78
  3.91
  4.02
  4.11
  4.20
  4.28
  4.35
  4.42
  4.48
  4.53
  4.58
  4.62
  4.66
  4.69
  4.72
  4.75
  4.77
  4.80
  4.82
  4.84
  4.85
  4.87
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
Revenue, $m
  42,025
  43,559
  45,208
  46,974
  48,860
  50,870
  53,008
  55,279
  57,686
  60,235
  62,931
  65,782
  68,792
  71,969
  75,321
  78,854
  82,578
  86,500
  90,630
  94,978
  99,554
  104,368
  109,433
  114,759
  120,359
  126,248
  132,438
  138,944
  145,782
  152,968
Variable operating expenses, $m
  22,479
  23,164
  23,899
  24,687
  25,529
  26,426
  27,380
  28,393
  29,467
  30,605
  28,081
  29,353
  30,696
  32,114
  33,610
  35,186
  36,848
  38,598
  40,441
  42,381
  44,423
  46,571
  48,831
  51,208
  53,707
  56,334
  59,096
  62,000
  65,051
  68,258
Fixed operating expenses, $m
  14,724
  15,048
  15,379
  15,717
  16,063
  16,416
  16,778
  17,147
  17,524
  17,909
  18,303
  18,706
  19,118
  19,538
  19,968
  20,407
  20,856
  21,315
  21,784
  22,263
  22,753
  23,254
  23,765
  24,288
  24,823
  25,369
  25,927
  26,497
  27,080
  27,676
Total operating expenses, $m
  37,203
  38,212
  39,278
  40,404
  41,592
  42,842
  44,158
  45,540
  46,991
  48,514
  46,384
  48,059
  49,814
  51,652
  53,578
  55,593
  57,704
  59,913
  62,225
  64,644
  67,176
  69,825
  72,596
  75,496
  78,530
  81,703
  85,023
  88,497
  92,131
  95,934
Operating income, $m
  4,822
  5,348
  5,930
  6,569
  7,268
  8,028
  8,851
  9,739
  10,695
  11,721
  16,547
  17,722
  18,978
  20,317
  21,743
  23,260
  24,873
  26,587
  28,405
  30,334
  32,378
  34,543
  36,836
  39,263
  41,830
  44,545
  47,414
  50,447
  53,651
  57,035
EBITDA, $m
  12,890
  13,574
  14,326
  15,148
  16,042
  17,009
  18,053
  19,176
  20,380
  21,669
  23,047
  24,517
  26,084
  27,751
  29,523
  31,406
  33,404
  35,522
  37,767
  40,145
  42,661
  45,324
  48,140
  51,117
  54,263
  57,586
  61,095
  64,800
  68,710
  72,836
Interest expense (income), $m
  0
  1,699
  1,801
  1,910
  2,027
  2,152
  2,286
  2,428
  2,580
  2,741
  2,912
  3,093
  3,284
  3,487
  3,700
  3,926
  4,163
  4,414
  4,678
  4,957
  5,250
  5,558
  5,883
  6,225
  6,584
  6,962
  7,359
  7,777
  8,216
  8,678
  9,163
Earnings before tax, $m
  3,123
  3,547
  4,020
  4,543
  5,116
  5,742
  6,422
  7,159
  7,953
  8,809
  13,454
  14,438
  15,491
  16,617
  17,817
  19,097
  20,459
  21,908
  23,448
  25,084
  26,819
  28,660
  30,612
  32,679
  34,868
  37,186
  39,637
  42,231
  44,973
  47,872
Tax expense, $m
  843
  958
  1,085
  1,226
  1,381
  1,550
  1,734
  1,933
  2,147
  2,378
  3,632
  3,898
  4,183
  4,487
  4,811
  5,156
  5,524
  5,915
  6,331
  6,773
  7,241
  7,738
  8,265
  8,823
  9,414
  10,040
  10,702
  11,402
  12,143
  12,925
Net income, $m
  2,280
  2,589
  2,935
  3,316
  3,735
  4,192
  4,688
  5,226
  5,806
  6,430
  9,821
  10,540
  11,309
  12,130
  13,007
  13,941
  14,935
  15,993
  17,117
  18,311
  19,578
  20,922
  22,346
  23,856
  25,454
  27,145
  28,935
  30,829
  32,830
  34,946

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  73,087
