Telecommunications Services · NASDAQ
Current Price
$158.65
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Charter Communications, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for CHTRCharter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company offers subscription-based video services, including video on demand, high-definition television, digital video recorder, pay-per-view services. It provides Internet services, such as security suite that protects computers from viruses and spyware, and threats from malicious actors; in-home WiFi, which provides customers with high performance wireless routers to enhance their in-home wireless Internet experience; out-of-home WiFi; and Spectrum WiFi services, as well as video services. The company also offers voice communications services using voice over Internet protocol technology; and broadband communications solutions, such as Internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. In addition, it provides mobile services; offers video programming, static IP and business WiFi, email and security, and multi-line telephone services, as well as Web-based service management; sells local advertising across various platforms for networks, such as TBS, CNN, and ESPN; sells advertising inventory to local sports and news channels; and offers Audience App for optimizes linear inventory. Further, the company offers communications products and managed service solutions; data connectivity services to mobile and wireline carriers on a wholesale basis; and owns and operates regional sports and news networks. It serves approximately 32 million customers in 41 states. The company was founded in 1993 and is headquartered in Stamford, Connecticut.
ROIC (TTM)
7.1%
ROE (TTM)
30.8%
FCF Yield
20.21%
Based on trailing twelve-month data, CHTR shows a free cash flow per share of N/A and a ROIC of 7.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 20.21% are important context metrics when evaluating CHTR's stock valuation relative to peers.
The intrinsic value of CHTR depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether CHTR is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $158.65. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Charter Communications, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Telecommunications Services industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CHTR's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Charter Communications, Inc., this means projecting how much free cash flow the Telecommunications Services will produce over the next 5-10 years, then discounting those amounts to today's dollars. CHTR's ROIC of 7.1% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CHTR, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
