Using the PEG framework with analyst consensus forward EPS growth of 15.8% plus 1.7% dividend yield, T-Mobile US, Inc. has a fair value of $164.01 based on NTM EPS (FY2026) of $10.38. The current PEG ratio is 1.29.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 14.1% |
| Dividend Yield | +1.7% |
| Adjusted Growth (clamped 8–25%) | 15.8% |
| Fair P/E | 15.8x |
| NTM EPS (FY2026) | $10.38 |
| Fair Value | $164.01 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $9.72 | — | — |
| FY2026E | $10.38 | +6.8% | 20 |
| FY2027E | $13.38 | +28.9% | 18 |
| FY2028E | $16.50 | +23.3% | 16 |
| FY2029E | $17.99 | +9.0% | 15 |
| FY2030E | $18.77 | +4.3% | 15 |
5Y Forward EPS CAGR: 14.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $3.0B | $2.41 | — |
| FY2022 | $2.6B | $2.06 | -14.5% |
| FY2023 | $8.3B | $6.93 | +236.4% |
| FY2024 | $11.3B | $9.66 | +39.4% |
| FY2025 | $11.0B | $9.72 | +0.6% |
4Y Historical EPS CAGR: 41.7%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.