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T-Mobile US, Inc. (TMUS)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$244.44 - $652.53$374.49
Multi-Stage$168.84 - $184.37$176.46
Blended Fair Value$275.48
Current Price$239.38
Upside15.08%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%2.880.650.000.000.000.000.000.000.000.00
YoY Growth--341.77%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.08%0.40%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)11,870.00
(-) Cash Dividends Paid (M)4,000.00
(=) Cash Retained (M)7,870.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2,374.001,483.75890.25
Cash Retained (M)7,870.007,870.007,870.00
(-) Cash Required (M)-2,374.00-1,483.75-890.25
(=) Excess Retained (M)5,496.006,386.256,979.75
(/) Shares Outstanding (M)1,144.841,144.841,144.84
(=) Excess Retained per Share4.805.586.10
LTM Dividend per Share3.493.493.49
(+) Excess Retained per Share4.805.586.10
(=) Adjusted Dividend8.299.079.59
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$244.44$374.49$652.53
Upside / Downside2.11%56.44%172.59%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)11,870.0012,641.5513,463.2514,338.3615,270.3616,262.9316,750.82
Payout Ratio33.70%44.96%56.22%67.48%78.74%90.00%92.50%
Projected Dividends (M)4,000.005,683.487,568.919,675.4312,023.8314,636.6415,494.51

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)5,161.455,210.385,259.30
Year 2 PV (M)6,242.366,361.266,481.28
Year 3 PV (M)7,246.767,454.787,666.76
Year 4 PV (M)8,178.508,493.028,816.53
Year 5 PV (M)9,041.289,477.989,931.39
PV of Terminal Value (M)157,421.03165,024.52172,919.02
Equity Value (M)193,291.38202,021.94211,074.28
Shares Outstanding (M)1,144.841,144.841,144.84
Fair Value$168.84$176.46$184.37
Upside / Downside-29.47%-26.28%-22.98%

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