Stock fact sheet · data as of
Telephone and Data Systems, Inc. (TDS): fair value, margin of safety and Wheel Score
Ticker symbol TDS · Communication Services · Telecommunications Services · United States · Value Income
Is TDS undervalued?
Telephone and Data Systems, Inc. (TDS) closed at 36.01 on 5 Nov 2026. The GLS average fair value - the simple average of the 6 valuation models that produced a positive number - is 56.51, which puts the price 36% below it. 4 of the 6 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between GLS Growth (10.70) and DDM (153.18). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, TDS is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 74, growth score 9, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for TDS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 60.95 | +69% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 58.98 | +64% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 14.62 | -59% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 10.70 | -70% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 153.18 | +325% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 40.62 | +13% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -20.52 | -157% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 27.67 | -23% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Telephone and Data Systems, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 2.7/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC -0.1%, ROE -0.1%, ROA -0.1% - with debt at 0.41 times equity and negative free cash flow.
The dividend yield is high at 28.91% (payout ratio 21%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Service 97%, Product 3% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 9/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 11 Sep 2026.
| Piotroski F-score | 6 / 9 | ROIC | -0.1% |
|---|---|---|---|
| GLS Moat | 2.7 / 10 | ROE | -0.1% |
| Debt / equity | 0.41 | ROA | -0.1% |
| Free-cash-flow yield | -11.7% | Payout ratio | 21% |
| Institutions | 10 / 10 | Insiders · Congress | 9 · 5 / 10 |
Wheel Score 79: Good
With a Wheel Score of 79 - the Good band - Telephone and Data Systems, Inc. passes all 9 Wheel Trade Filters. How it ranks: value strong, premium strong, moat weak, health good, red flags fair, option trading good, stability fair. Moat (weak) is the part keeping it out of the Prime band.
Implied volatility is 57% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 33,074 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.1M shares a day on a market cap of $3.9B, with a beta of 0.32 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 36% below fair value | |
| Premium | Strong | implied volatility 57% | |
| Moat | Weak | moat 2.7/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Fair | Red Flags score 75/100 | |
| Option trading | Good | 5,520 contracts a day, 33,074 open interest | |
| Stability | Fair | beta 0.32, $3.9B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Telephone and Data Systems, Inc. reports earnings on 6 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Telecommunications Services
The 12 companies below are the closest to Telephone and Data Systems, Inc. by market cap within the Telecommunications Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PHI PLDT Inc. | 18.12 | 42.74 | +58% | 37No options | $3.9B |
| TKC Turkcell Iletisim Hizmetleri A.S. | 4.73 | 18.98 | +75% | 47Weak | $4.1B |
| LBTYB Liberty Global plc | 11.76 | - | - | 15No options | $3.6B |
| LUMN Lumen Technologies, Inc. | 4.47 | 0.6769 | -560% | 22Weak | $4.6B |
| LBTYA Liberty Global plc | 9.58 | - | - | 33Weak | $3.2B |
| LBTYK Liberty Global plc | 9.34 | - | - | 27Weak | $3.2B |
| IRDM Iridium Communications Inc. | 43.81 | 47.63 | +8% | 35Weak | $4.6B |
| KYIV Kyivstar Group Ltd. Common Shares | 13.62 | 28.80 | +53% | 83Good | $3.1B |
| LILAP Liberty Latin America Ltd. 9% Cum Perp Red Pfd Shs Series A When-issued | 19.90 | 37.96 | +48% | 25No options | $3.1B |
| TEO Telecom Argentina S.A. | 10.44 | 47.23 | +78% | 42Weak | $4.9B |
| AD Array Digital Infrastructure Inc | 33.23 | 112.42 | +70% | 34Weak | $2.9B |
| UZE Array Digital Infrastructure, Inc. 5.500% Senior Notes due 2070 | 15.33 | 118.18 | +87% | 24No options | $2.9B |
⚖ Compare TDS with 7 of them All Communication Services stocks →
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Start free See the Sunday ScanQuestions about TDS
Is TDS undervalued right now?
By the GLS models, yes: at 36.01 the stock is 36% below the average fair value of 56.51 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of TDS and what does it mean?
TDS scores 79 out of 100 (Good). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for TDS?
56.51 per share as of 5 Nov 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Telephone and Data Systems, Inc. report earnings next?
The next earnings report is due on 6 Nov 2026 (before the open), 1 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does TDS have listed options, and how liquid are they?
Yes. The nightly snapshot found 88 listed contracts with 33,074 open interest across all expiries and implied volatility of 57% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.