Stock Analysis & Valuation T-Mobile US, Inc. (TMUS.SW)

• Previous Close: CHF74.29
• Sector Valuation Confidence Level: High

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	57.00	-23
Graham Formula	40.00	-46

Strategic Investment Analysis

Company Overview

T-Mobile US, Inc. (TMUS.SW) is a leading telecommunications provider in the United States, offering mobile communications services under the T-Mobile and Metro by T-Mobile brands. The company serves over 108 million customers across postpaid, prepaid, and wholesale markets, providing voice, messaging, data services, and a range of wireless devices, including smartphones, wearables, and tablets. Headquartered in Bellevue, Washington, T-Mobile operates an extensive network with approximately 102,000 macro cell sites and 41,000 small cell/distributed antenna system sites as of 2021. The company distributes its products through owned retail stores, e-commerce platforms, and third-party dealers. As a key player in the competitive U.S. telecom sector, T-Mobile has differentiated itself through aggressive pricing, network expansion, and innovative customer plans, including its industry-disrupting 'Un-carrier' initiatives. With a market capitalization exceeding CHF 184 billion, T-Mobile is well-positioned in the Communication Services sector, benefiting from the growing demand for 5G and wireless connectivity.

Investment Summary

T-Mobile US presents a compelling investment case due to its strong market position, robust revenue growth (CHF 78.6 billion in FY 2023), and solid profitability (net income of CHF 8.3 billion). The company's low beta (0.497) suggests relative stability compared to broader market volatility. However, investors should note its high total debt (CHF 113.1 billion), which could pose risks in a rising interest rate environment. T-Mobile's lack of a dividend (despite a reported CHF 2.31 per share figure) may deter income-focused investors, but its strong operating cash flow (CHF 18.6 billion) and continued 5G network investments position it well for long-term growth in the evolving telecom landscape.

Competitive Analysis

T-Mobile US has carved out a strong competitive position in the U.S. telecom market through its 'Un-carrier' strategy, which eliminated traditional pain points like contracts and overage fees. The company's merger with Sprint significantly enhanced its spectrum holdings and network capabilities, allowing it to compete more effectively with larger rivals Verizon and AT&T. T-Mobile's mid-band 5G spectrum advantage provides faster speeds and better coverage than competitors' high-band or low-band alternatives, creating a technical edge in the 5G rollout race. The company maintains cost advantages through its predominantly prepaid customer base and leaner operational structure compared to legacy carriers. However, it faces intense competition in customer retention as rivals match many of its innovative offerings. T-Mobile's competitive pricing strategy continues to drive subscriber growth but pressures margins in the increasingly saturated U.S. wireless market. The company's nationwide retail presence and digital sales channels provide strong distribution advantages against smaller MVNOs and regional carriers.

Major Competitors

• Verizon Communications Inc. (VZ): Verizon leads in network quality and reliability but struggles with higher pricing. Its extensive fiber and enterprise business provide diversification that T-Mobile lacks. However, Verizon's slower 5G rollout and premium pricing have led to recent subscriber losses to more value-oriented competitors like T-Mobile.
• AT&T Inc. (T): AT&T combines wireless with strong media assets (Warner Bros. Discovery) and fiber broadband. While its wireless business faces similar challenges as Verizon, AT&T's bundled offerings provide differentiation. The company carries significant debt from acquisitions, limiting flexibility compared to T-Mobile's cleaner balance sheet post-Sprint merger.
• DISH Network Corporation (DISCA): DISH is attempting to transition from satellite TV to wireless but lacks T-Mobile's scale or network infrastructure. Its emerging 5G network could eventually pose a threat but currently suffers from limited coverage. DISH's financial position is weaker, making it difficult to compete on network investment or pricing.
• Charter Communications, Inc. (CHTR): Charter competes primarily in broadband but is expanding into mobile through its Spectrum Mobile MVNO. Its strength in cable internet provides a bundling advantage in certain markets, but it lacks T-Mobile's nationwide wireless network infrastructure and spectrum assets.