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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
T-Mobile US's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -0.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for T-Mobile US's Degree of Operating Leverage or its related term are showing as below:
XSWX:TMUS's Degree of Operating Leverage is ranked better than 67.04% of 358
companies
in the Telecommunication Services industry
Industry Median: 0.91
vs XSWX:TMUS: -0.85
T-Mobile US (XSWX:TMUS) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
T-Mobile US Degree of Operating Leverage Related Terms
T-Mobile US Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for T-Mobile US's Degree of Operating Leverage can be seen below:
* 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.
XSWX:TMUS vs VZ, T, CMCSA: Degree of Operating Leverage Comparison
For the Telecom Services subindustry, T-Mobile US's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.
T-Mobile US Degree of Operating Leverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, T-Mobile US's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where T-Mobile US's Degree of Operating Leverage 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of -0.85 mean?
T-Mobile US (XSWX:TMUS) has a Degree of Operating Leverage of -0.85 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for T-Mobile US and its competitors. According to the industry distribution chart, T-Mobile US ranks #118 out of 358 companies in the Telecommunication Services industry, placing it in the top 33%.
Is T-Mobile US's Degree of Operating Leverage too high?
T-Mobile US's current Degree of Operating Leverage is -0.85. Based on the distribution chart, T-Mobile US ranks #118 out of 358 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, T-Mobile US has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does T-Mobile US's Degree of Operating Leverage compare to VZ and T?
According to the Telecommunication Services industry distribution chart, T-Mobile US ranks #118 out of 358 companies for Degree of Operating Leverage. This puts T-Mobile US in the upper half of its industry. The industry median Degree of Operating Leverage is 0.91. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Telecommunication Services company?
The median Degree of Operating Leverage among Telecommunication Services companies is 0.91, based on 358 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for T-Mobile US and its competitors. For the Telecommunication Services industry, the median Degree of Operating Leverage is 0.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. T-Mobile US's current Degree of Operating Leverage is -0.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is T-Mobile US stock overvalued right now?
T-Mobile US (XSWX:TMUS) has a current Degree of Operating Leverage of -0.85. The stock's GF Value™ is CHF185.57, compared to a current price of CHF147.50 — trading 20.5% below its estimated fair value. The current Degree of Operating Leverage is -0.85. T-Mobile US's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For T-Mobile US (XSWX:TMUS), the current Degree of Operating Leverage is -0.85 as of Jun. 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 T-Mobile US (XSWX:TMUS) Overvalued in 2026?
Based on GuruFocus' analysis, T-Mobile US stock appears to be undervalued.
The current stock price of CHF147.50 is trading 20.5% below its estimated GF Value™ of CHF185.57.
Key valuation signals for XSWX:TMUS:
Degree of Operating Leverage: -0.85
GF Value™: CHF185.57 vs. price of CHF147.50 (20.5% below fair value)
No single metric tells the full story. See the XSWX:TMUS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deutsche Telekom merged its T-Mobile USA unit with prepaid specialist MetroPCS in 2013, and that firm merged with Sprint in 2020, creating the second-largest wireless carrier in the US. T-Mobile now serves about 86 million postpaid and 26 million prepaid phone customers, equal to around 30% of the US retail wireless market. The firm entered the fixed-wireless broadband market aggressively in 2021 and now serves 8 million residential and business customers with its wireless network. It also serves 1 million fiber broadband customers through joint ventures with fiber network owners. T-Mobile owns a stake in these firms, which provide wholesale access to their networks. In addition, T-Mobile provides wholesale services to wireless resellers.
76GF Score
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