Latest Ratios: P/E Ratio 15.1x · EV/EBITDA 8.5x · ROE 18.2%. (2000–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $157.2B | $229.7B | $259.0B | $192.4B | $175.8B | $145.5B | $155.7B | $67.7B | $54.6B | $55.4B | $47.9B |
| Enterprise Value | $273.9B | $346.3B | $368.0B | $301.1B | $283.0B | $247.7B | $252.6B | $108.5B | $69.8B | $85.1B | $67.2B |
| P/E Ratio → | 15.08 | 20.89 | 22.85 | 23.14 | 67.96 | 48.12 | 50.89 | 19.51 | 18.93 | 12.21 | 34.03 |
| P/S Ratio | 1.78 | 2.60 | 3.18 | 2.45 | 2.21 | 1.82 | 2.28 | 1.50 | 1.26 | 1.36 | 1.28 |
| P/B Ratio | 2.80 | 3.88 | 4.19 | 2.97 | 2.52 | 2.11 | 2.38 | 2.35 | 2.21 | 2.45 | 2.63 |
| P/FCF | 15.20 | 22.20 | 25.94 | 24.84 | — | — | — | — | — | — | — |
| P/OCF | 5.62 | 8.22 | 11.62 | 10.37 | 10.47 | 10.46 | 18.02 | 9.92 | 14.00 | 14.45 | 7.81 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.92 | 4.52 | 3.83 | 3.56 | 3.09 | 3.69 | 2.41 | 1.61 | 2.09 | 1.79 |
| EV / EBITDA | 8.49 | 10.74 | 11.90 | 11.12 | 14.02 | 10.64 | 12.15 | 8.80 | 5.91 | 7.82 | 6.53 |
| EV / EBIT | 14.61 | 19.46 | 20.30 | 21.01 | 43.48 | 37.01 | 40.54 | 18.91 | 13.23 | 17.60 | 16.57 |
| EV / FCF | — | 33.48 | 36.86 | 38.87 | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 47.6% | 47.6% | 63.6% | 61.6% | 54.5% | 54.3% | 58.7% | 58.8% | 57.6% | 56.4% | 55.9% |
| Operating Margin | 21.2% | 21.2% | 22.1% | 18.2% | 8.2% | 8.6% | 9.7% | 12.7% | 12.3% | 12.0% | 10.8% |
| Net Profit Margin | 12.4% | 12.4% | 13.9% | 10.6% | 3.3% | 3.8% | 4.5% | 7.7% | 6.7% | 11.2% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.2% | 18.2% | 17.9% | 12.4% | 3.7% | 4.5% | 6.5% | 13.0% | 12.2% | 22.2% | 8.4% |
| ROA | 5.1% | 5.1% | 5.5% | 4.0% | 1.2% | 1.5% | 2.1% | 4.4% | 4.0% | 6.6% | 2.3% |
| ROIC | 8.1% | 8.1% | 7.8% | 6.1% | 2.8% | 3.1% | 4.3% | 7.8% | 8.6% | 8.2% | 8.3% |
| ROCE | 9.8% | 9.8% | 9.6% | 7.6% | 3.5% | 3.8% | 5.2% | 8.4% | 8.8% | 8.4% | 7.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.07 | 2.07 | 1.85 | 1.76 | 1.60 | 1.57 | 1.64 | 1.47 | 0.66 | 1.37 | 1.36 |
| Debt / EBITDA | 3.79 | 3.79 | 3.70 | 4.20 | 5.54 | 4.68 | 5.16 | 3.43 | 1.39 | 2.84 | 2.41 |
| Net Debt / Equity | — | 1.97 | 1.77 | 1.68 | 1.54 | 1.48 | 1.48 | 1.42 | 0.61 | 1.32 | 1.06 |
| Net Debt / EBITDA | 3.62 | 3.62 | 3.52 | 4.01 | 5.31 | 4.39 | 4.66 | 3.31 | 1.29 | 2.73 | 1.88 |
| Debt / FCF | — | 11.28 | 10.92 | 14.03 | — | — | — | — | — | — | — |
| Interest Coverage | 5.06 | 5.06 | 5.31 | 4.30 | 1.94 | 2.00 | 2.31 | 5.06 | 3.89 | 2.89 | 2.35 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.00 | 1.00 | 0.91 | 0.91 | 0.77 | 0.89 | 1.10 | 0.74 | 0.81 | 0.77 | 1.58 |
| Quick Ratio | 0.90 | 0.90 | 0.83 | 0.83 | 0.69 | 0.78 | 0.98 | 0.67 | 0.70 | 0.64 | 1.45 |
| Cash Ratio | 0.23 | 0.23 | 0.27 | 0.25 | 0.18 | 0.28 | 0.48 | 0.12 | 0.12 | 0.11 | 0.61 |
| Asset Turnover | — | 0.40 | 0.39 | 0.38 | 0.38 | 0.39 | 0.34 | 0.52 | 0.60 | 0.58 | 0.57 |
| Inventory Turnover | 19.23 | 19.23 | 18.45 | 17.99 | 19.22 | 14.26 | 11.19 | 19.21 | 16.93 | 11.31 | 14.90 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 1.8% | 1.3% | 0.4% | — | — | — | — | — | 0.1% | 0.1% |
| Payout Ratio | 37.5% | 37.5% | 29.1% | 9.0% | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.6% | 4.8% | 4.4% | 4.3% | 1.5% | 2.1% | 2.0% | 5.1% | 5.3% | 8.2% | 2.9% |
| FCF Yield | 6.6% | 4.5% | 3.9% | 4.0% | — | — | — | — | — | — | — |
| Buyback Yield | 6.3% | 4.3% | 4.3% | 6.8% | 1.7% | 0.2% | 12.5% | 0.2% | 2.0% | 0.8% | 0.0% |
| Total Shareholder Yield | 8.8% | 6.1% | 5.6% | 7.2% | 1.7% | 0.2% | 12.5% | 0.2% | 2.0% | 0.9% | 0.1% |
| Shares Outstanding | — | $1.1B | $1.2B | $1.2B | $1.3B | $1.3B | $1.2B | $863M | $858M | $872M | $833M |
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying TMUS stock.
