What Charter’s Valuations Suggest Today
As of September 15, 2017, AT&T (T) was the largest US telecom carrier by market capitalization at ~$227.8 billion, followed by Verizon Communications (VZ) at ~$195.2 billion. Charter Communications (CHTR) had a market capitalization of ~$110.1 billion as of the same date.
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In the September 15 trading session, Charter stock closed at $369.47, which is near its lower Bollinger Band level of $374.29. This suggests that Charter’s stock is oversold.
As of September 15, 2017, Charter was trading at a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of ~10.9x, which was higher than Sprint’s (S) and AT&T’s ~5.4x and ~6.5x, respectively.
As of September 15, 2017, Charter was trading at a forward PE (price-to-earnings) multiple of ~49.10x, which was higher than Verizon’s and AT&T’s ~12.50x and ~12.39x, respectively.
Short interest ratio
As of September 15, 2017, Charter’s short interest as a percentage of its shares outstanding (or short interest ratio) was ~4.14%. Generally, when a stock’s short interest ratio is greater than 40%, it suggests that investors and traders foresee a correction in the stock’s price.