Charter Communications, Inc. operates as a broadband connectivity company in the United States. The company offers subscription-based internet, mobile, video, and voice services; broadband connectivity services, including fixed internet, WiFi, and mobile; Spectrum internet products; advanced WiFi services; and in-home WiFi, which provides customers with high performance wireless routers and managed WiFi services to enhance their wireless internet experience.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (17 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $150.01 Implied EV: $119.81B |
What growth rate is the market pricing in at $126?
The market implies +9.8% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +11.4%, reflecting heavy growth investment.
Narrow moat with margin stability as the key competitive advantage. Improving roic consistency would strengthen the moat.
"Mr. Market is panicking — potential buying opportunity if fundamentals are strong"
Near fair value but market is fearful — conditions may present an opportunity if fear is temporary