  75,755
  78,622
  81,694
  84,974
  88,470
  92,189
  96,137
  100,323
  104,756
  109,446
  114,403
  119,638
  125,164
  130,993
  137,138
  143,614
  150,435
  157,618
  165,180
  173,137
  181,510
  190,317
  199,580
  209,320
  219,561
  230,326
  241,642
  253,534
  266,032
Adjusted assets (=assets-cash), $m
  73,087
  75,755
  78,622
  81,694
  84,974
  88,470
  92,189
  96,137
  100,323
  104,756
  109,446
  114,403
  119,638
  125,164
  130,993
  137,138
  143,614
  150,435
  157,618
  165,180
  173,137
  181,510
  190,317
  199,580
  209,320
  219,561
  230,326
  241,642
  253,534
  266,032
Revenue / Adjusted assets
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
Average production assets, $m
  39,504
  40,946
  42,495
  44,155
  45,929
  47,818
  49,828
  51,962
  54,224
  56,621
  59,155
  61,835
  64,665
  67,651
  70,802
  74,123
  77,623
  81,310
  85,193
  89,280
  93,581
  98,106
  102,867
  107,873
  113,138
  118,673
  124,491
  130,607
  137,035
  143,790
Working capital, $m
  -2,269
  -2,352
  -2,441
  -2,537
  -2,638
  -2,747
  -2,862
  -2,985
  -3,115
  -3,253
  -3,398
  -3,552
  -3,715
  -3,886
  -4,067
  -4,258
  -4,459
  -4,671
  -4,894
  -5,129
  -5,376
  -5,636
  -5,909
  -6,197
  -6,499
  -6,817
  -7,152
  -7,503
  -7,872
  -8,260
Total debt, $m
  30,014
  31,828
  33,778
  35,867
  38,098
  40,475
  43,003
  45,688
  48,534
  51,549
  54,738
  58,109
  61,669
  65,427
  69,390
  73,569
  77,972
  82,611
  87,495
  92,637
  98,048
  103,742
  109,731
  116,030
  122,653
  129,617
  136,937
  144,631
  152,718
  161,217
Total liabilities, $m
  49,699
  51,513
  53,463
  55,552
  57,783
  60,160
  62,688
  65,373
  68,219
  71,234
  74,423
  77,794
  81,354
  85,112
  89,075
  93,254
  97,657
  102,296
  107,180
  112,322
  117,733
  123,427
  129,416
  135,715
  142,338
  149,302
  156,622
  164,316
  172,403
  180,902
Total equity, $m
  23,388
  24,242
  25,159
  26,142
  27,192
  28,311
  29,500
  30,764
  32,103
  33,522
  35,023
  36,609
  38,284
  40,053
  41,918
  43,884
  45,956
  48,139
  50,438
  52,857
  55,404
  58,083
  60,902
  63,866
  66,983
  70,260
  73,704
  77,325
  81,131
  85,130
Total liabilities and equity, $m
  73,087
  75,755
  78,622
  81,694
  84,975
  88,471
  92,188
  96,137
  100,322
  104,756
  109,446
  114,403
  119,638
  125,165
  130,993
  137,138
  143,613
  150,435
  157,618
  165,179
  173,137
  181,510
  190,318
  199,581
  209,321
  219,562
  230,326
  241,641
  253,534
  266,032
Debt-to-equity ratio
  1.280
  1.310
  1.340
  1.370
  1.400
  1.430
  1.460
  1.490
  1.510
  1.540
  1.560
  1.590
  1.610
  1.630
  1.660
  1.680
  1.700
  1.720
  1.730
  1.750
  1.770
  1.790
  1.800
  1.820
  1.830
  1.840
  1.860
  1.870
  1.880
  1.890
Adjusted equity ratio
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,280
  2,589
  2,935
  3,316
  3,735
  4,192
  4,688
  5,226
  5,806
  6,430
  9,821
  10,540
  11,309
  12,130
  13,007
  13,941
  14,935
  15,993
  17,117
  18,311
  19,578
  20,922
  22,346
  23,856
  25,454
  27,145
  28,935
  30,829
  32,830
  34,946
