T-Mobile USXSWX:TMUS 76 Interest Coverage is 4.36 as of Mar. 2026, which is 30% above its 10-year median of 3.35. GuruFocus rates XSWX:TMUS with a GF Score™ of 76/100 and a GF Value™ of CHF183.00. The stock has 2 warning signs investors should review. Among 286 Telecommunication Services companies, T-Mobile US ranks worse than 50.35% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. T-Mobile US's
Operating Income
for the
three
months ended in Mar. 2026 was CHF3,540 Mil. T-Mobile US's Interest Expense for the
three
months ended in Mar. 2026 was CHF-812 Mil.
T-Mobile US's interest coverage for the quarter that ended in Mar. 2026 was 4.36.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for T-Mobile US's Interest Coverage or its related term are showing as below:
XSWX:TMUS'
s Interest Coverage Range Over the Past 10 Years
Min: 1.92 Med: 3.35 Max: 5.28
Current: 4.69
XSWX:TMUS's Interest Coverage is ranked worse than 50.35% of 286
companies
in the Telecommunication Services industry
Industry Median: 4.715
vs XSWX:TMUS: 4.69
T-Mobile US (XSWX:TMUS) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
T-Mobile US Interest Coverage Related Terms
T-Mobile US Interest Coverage Historical Data
* Premium members only.
The historical data trend for T-Mobile US's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XSWX:TMUS vs VZ, T, CMCSA: Interest Coverage Comparison
For the Telecom Services subindustry, T-Mobile US's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, T-Mobile US's Interest Coverage distribution charts can be found below:
* The bar in red indicates where T-Mobile US's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
T-Mobile US (XSWX:TMUS) has a Interest Coverage of 4.36 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on T-Mobile US and its competitors. This is 30% above median its historical median of 3.35. Over the past decade, T-Mobile US's Interest Coverage has ranged from 1.92 to 5.28. According to the industry distribution chart, T-Mobile US ranks #144 out of 286 companies in the Telecommunication Services industry, placing it in the top 50.3%.
Is T-Mobile US's Interest Coverage too high?
T-Mobile US's current Interest Coverage of 4.36 is 30% above median its 10-year median of 3.35. Over the past 10 years, this metric has ranged from a low of 1.92 to a high of 5.28. The Telecommunication Services industry median Interest Coverage is 4.72. T-Mobile US's value of 4.36 is 7.5% below this industry median. Based on the distribution chart, T-Mobile US ranks #144 out of 286 companies in the Telecommunication Services industry, which is below 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 Interest Coverage compare to VZ and T?
According to the Telecommunication Services industry distribution chart, T-Mobile US ranks #144 out of 286 companies for Interest Coverage. This places T-Mobile US in the lower half of its industry. The industry median Interest Coverage is 4.72. T-Mobile US's value of 4.36 is 7.5% below this benchmark. Historically, T-Mobile US's own Interest Coverage has ranged from 1.92 to 5.28 over the past decade. While the company's 10-year median is 3.35 vs. the industry median of 4.72, T-Mobile US 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 Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.72, based on 286 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. T-Mobile US's current Interest Coverage of 4.36 is 7.5% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on T-Mobile US and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. T-Mobile US's current Interest Coverage is 4.36, which is 30% above median its own 10-year median of 3.35. 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 Interest Coverage of 4.36. The stock's GF Value™ is CHF183.00, compared to a current price of CHF147.84 — trading 19.2% below its estimated fair value. The current Interest Coverage is 4.36, which is 30% above median its 10-year median of 3.35 and 7.5% below the Telecommunication Services industry median of 4.72. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For T-Mobile US (XSWX:TMUS), the current Interest Coverage is 4.36 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 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 CHF147.84 is trading 19.2% below its estimated GF Value™ of CHF183.00.
Key valuation signals for XSWX:TMUS:
Interest Coverage: 4.36 (30% above median its 10-year median of 3.35)
GF Value™: CHF183.00 vs. price of CHF147.84 (19.2% below fair value)
Industry Position: 7.5% below the Telecommunication Services median (#144 of 286)
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
Get the complete analysis for XSWX:TMUS
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:TMUS has been successfully added to your 
