T-Mobile US (TMUS), mcap=$180bn, price $144 vs $134

Pitch:
– Dominant wireless growth position with the best network and best value in 5G.
– Two years ahead of $VZ and $T in deployment.
– From ’24 onwards set to generate $15-20/share in FCF taking into account synergies from the Sprint merger.
– A massive $60bn+ capital return program (70% of free float) will materially shrink the share count.

Valuation:
– Set to generate $15-20/share in FCF beginning in 2024.
– At a reasonable multiple this translates into $150-$200 stock.

Exp. gain: +50% to $200/share in 18 months.

Full $TMUS write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/T-MOBILE_US_INC/4465983848

Published on: August 27, 2022  •  Published by:
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