Depreciation, amort., depletion, $m
  8,068
  8,226
  8,396
  8,579
  8,774
  8,981
  9,202
  9,437
  9,685
  9,949
  6,501
  6,795
  7,106
  7,434
  7,780
  8,145
  8,530
  8,935
  9,362
  9,811
  10,284
  10,781
  11,304
  11,854
  12,433
  13,041
  13,680
  14,352
  15,059
  15,801
Funds from operations, $m
  10,347
  10,815
  11,331
  11,895
  12,508
  13,173
  13,890
  14,662
  15,491
  16,379
  16,322
  17,335
  18,415
  19,564
  20,787
  22,086
  23,465
  24,928
  26,479
  28,122
  29,862
  31,703
  33,650
  35,710
  37,886
  40,186
  42,616
  45,181
  47,889
  50,747
Change in working capital, $m
  -77
  -83
  -89
  -95
  -102
  -109
  -115
  -123
  -130
  -138
  -146
  -154
  -163
  -172
  -181
  -191
  -201
  -212
  -223
  -235
  -247
  -260
  -273
  -288
  -302
  -318
  -334
  -351
  -369
  -388
Cash from operations, $m
  10,424
  10,898
  11,420
  11,990
  12,610
  13,282
  14,006
  14,785
  15,621
  16,517
  16,467
  17,489
  18,577
  19,736
  20,968
  22,277
  23,666
  25,140
  26,702
  28,357
  30,109
  31,963
  33,924
  35,997
  38,189
  40,504
  42,950
  45,532
  48,258
  51,136
Maintenance CAPEX, $m
  -4,193
  -4,341
  -4,500
  -4,670
  -4,852
  -5,047
  -5,255
  -5,476
  -5,710
  -5,959
  -6,222
  -6,501
  -6,795
  -7,106
  -7,434
  -7,780
  -8,145
  -8,530
  -8,935
  -9,362
  -9,811
  -10,284
  -10,781
  -11,304
  -11,854
  -12,433
  -13,041
  -13,680
  -14,352
  -15,059
New CAPEX, $m
  -1,349
  -1,442
  -1,550
  -1,660
  -1,773
  -1,890
  -2,010
  -2,134
  -2,263
  -2,396
  -2,535
  -2,679
  -2,830
  -2,987
  -3,150
  -3,321
  -3,500
  -3,687
  -3,882
  -4,087
  -4,301
  -4,525
  -4,760
  -5,007
  -5,265
  -5,535
  -5,819
  -6,116
  -6,428
  -6,755
Cash from investing activities, $m
  -5,542
  -5,783
  -6,050
  -6,330
  -6,625
  -6,937
  -7,265
  -7,610
  -7,973
  -8,355
  -8,757
  -9,180
  -9,625
  -10,093
  -10,584
  -11,101
  -11,645
  -12,217
  -12,817
  -13,449
  -14,112
  -14,809
  -15,541
  -16,311
  -17,119
  -17,968
  -18,860
  -19,796
  -20,780
  -21,814
Free cash flow, $m
  4,882
  5,115
  5,371
  5,660
  5,985
  6,345
  6,741
  7,176
  7,649
  8,162
  7,710
  8,309
  8,952
  9,643
  10,383
  11,175
  12,021
  12,923
  13,885
  14,908
  15,997
  17,154
  18,383
  19,687
  21,070
  22,537
  24,090
  25,736
  27,478
  29,322
Issuance/(repayment) of debt, $m
  1,695
  1,814
  1,950
  2,089
  2,231
  2,377
  2,528
  2,685
  2,847
  3,015
  3,189
  3,371
  3,560
  3,758
  3,964
  4,179
  4,403
  4,639
  4,884
  5,142
  5,411
  5,693
  5,989
  6,299
  6,623
  6,964
  7,320
  7,694
  8,087
  8,498
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,695
  1,814
  1,950
  2,089
  2,231
  2,377
  2,528
  2,685
  2,847
  3,015
  3,189
  3,371
  3,560
  3,758
  3,964
  4,179
  4,403
  4,639
  4,884
  5,142
  5,411
  5,693
  5,989
  6,299
  6,623
  6,964
  7,320
  7,694
  8,087
  8,498
Total cash flow (excl. dividends), $m
  6,577
  6,929
  7,320
  7,749
  8,216
  8,722
  9,270
  9,860
  10,495
  11,176
  10,900
  11,680
  12,513
  13,401
  14,347
  15,354
  16,424
  17,562
  18,769
  20,050
  21,408
  22,847
  24,372
  25,986
  27,693
