TDS (Telephone and Data Systems) EBIT: $481 Mil (TTM As of Mar. 2026)


TDS Telephone and Data Systems Inc TDS
64 GF Score
Price $37.44
GF Value $32.86
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Telephone and Data Systems EBIT?

Telephone and Data Systems TDS -0.29% 64 EBIT is $481 Mil as of Mar. 2026. GuruFocus rates TDS with a GF Score™ of 64/100 and a GF Value™ of $32.86 (Modestly Overvalued). The stock has 5 warning signs investors should review.

Telephone and Data Systems's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $239 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $481 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Telephone and Data Systems's annualized ROC % for the quarter that ended in Mar. 2026 was -0.15%. Telephone and Data Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 27.26%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Telephone and Data Systems's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 8.65%.


Telephone and Data Systems  (NYSE:TDS) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Telephone and Data Systems's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-14.752 * ( 1 - 23.27% )/( (7749.766 + 6895.952)/ 2 )
=-11.3192096/7322.859
=-0.15 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=8398.303 - 165.379 - ( 765.952 - max(0, 440.311 - 923.469+765.952))
=7749.766

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=8211.327 - 238.971 - ( 1366.604 - max(0, 443.675 - 1520.079+1366.604))
=6895.952

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Telephone and Data Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=956.624/( ( (3480.536 + max(-293.876, 0)) + (3538.559 + max(-295.839, 0)) )/ 2 )
=956.624/( ( 3480.536 + 3538.559 )/ 2 )
=956.624/3509.5475
=27.26 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(68.737 + 4.062 + 42.182) - (165.379 + 125.14 + 118.338)
=-293.876

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(63.433 + 3.746 + 46.845) - (238.971 + 84.165 + 86.727)
=-295.839

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Telephone and Data Systems's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=481.058/5563.428
=8.65 %

* 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.


Telephone and Data Systems EBIT Related Terms


Telephone and Data Systems EBIT Historical Data

* Premium members only.

The historical data trend for Telephone and Data Systems's EBIT 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.

Telephone and Data Systems EBIT Chart

Telephone and Data Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 453.00 299.00 -501.30 5.19 201.63

Telephone and Data Systems Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.58 91.00 53.29 97.62 239.16

TDS vs AD, LBTYA, LBRDA: EBIT Comparison

For the Telecom Services subindustry, Telephone and Data Systems's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Telephone and Data Systems's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Telephone and Data Systems's EV-to-EBIT falls into.


TDS
64GF Score
Telephone and Data Systems Inc TDS
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Telephone and Data Systems EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $481 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $481 Mil mean?
Telephone and Data Systems (TDS) has a EBIT of $481 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Telephone and Data Systems.
Is Telephone and Data Systems' EBIT too high?
Telephone and Data Systems' current EBIT is $481 Mil. Overall, Telephone and Data Systems has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' EBIT compare to AD and LBTYA?
Telephone and Data Systems' EBIT of $481 Mil can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Telecommunication Services company?
A good EBIT depends on the Telecommunication Services industry context. However, EBIT 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 EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Telephone and Data Systems. Telephone and Data Systems's current EBIT is $481 Mil. 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 Modestly Overvalued. The stock's GF Value™ is $32.86, compared to a current price of $37.44 — trading 13.9% above its estimated fair value. The current EBIT is $481 Mil. Telephone and Data Systems' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Telephone and Data Systems (TDS), the current EBIT is $481 Mil 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 $37.44 is trading 13.9% above its estimated GF Value™ of $32.86. GuruFocus considers Telephone and Data Systems to be Modestly Overvalued.

Key valuation signals for TDS:

  • EBIT: $481 Mil
  • GF Value™: $32.86 vs. price of $37.44 (13.9% above fair value)
  • GF Score™: 64/100 with 5 warning signs

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 Business Description

Other Exchanges TDSpU.PFD:USA
Address 30 North LaSalle Street, Suite 4000, Chicago, IL, USA, 60602
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.
64GF Score

Get the complete analysis for TDS

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$37.44
Price
$32.86
GF Value