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Telephone and Data SystemsTDS -1.54%65 Debt-to-EBITDA is 0.97 as of Mar. 2026, which is 64% below its 10-year median of 2.67. GuruFocus rates TDS with a GF Score™ of 65/100 and a GF Value™ of $31.37 (Fairly Valued). The stock has 5 warning signs investors should review. Among 302 Telecommunication Services companies, Telephone and Data Systems ranks better than 71.19% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Telephone and Data Systems's Debt-to-EBITDA or its related term are showing as below:
TDS'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -26.89 Med: 2.67 Max: 9.11
Current: 1.1
During the past 13 years, the highest Debt-to-EBITDA Ratio of Telephone and Data Systems was 9.11. The lowest was -26.89. And the median was 2.67.
TDS's Debt-to-EBITDA is ranked better than 71.19% of 302
companies
in the Telecommunication Services industry
Industry Median: 2
vs TDS: 1.10
Telephone and Data Systems (NYSE:TDS) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Telephone and Data Systems Debt-to-EBITDA Related Terms
Telephone and Data Systems Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TDS vs LBRDA, IRDM, LBTYA: Debt-to-EBITDA Comparison
For the Telecom Services subindustry, Telephone and Data Systems's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telephone and Data Systems Debt-to-EBITDA vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telephone and Data Systems's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Telephone and Data Systems's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Telephone and Data Systems (TDS) has a Debt-to-EBITDA of 0.97 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Telephone and Data Systems. This is 64% below median its historical median of 2.67. According to the industry distribution chart, Telephone and Data Systems ranks #87 out of 302 companies in the Telecommunication Services industry, placing it in the top 28.8%.
Is Telephone and Data Systems' Debt-to-EBITDA too high?
Telephone and Data Systems' current Debt-to-EBITDA of 0.97 is 64% below median its 10-year median of 2.67. The Telecommunication Services industry median Debt-to-EBITDA is 2.00. Telephone and Data Systems' value of 0.97 is 51.5% below this industry median. Based on the distribution chart, Telephone and Data Systems ranks #87 out of 302 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telephone and Data Systems has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' Debt-to-EBITDA compare to LBRDA and IRDM?
According to the Telecommunication Services industry distribution chart, Telephone and Data Systems ranks #87 out of 302 companies for Debt-to-EBITDA. This puts Telephone and Data Systems in the upper half of its industry. The industry median Debt-to-EBITDA is 2.00. Telephone and Data Systems' value of 0.97 is 51.5% below this benchmark. While the company's 10-year median is 2.67 vs. the industry median of 2.00, Telephone and Data Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Telecommunication Services company?
The median Debt-to-EBITDA among Telecommunication Services companies is 2.00, based on 302 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telephone and Data Systems's current Debt-to-EBITDA of 0.97 is 51.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Telephone and Data Systems. For the Telecommunication Services industry, the median Debt-to-EBITDA is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telephone and Data Systems's current Debt-to-EBITDA is 0.97, which is 64% below median its own 10-year median of 2.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telephone and Data Systems stock overvalued right now?
Based on GuruFocus' analysis, Telephone and Data Systems (TDS) is currently considered Fairly Valued. The stock's GF Value™ is $31.37, compared to a current price of $33.79 — trading 7.7% above its estimated fair value. The current Debt-to-EBITDA is 0.97, which is 64% below median its 10-year median of 2.67 and 51.5% below the Telecommunication Services industry median of 2.00. Telephone and Data Systems' overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Telephone and Data Systems (TDS), the current Debt-to-EBITDA is 0.97 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telephone and Data Systems (TDS) Overvalued in 2026?
Based on GuruFocus' analysis, Telephone and Data Systems stock appears to be overvalued.
The current stock price of $33.79 is trading 7.7% above its estimated GF Value™ of $31.37.
GuruFocus considers Telephone and Data Systems to be Fairly Valued.
Key valuation signals for TDS:
Debt-to-EBITDA: 0.97 (64% below median its 10-year median of 2.67)
GF Value™: $31.37 vs. price of $33.79 (7.7% above fair value)
Industry Position: 51.5% below the Telecommunication Services median (#87 of 302)
No single metric tells the full story. See the TDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telephone and Data Systems Inc is a diversified telecommunications operator that provides communications services to customers through broadband, video, voice, and wireless connections. The company has two reportable segments: TDS Telecom and Array. The majority of its revenue is generated from the TDS Telecom segment, which generates revenue by providing broadband, video, voice, and wireless services. The Array segment generates its revenue mainly by leasing tower space on Array-owned towers to customers.
65GF Score
Get the complete analysis for TDS
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