  29,500
  31,411
  33,431
  35,565
  37,820
Retained Cash Flow (-), $m
  -829
  -854
  -918
  -983
  -1,050
  -1,119
  -1,190
  -1,263
  -1,340
  -1,419
  -1,501
  -1,586
  -1,675
  -1,768
  -1,865
  -1,966
  -2,072
  -2,183
  -2,299
  -2,420
  -2,546
  -2,679
  -2,818
  -2,964
  -3,117
  -3,277
  -3,445
  -3,621
  -3,806
  -3,999
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  5,748
  6,075
  6,403
  6,766
  7,166
  7,603
  8,080
  8,597
  9,155
  9,758
  9,399
  10,093
  10,837
  11,633
  12,482
  13,387
  14,352
  15,379
  16,470
  17,630
  18,862
  20,168
  21,553
  23,021
  24,577
  26,223
  27,966
  29,810
  31,759
  33,821
Discount rate, %
  7.20
  7.56
  7.94
  8.33
  8.75
  9.19
  9.65
  10.13
  10.64
  11.17
  11.73
  12.31
  12.93
  13.58
  14.26
  14.97
  15.72
  16.50
  17.33
  18.19
  19.10
  20.06
  21.06
  22.11
  23.22
  24.38
  25.60
  26.88
  28.22
  29.64
PV of cash for distribution, $m
  5,362
  5,251
  5,092
  4,912
  4,711
  4,487
  4,240
  3,972
  3,686
  3,384
  2,775
  2,505
  2,230
  1,957
  1,691
  1,437
  1,200
  984
  791
  623
  480
  361
  266
  190
  133
  90
  59
  38
  23
  14
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands. The company offers voice, messaging, and data services to approximately 71 million customers in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, tablets, and other mobile communication devices, as well as accessories that are manufactured by various suppliers. The company offers services, devices, and accessories under the T-Mobile and MetroPCS brands through its owned and operated retail stores, as well as Websites. T-Mobile US, Inc. also sells its devices and accessories to dealers and other third party distributors for resale through independent third-party retail outlets and various third-party Websites. As of December 31, 2016, it had approximately 2,000 T-Mobile and MetroPCS retail locations, including stores and kiosks. The company was founded in 1994 and is headquartered in Bellevue, Washington. T-Mobile US, Inc. is as a subsidiary of Deutsche Telekom Holding B.V.

FINANCIAL RATIOS  of  T-Mobile US (TMUS)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

TMUS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TMUS stock intrinsic value calculation we used $40604 million for the last fiscal year's total revenue generated by T-Mobile US. The default revenue input number comes from 0001 income statement of T-Mobile US. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our TMUS stock valuation model: a) initial revenue growth rate of 3.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.2%, whose default value for TMUS is calculated based on our internal credit rating of T-Mobile US, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of T-Mobile US.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of TMUS stock the variable cost ratio is equal to 53.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $14407 million in the base year in the intrinsic value calculation for TMUS stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6% for T-Mobile US.

