T-Mobile US (TMUS) Stock Forecast & Price Target

T-Mobile US has demonstrated robust financial performance, with core EBITDA increasing 6.4% year-over-year to $8.3 billion, exceeding consensus expectations. The company has also raised its guidance for 2025, increasing the lower end for EBITDA, operating cash flow, and free cash flow by $100 million, alongside upward revisions for postpaid phone net additions. Furthermore, T-Mobile’s strategic entry into the fixed-wireless broadband market and its strong customer preference for top-tier plans—highlighted by the successful launch of T-Satellite—underscore its ongoing growth potential and market strength.

T-Mobile US trades at an FY26E EV/EBITDA multiple of 9.9x, reflecting concerns about its financial performance as this marks its lowest valuation level in over a year. The company faces multiple risks, including potential revenue and cash flow shortfalls driven by economic, competitive, or operational challenges, which could significantly impact its financial health. Furthermore, a worst-case scenario involving a decline to a ~5x EBITDA multiple may arise due to increasing churn, stagnant customer growth, decreased Average Revenue Per User (ARPU), and margin pressures.