TacticScaleWhat T-Mobile US Does & How It Makes Money (TMUS)
Updated October 2026 · reflects T-Mobile US's latest reported financials
Major U.S. wireless carrier offering mobile phone and data service. It earns recurring monthly fees from postpaid, prepaid and wholesale wireless service customers.
How T-Mobile US makes money
It earns recurring monthly fees from postpaid, prepaid and wholesale wireless service customers. It also makes money selling devices and accessories, often financed through equipment installment plans, and from reinsurance on device insurance and extended warranties.
What T-Mobile US does
T-Mobile US is one of the main wireless carriers in the United States. It also covers Puerto Rico and the U.S. Virgin Islands. It sells voice, messaging and data service to postpaid, prepaid and wholesale customers. Its three brands are T-Mobile, Metro by T-Mobile and Mint Mobile, which together cover both the mainstream and the budget market. Beyond service plans, it sells smartphones, tablets, wearables and home broadband gateways. Customers can pay for devices through installment plans, and the company also earns reinsurance income on device insurance and extended warranties. The company sells through its own stores, websites and apps, and through national retailers, dealers and third-party distributors. It holds 700 MHz spectrum licenses. T-Mobile US was founded in 1994, is based in Bellevue, Washington, and is a subsidiary of Deutsche Telekom AG.
Products & services
- T-Mobile postpaid wireless plans
- Metro by T-Mobile prepaid service
- Mint Mobile
- Home broadband gateways
- Smartphones and device financing (equipment installment plans)
- Device insurance and extended warranty reinsurance
What is T-Mobile US worth?
On an owner-earnings DCF, T-Mobile US's most-likely value is about $229 versus a recent price near $149 (54% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$123) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 7.3× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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