T-Mobile Stock Costs 50% More Than AT&T, But It's the Better Buy
T-Mobile US (NASDAQ: TMUS) is, by far, the most expensive stock of the three big U.S. wireless carriers, but that doesn't mean investors should avoid the stock.
Based on an analysis of T-Mobile, AT&T's (NYSE: T), and Verizon Communication's (NYSE: VZ) free cash flow expectations for 2023, T-Mobile shares trade at a price-to-free-cash-flow multiple 53% higher than AT&T and 38% higher than Verizon. But with years of free cash flow growth ahead of it, T-Mobile certainly deserves a premium. In fact, despite the premium price, T-Mobile can be a better investment than either AT&T or Verizon.
T-Mobile will improve its free cash flow by about 75% in 2023, putting it more in line with AT&T and Verizon.
Source Fool.com
