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DCF Valuation
Base-case fair value
$604.47
Intrinsic $805.96 · 25% MOS
Current price: $178.10
Base-case summary
Our base-case DCF for T-Mobile US, Inc. (TMUS) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 62.8% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $18.2B in trailing free cash flow, this produces an intrinsic value of $805.96 per share. A 25% safety margin gives a fair value of $604.47, suggesting the stock is currently 239% undervalued against the $178.10 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$18.2B
Cash & equivalents
$3.5B
Total debt
$33.9B
Shares outstanding
1.1B