T-Mobile US, Inc.'s current P/E ratio is 15.1x. The historical average is 34.5x. This places it at the 17th percentile of its historical range.
T-Mobile US, Inc.'s current EV/EBITDA is 8.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.6x.
T-Mobile US, Inc.'s return on equity (ROE) is 18.2%. The historical average is -0.6%.
Based on historical data, T-Mobile US, Inc. is trading at a P/E of 15.1x. This is at the 17th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
T-Mobile US, Inc.'s current dividend yield is 2.49% with a payout ratio of 37.5%.
T-Mobile US, Inc. has 47.6% gross margin and 21.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
T-Mobile US, Inc.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Elevated leverage and rising rates
Metrics are mathematically derived from official filings.
Premium Multiple Anchored to Growth
TMUS trades at 18.8x trailing earnings versus Verizon's 12.1x and AT&T's 8.3x, reflecting its growth premium. According to the latest market data, the forward P/E of 16.6x suggests continued earnings expansion.
The valuation gap versus peers is justified by TMUS's superior revenue growth and margin trajectory, but it also embeds expectations of sustained market share gains. With a dividend yield of 2.0%, TMUS offers less income than peers, making its total return more dependent on capital appreciation. Investors should monitor whether the growth premium erodes as the wireless market matures and the company pivots to fiber.
ROE Recovery Signals Operational Efficiency
TMUS's ROE improved to 5.8% in 2026Q2 from 4.7% a year earlier, as reported in the latest quarterly data. This sequential rebound from 3.5% in 2025Q4 suggests merger synergies are still being realized.
The quarterly ROE volatility, dipping to 3.5% in 2025Q4, indicates that earnings are sensitive to one-time items and promotional timing. The upward trend in 2026 suggests improving operational efficiency, but the absolute level remains below the double-digit returns typical of mature utilities. This may reflect the heavy capital intensity of the wireless industry and the dilutive impact of equipment installment plans.
Margin Expansion Faces Promotional Pressure
Operating margin expanded to 24.1% in 2026Q2 from 23.4% a year earlier, per the income statement data. However, the 15.9% margin in 2025Q4 highlights volatility from device upgrade cycles and promotional intensity.
The gross margin of 47.64% reflects the pass-through nature of equipment sales, which dilute overall profitability. The recent escalation in premium-tier promotions, such as Go5G Next, may pressure future margins as acquisition costs rise. The company's ability to maintain operating margin expansion will depend on balancing subscriber growth with disciplined cost management.
Leverage Creeps Higher Despite Debt Reduction
Debt-to-capital rose to 0.67 in 2026Q2 from 0.65 in 2024Q1, as shown in the quarterly ratio data. Interest coverage improved to 5.1x, but the elevated leverage remains a key risk in a rising-rate environment.
The reported debt-to-equity of 2.07% appears inconsistent with the actual leverage, which is likely much higher given the company's history of spectrum acquisitions. The balance sheet data indicates total debt of $116B against equity of $56.3B, implying a debt-to-equity of approximately 2.06. This leverage, combined with a shrinking equity base from buybacks, suggests limited financial flexibility. Investors should monitor FFO-to-debt, which stood at 8.46% in 2026Q2, as a measure of credit quality.
Dividend Initiation Signals Maturity
TMUS initiated a dividend with a payout ratio of 34% in 2026Q2, as per the latest data. The dividend yield of 2.0% is below peers, but the low payout suggests room for growth.
The dividend is well-covered by operating cash flow, with OCF-to-dividend coverage at 6.8x in 2026Q2. However, the company's aggressive share buybacks and negative free cash flow in 2025Q3 indicate that capital returns are being funded by balance sheet strength rather than organic cash generation. As the company pivots to fiber partnerships, the dividend may compete with capex for cash, warranting close monitoring.
Misapplied Debt-to-Equity Metric
The commonly cited debt-to-equity ratio of 2.07% for TMUS is misleading, as it appears to be a data error. Based on the balance sheet data, the actual debt-to-equity is approximately 2.06, reflecting significant leverage.
Standard debt-to-equity ratios for telecoms often ignore off-balance-sheet obligations like spectrum leases and operating leases. For TMUS, the true leverage is better captured by debt-to-capital (0.67) and FFO-to-debt (8.46%). Investors should use these metrics instead of the raw debt-to-equity figure to assess credit risk. The elevated leverage, combined with rising interest rates, poses a risk to future free cash flow and capital returns.