What is Telephone & Data Systems Inc worth?
With the base-case assumptions below, a discounted cash flow model on Telephone & Data Systems Inc's reported free cash flow gives $25.19 per share. The share price was $32.77 on November 10, 2026, 30% above that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -10.0% | 10.0% | $18.93 | -42% |
| Base | -5.0% | 9.0% | $25.19 | -23% |
| Bull | 0.0% | 8.0% | $36.84 | +12% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $29.35 | $30.57 | $32.07 | $33.94 | $36.34 |
| 8.0% | $26.28 | $27.07 | $28.01 | $29.13 | $30.51 |
| 9.0% | $24.02 | $24.56 | $25.19 | $25.92 | $26.78 |
| 10.0% | $22.28 | $22.67 | $23.10 | $23.60 | $24.18 |
| 11.0% | $20.91 | $21.19 | $21.50 | $21.86 | $22.26 |
Where the presets come from
Base: years 1 to 5 grow at Telephone & Data Systems Inc's revenue growth rate over the last 5 fiscal years (-25.1% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions