Stock Analysis on Net

T-Mobile US Inc. (NASDAQ:TMUS)

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

T-Mobile US Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income 11,339 8,317 2,590 3,024 3,064
Less: Income from discontinued operations, net of tax 320
Add: Income tax expense 3,373 2,682 556 327 786
Earnings before tax (EBT) 14,712 10,999 3,146 3,351 3,530
Add: Interest expense, net 3,411 3,335 3,364 3,342 2,701
Earnings before interest and tax (EBIT) 18,123 14,334 6,510 6,693 6,231
Add: Depreciation and amortization 12,919 12,818 13,651 16,383 14,151
Earnings before interest, tax, depreciation and amortization (EBITDA) 31,042 27,152 20,161 23,076 20,382

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. T-Mobile US Inc. EBITDA increased from 2022 to 2023 and from 2023 to 2024.

Enterprise Value to EBITDA Ratio, Current

T-Mobile US Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 378,018
Earnings before interest, tax, depreciation and amortization (EBITDA) 31,042
Valuation Ratio
EV/EBITDA 12.18
Benchmarks
EV/EBITDA, Competitors1
AT&T Inc. 7.47
Verizon Communications Inc. 7.05
EV/EBITDA, Sector
Telecommunication Services 8.50
EV/EBITDA, Industry
Communication Services 12.99

Based on: 10-K (reporting date: 2024-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

T-Mobile US Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 341,174 264,390 249,831 225,649 211,414
Earnings before interest, tax, depreciation and amortization (EBITDA)2 31,042 27,152 20,161 23,076 20,382
Valuation Ratio
EV/EBITDA3 10.99 9.74 12.39 9.78 10.37
Benchmarks
EV/EBITDA, Competitors4
AT&T Inc. 7.18 5.84 13.24 5.09 8.75
Verizon Communications Inc. 6.56 7.90 6.48 7.60 7.61
EV/EBITDA, Sector
Telecommunication Services 7.90 7.51 9.38 6.75 8.58
EV/EBITDA, Industry
Communication Services 13.75 12.91 11.74 11.57 14.51

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 See details »

2 See details »

3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 341,174 ÷ 31,042 = 10.99

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. T-Mobile US Inc. EV/EBITDA ratio decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.