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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Telephone and Data Systems's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $-25.87.
The industry rank for Telephone and Data Systems's Net-Net Working Capital or its related term are showing as below:
TDS's Price-to-Net-Net-Working-Capital is not ranked *
in the Telecommunication Services industry.
Industry Median: 5.615 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Telephone and Data Systems (NYSE:TDS) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Telephone and Data Systems Net-Net Working Capital Related Terms
Telephone and Data Systems Net-Net Working Capital 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.
Telephone and Data Systems Net-Net Working Capital Chart
TDS vs LBRDA, IRDM, LBTYA: Net-Net Working Capital Comparison
For the Telecom Services subindustry, Telephone and Data Systems's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telephone and Data Systems's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Telephone and Data Systems's Price-to-Net-Net-Working-Capital 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 calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-25.87 mean?
Telephone and Data Systems (TDS) has a Net-Net Working Capital of $-25.87 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Telephone and Data Systems According to the industry distribution chart, Telephone and Data Systems ranks #999999 out of 56 companies in the Telecommunication Services industry.
Is Telephone and Data Systems' Net-Net Working Capital too high?
Telephone and Data Systems' current Net-Net Working Capital is $-25.87. Based on the distribution chart, Telephone and Data Systems ranks #999999 out of 56 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Telephone and Data Systems has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' Net-Net Working Capital compare to LBRDA and IRDM?
According to the Telecommunication Services industry distribution chart, Telephone and Data Systems ranks #999999 out of 56 companies for Net-Net Working Capital. This places Telephone and Data Systems in the lower half of its industry. The industry median Net-Net Working Capital is 5.62. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Telecommunication Services company?
The median Net-Net Working Capital among Telecommunication Services companies is 5.62, based on 56 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Telephone and Data Systems For the Telecommunication Services industry, the median Net-Net Working Capital is 5.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telephone and Data Systems's current Net-Net Working Capital is $-25.87. 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 $31.14, compared to a current price of $34.37 — trading 10.4% above its estimated fair value. The current Net-Net Working Capital is $-25.87. Telephone and Data Systems' overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Telephone and Data Systems (TDS), the current Net-Net Working Capital is $-25.87 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 $34.37 is trading 10.4% above its estimated GF Value™ of $31.14.
GuruFocus considers Telephone and Data Systems to be Fairly Valued.
Key valuation signals for TDS:
Net-Net Working Capital: $-25.87
GF Value™: $31.14 vs. price of $34.37 (10.4% above fair value)
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.
66GF Score
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