T-Mobile US

Methodology

T-Mobile's fair value calculation works reasonably well now that the Sprint integration is complete and earnings have normalized, capturing the company's subscriber growth and network investment benefits. However, investors should consider that heavy spectrum acquisition costs and network buildout create lumpy capex that can distort EPS, making free cash flow-based valuation more appropriate. The method is most reliable when applied to normalized post-integration earnings rather than transition period results.

Methodology

T-Mobile typically commands moderate to premium PEG ratios reflecting its position as the growth leader among U.S. wireless carriers, with subscriber additions outpacing AT&T and Verizon. The PEG framework works well for comparing T-Mobile to peers, though investors should normalize for integration benefits and one-time synergies that artificially boost near-term growth. As the company matures and growth moderates, the PEG may compress toward levels more typical of established telecom operators.

Methodology

T-Mobile currently pays no dividend as management prioritizes debt reduction from the Sprint merger and continued network investment over shareholder distributions. PEGY therefore equals PEG with no yield component, and the metric becomes relevant only if management initiates a dividend in the future. For now, investors should focus on subscriber growth, free cash flow generation, and debt paydown rather than income returns.