
Changes to Charter’s Valuation after Q3 2018 Results

Nov. 1 2018, