
T-Mobile US (TMUS) Stock Forecast & Price Target
T-Mobile US (TMUS) Analyst Ratings
Bulls say
T-Mobile US has demonstrated strong financial performance, highlighted by a significant increase in Return on Capital (ROC) from 6.40% to 6.91% over the last twelve months (LTM), which reflects improved efficiency in generating profits from capital investments. The company reported a 7.30% year-over-year increase in net sales revenue, rising from $80.01 billion to $85.85 billion, with projections indicating a further growth rate of 7.98% for the next twelve months (NTM). Additionally, T-Mobile's economic profit surged by 27.86%, marking a substantial improvement in profitability, while postpaid services revenue and service revenues both grew by industry-leading rates of 12% and 9%, respectively, underscoring the firm's competitive strength in the wireless market.
Bears say
T-Mobile is currently trading at a low FY26E EV/EBITDA of 9.9x, reflecting a decline in market sentiment amid challenges in prepaid and wholesale revenue performance. Financial risks include potential shortfalls in revenue and cash flow generation due to economic and competitive pressures, alongside merger-related expenses and higher cash taxes impacting 2026 EPS and free cash flow guidance. Additionally, T-Mobile's structural challenges in competing in a converged market, particularly due to its underinvestment in fiber infrastructure compared to peers, could lead to unfavorable trends in customer growth and pricing, ultimately impacting its long-term financial stability.
This aggregate rating is based on analysts' research of T-Mobile US and is not a guaranteed prediction by Public.com or investment advice.
T-Mobile US (TMUS) Analyst Forecast & Price Prediction
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