Corporate tax rate of 27% is the nominal tax rate for T-Mobile US. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the TMUS stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for TMUS are equal to 94%.

Life of production assets of 9.1 years is the average useful life of capital assets used in T-Mobile US operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for TMUS is equal to -5.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $22559 million for T-Mobile US - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 846.846 million for T-Mobile US is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of T-Mobile US at the current share price and the inputted number of shares is $57.5 billion.

RELATED COMPANIES Price Int.Val. Rating
VZ Verizon Commun 58.72 66.50  buy
S Sprint 6.09 13.03  str.buy
T AT&T 30.78 51.95  str.buy
TDS Telephone&Data 35.10 21.89  sell
USM U.S. Cellular 53.75 25.81  sell
SHEN Shenandoah Tel 44.87 13.07  str.sell
WIFI Boingo Wireles 24.84 12.13  str.sell

COMPANY NEWS

▶ 1HUDDLE reveals new job training game   [03:28PM  Yahoo Finance Video]
▶ Dish Stock Falls As Pay-TV Subscriber Losses Accelerate, Profit Beats   [Nov-07-18 04:11PM  Investor's Business Daily]
▶ Don't Forget About Sprint   [12:57PM  GuruFocus.com]
▶ Watch These 2 Customer Metrics at T-Mobile   [Nov-03-18 12:00PM  Motley Fool]
▶ Sprint and T-Mobile sign a big deal (no, not that one)   [Nov-02-18 09:35AM  American City Business Journals]
▶ T-Mobile Earnings Jump 48%   [11:43AM  Motley Fool]
▶ Company News For Nov 1, 2018   [09:53AM  Zacks]
▶ T-Mobiles Stock Is a Winner, With or Without Sprint   [Oct-31-18 03:14PM  Barrons.com]
▶ Why Sprint Stock Jumped Today   [01:12PM  Motley Fool]
▶ T-Mobile receives shareholder approval for Sprint merger plans   [10:28AM  American City Business Journals]
▶ Sprint Earnings: Trick or Treat?   [09:45AM  Bloomberg]
▶ T-Mobile, Sprint receive shareholder approval for merger plans   [09:27AM  American City Business Journals]
▶ [$$] Stocks to Watch   [06:39AM  The Wall Street Journal]
▶ [$$] T-Mobile Reports Surge in New Customers   [06:54PM  The Wall Street Journal]
▶ T-Mobile: 3Q Earnings Snapshot   [06:12PM  Associated Press]
▶ T-Mobile deliver strong 3Q earnings results   [05:06PM  Fox Business Videos]
▶ Analysts bump up odds T-Mobile/Sprint merger will happen   [03:14PM  American City Business Journals]
▶ T-Mobile + OnePlus 6T = Exclusive Soulmates   [12:15PM  Business Wire]
▶ New York attorney general amps up T-Mobile, Sprint investigation   [10:34AM  American City Business Journals]
▶ AT&T satellite TV numbers disappoint, shares fall   [Oct-24-18 11:46AM  Reuters]
▶ Verizon adds 295K phone subscribers, exceeds analyst expectations   [Oct-23-18 02:46PM  American City Business Journals]
▶ 5 Companies Hit 52-Week Highs   [12:21PM  GuruFocus.com]
▶ T-Mobile CEO said he'd rather live in Kansas City than Bellevue   [Oct-22-18 02:03PM  American City Business Journals]
▶ The iPhone XR is Coming to T-Mobile   [12:51PM  Business Wire]
▶ Is Sprint Corporation a Buy?   [10:39AM  Motley Fool]
▶ Not Ready to Bounce Yet   [09:15AM  Zacks]
▶ T-Mobile moves forward with Bellevue HQ renovation despite Sprint merger bid   [Oct-12-18 04:59PM  American City Business Journals]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.