TMUS T-Mobile US, Inc.
$148.58
Platform & Compounding FCF 75%
Two-stage FCF DCF
Moderate · Conviction

Fair Value

Trading 16.4% below fair value

You pay $148.58
Bear $122.86
Fair $177.67
Bull $227.69
Bear $122.86 -17.3% 4% stage 1 growth, 11% discount
Fair $177.67 +19.6% 7% stage 1 growth, 11% discount
Bull $227.69 +53.2% 9% stage 1 growth, 11% discount

Adjust Assumptions

7.2%
11.0%
3.0%

Key Value Driver

FCF growth rate (7% base case)

Terminal Value % of EV 36%
Implied Market Multiple 15.8x
Market is pricing in (growth) 5.8% vs 7.2% base

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (54 analysts) $231.10
Divergence from AlphaVal 23%

Summary

Using a two-stage FCF DCF with 7% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $177.67 per share.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions