Telephone and Data SystemsTDS +3.25%64 Pretax Margin % is 75.56% as of Mar. 2026, which is 2261% above its 10-year median of 3.20. GuruFocus rates TDS with a GF Score™ of 64/100 and a GF Value™ of $32.81 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 368 Telecommunication Services companies, Telephone and Data Systems ranks better than 71.74% on this metric.
The historical rank and industry rank for Telephone and Data Systems's Pretax Margin % or its related term are showing as below:
TDS'
s Pretax Margin % Range Over the Past 10 Years
Min: -41.58 Med: 3.2 Max: 16.22
Current: 16.22
TDS's Pretax Margin % is ranked better than 71.74% of 368
companies
in the Telecommunication Services industry
Industry Median: 7.64
vs TDS: 16.22
Telephone and Data Systems (NYSE:TDS) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Telephone and Data Systems Pretax Margin % Related Terms
Telephone and Data Systems Pretax Margin % 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 AD, LBTYA, LBRDA: Pretax Margin % Comparison
For the Telecom Services subindustry, Telephone and Data Systems's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telephone and Data Systems's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Telephone and Data Systems's Pretax Margin % 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.
Telephone and Data Systems (TDS) has a Pretax Margin % of 75.56% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Telephone and Data Systems and its competitors. This is 2261% above median its historical median of 3.20. According to the industry distribution chart, Telephone and Data Systems ranks #104 out of 368 companies in the Telecommunication Services industry, placing it in the top 28.3%.
Is Telephone and Data Systems' Pretax Margin % too high?
Telephone and Data Systems' current Pretax Margin % of 75.56% is 2261% above median its 10-year median of 3.20. The Telecommunication Services industry median Pretax Margin % is 7.64. Telephone and Data Systems' value of 75.56% is 889% above this industry median. Based on the distribution chart, Telephone and Data Systems ranks #104 out of 368 companies in the Telecommunication Services industry, which is above the industry midpoint. 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' Pretax Margin % compare to AD and LBTYA?
According to the Telecommunication Services industry distribution chart, Telephone and Data Systems ranks #104 out of 368 companies for Pretax Margin %. This puts Telephone and Data Systems in the upper half of its industry. The industry median Pretax Margin % is 7.64. Telephone and Data Systems' value of 75.56% is 889% above this benchmark. While the company's 10-year median is 3.20 vs. the industry median of 7.64, Telephone and Data Systems has consistently been above 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 Pretax Margin % for a Telecommunication Services company?
The median Pretax Margin % among Telecommunication Services companies is 7.64, based on 368 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telephone and Data Systems's current Pretax Margin % of 75.56% is 889% above 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Telephone and Data Systems and its competitors. For the Telecommunication Services industry, the median Pretax Margin % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telephone and Data Systems's current Pretax Margin % is 75.56%, which is 2261% above median its own 10-year median of 3.20. 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 $32.81, compared to a current price of $38.45 — trading 17.2% above its estimated fair value. The current Pretax Margin % is 75.56%, which is 2261% above median its 10-year median of 3.20 and 889% above the Telecommunication Services industry median of 7.64. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Telephone and Data Systems (TDS), the current Pretax Margin % is 75.56% 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 $38.45 is trading 17.2% above its estimated GF Value™ of $32.81.
GuruFocus considers Telephone and Data Systems to be Modestly Overvalued.
Key valuation signals for TDS:
Pretax Margin %: 75.56% (2261% above median its 10-year median of 3.20)
GF Value™: $32.81 vs. price of $38.45 (17.2% above fair value)
Industry Position: 889% above the Telecommunication Services median (#104 of 368)
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.
64GF Score
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