Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

T-Mobile US, Inc. (TMUS)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$438.62 - $2,062.00$970.95
Multi-Stage$232.98 - $254.80$243.69
Blended Fair Value$607.32
Current Price$239.38
Upside153.71%
DecisionBuy

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 Rate7.50%7.50%7.50%
Growth Rate5.50%6.50%7.50%
Fair Value$438.62$970.95$2,062.00
Upside / Downside83.23%305.61%761.39%

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 Rate7.50%7.50%7.50%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)5,237.555,287.205,336.84
Year 2 PV (M)6,427.796,550.226,673.81
Year 3 PV (M)7,572.047,789.418,010.90
Year 4 PV (M)8,671.619,005.099,348.10
Year 5 PV (M)9,727.7410,197.6010,685.43
PV of Terminal Value (M)229,091.61240,156.82251,645.52
Equity Value (M)266,728.35278,986.34291,700.61
Shares Outstanding (M)1,144.841,144.841,144.84
Fair Value$232.98$243.69$254.80
Upside / Downside-2.67%1.80%6.44%

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