June 13, 2018

TMUS – Market expectations are for Uniform ROA stability following recent improvements, and management is confident in their adjusted EBITDA, 5G opportunity, and proposed merger with Sprint


 

  • T-Mobile US, Inc. (TMUS:USA)currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 23.3x Uniform P/E. At these levels, the market has somewhat bullish expectations for the firm, and management is confident in their adjusted EBITDA, 5G opportunity, and proposed merger with Sprint
  • Specifically, management is confident in their adjusted EBITDA of $3bn, up 12.4% year-over-year, and that the 600 megahertz gear they are deploying will be upgradable to 5G with a software update. Additionally, they are confident that discussions with the FTC regarding the proposed Sprint merger have been good so far, and that they were able to maintain their porting ratio from Q4. Moreover, they are confident in their efforts to integrate their network with the Sprint network while also building a 5G network in the process, and in Sprint’s 2.5 GHz spectrum
To read this Embedded Expectations Analysis report in its entirety, please log into the Valens Research web app. If you don't have an account, you can sign up for the 30-day trial.