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How T-Mobile’s Current Valuation Stacks Up against Its Peers’

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T-Mobile’s forward EV-to-EBITDA ratio

On June 14, T-Mobile’s (TMUS) forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple was 6.97x, higher than those of many of its competitors, including Sprint (S) and AT&T (T). Sprint’s and AT&T’s forward EV-to-EBITDA multiples were 5.25x and 6.85x, respectively. The PE multiple is calculated based on analysts’ consensus estimates for a company’s EBITDA for the next 12 months.

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T-Mobile’s forward PE

On June 14, T-Mobile’s 12-month forward PE multiple was 17.37x, while AT&T’s 12-month forward PE multiple was 8.98x. The forward PE multiple is calculated based on a company’s future earnings estimates.

Analysts’ earnings estimates

For 2019, T-Mobile’s adjusted EPS are expected to be $3.96, reflecting a ~17.9% rise on a YoY (year-over-year) basis. AT&T’s adjusted EPS are expected to be $3.56 in 2019, reflecting a ~1.1% rise on a YoY basis. Analysts expect Sprint to post adjusted EPS of -$0.17 in fiscal 2019, which ends in March 2020.

T-Mobile’s scale

On June 14, T-Mobile’s market cap was $64.3 billion. T-Mobile is the third-largest US wireless carrier in terms of market cap. Sprint’s market cap was $29.0 billion, while AT&T’s market cap was $235.7 billion on the day.

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