Charter Communications, Inc. (CHTR) Stock Valuation — PE Analysis
Telecommunications Services · NASDAQ
Current Price
$145.82
PE Ratio (TTM)
3.7x
Intrinsic Value
Outside reliable range
COMPETITIVE MOAT
↑Network Infrastructure Dominance
Charter operates an extensive, high-capacity fiber network. This physical infrastructure is costly and time-consuming for competitors to replicate, creating a significant barrier to entry.
↑Bundled Service Ecosystem
Offering internet, TV, and mobile services together creates customer stickiness. Bundling increases switching costs and provides a more integrated user experience, reducing churn.
↑FCF Inflection Potential
Exiting a major CAPEX cycle positions Charter for substantial free cash flow growth. This financial flexibility can be used for debt reduction, buybacks, or further strategic investments.
INVESTMENT RISKS
↓Competition Intensifies
New technologies and aggressive pricing from competitors, including 5G fixed wireless and fiber buildouts, threaten market share. This can lead to price wars and reduced profitability.
↓Content Cost Escalation
Rising costs for broadcast and sports programming directly impact profitability. Charter's ability to pass these costs onto consumers is limited by competitive pressures.
↓Regulatory Scrutiny
The telecommunications industry faces ongoing regulatory oversight regarding pricing, net neutrality, and mergers. Unfavorable regulations could impact business operations and profitability.
Base case
CHTR base case PE valuation
Base case assumptions: 11.5% annual earnings growth, 4x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CHTR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Charter Communications, Inc. respond.
Open PE Calculator for CHTRCompany Overview
Charter Communications, Inc. is a prominent U.S. broadband and cable operator, delivering services to residential and commercial customers nationwide. Its offerings encompass a wide array of subscription video services, including on-demand content, high-definition channels, digital video recording (DVR), and pay-per-view options. Internet services form a crucial part of its portfolio, featuring robust security measures against cyber threats, high-performance in-home WiFi with provided routers, and extensive out-of-home and Spectrum WiFi access. The company also provides voice communication services utilizing Voice over Internet Protocol (VoIP) technology. For its business and carrier clientele, Charter offers comprehensive broadband communication solutions. These include internet access, data networking, fiber optic connectivity, video entertainment, and business telephone services, catering to a diverse range of needs from office buildings to cellular towers. Further diversifying its operations, Charter provides mobile services, alongside specialized business solutions such as static IP addresses, dedicated business WiFi, email and security services, multi-line telephone systems, and web-based service management. It also offers a suite of communication products and managed service solutions. In the media sector, the company sells local advertising across various platforms, including major networks like TBS, CNN, and ESPN, as well as local sports and news channels, and utilizes its "Audience App" for linear inventory optimization. Additionally, Charter owns and operates regional sports and news networks and supplies wholesale data connectivity services to mobile and wireline carriers. Serving approximately 32 million customers across 41 states, Charter Communications was founded in 1993 and maintains its headquarters in Stamford, Connecticut.
Financial Metrics — CHTR PE Stock Valuation Data
PE Ratio (TTM)
3.7x
PEG Ratio
1.17
Earnings Yield
26.96%
ROE (TTM)
30.8%
Revenue/Share (TTM)
$435.39
Debt/Equity
5.86x
Frequently Asked Questions
What is the PE ratio of CHTR?
The trailing twelve-month PE ratio of CHTR reflects how much investors pay per dollar of Charter Communications, Inc.'s earnings. This metric is most useful when compared to Telecommunications Services peers and the company's own historical range.
Is CHTR overvalued based on PE ratio?
CHTR's PE of 3.7x combined with a PEG ratio of 1.17 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Telecommunications Services, a DCF analysis may be more appropriate.
How do I value CHTR stock using PE ratio?
To value Charter Communications, Inc. using PE: (1) Compare the current PE (3.7x) against the Telecommunications Services median to assess relative pricing, (2) check the PEG ratio (1.17) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CHTR?
CHTR's PEG ratio is 1.17, calculated by dividing the PE ratio (3.7x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CHTR stock valuation?
PE ratio gives a quick relative read — how CHTR is priced versus Telecommunications Services peers. DCF provides an absolute value based on projected free cash flows. For CHTR, with a strong ROE of 30.8%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CHTR DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Communication Services valuationsP/E and DCF value CHTR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.