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Telephone And Data Systems Inc

Exchange: NYSESector: Communication ServicesIndustry: Telecom Services

Telephone and Data Systems, Inc., a telecommunications company, provides wireless, wireline, cable, and hosted and managed services in the United States. The company offers cellular services, such as postpaid national plans and prepaid service plans with voice, messaging, and data usage options; and shared data plans that include unlimited voice minutes and text messaging; business rate plans. It also offers wireless devices comprising handsets, modems, mobile hotspots, home phone, and tablets; and accessories, such as carrying cases, hands-free devices, batteries, battery chargers, memory cards, and other products. In addition, the company provides wireline and cable broadband services, such as fiber-based and digital, and other data services; Internet protocol television and satellite video services; voice services comprising local and long-distance telephone service, voice over Internet protocol, voice mail, caller ID, and call forwarding services; and network access services. Further, it offers cloud computing, colocation, hosted application management, and hosted and managed services; and planning, engineering, procurement, sales, installation, and management of information technology infrastructure hardware solutions, as well as printing and distribution services. As of December 31, 2014, the company served approximately 4.8 million wireless customers and 1.2 million wireline connections. Telephone and Data Systems, Inc. sells its products through retail sales direct sales, third-party retailers, and independent agents, as well as through Website and telesales. The company was founded in 1968 and is headquartered in Chicago, Illinois.

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Trading 52% above its estimated fair value of $21.38.

Current Price

$44.89

+1.70%

GoodMoat Value

$21.38

52.4% overvalued
Profile
Valuation (TTM)
Market Cap$5.18B
P/E-69.23
EV$5.38B
P/B1.08
Shares Out115.50M
P/Sales1.74
Revenue$2.98B
EV/EBITDA11.71

Telephone And Data Systems Inc (TDS) Valuation

TDS Fair Value Estimate

$21.3852.4% overvalued

Blended fair value estimate based on DCF, Graham Number, and earnings-based models.

TDS Valuation Metrics

FCF$199.36M
FCF Growth Rate22.50%
EPS Growth (CAGR)22.50%
WACC10.00%

TDS Valuation & Fair Value Analysis

Telephone And Data Systems Inc (TDS) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.

The GoodMoat Fair Value target for Telephone And Data Systems Inc is $21.38. The current stock price is $44.89, suggesting the stock is 109.9% overvalued.

The price-to-earnings (P/E) ratio is -69.23. Price-to-book ratio is 1.08. Price-to-sales ratio is 1.74. Enterprise value to EBITDA is 11.71. PEG ratio is 0.16.

GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Telephone And Data Systems Inc's intrinsic value.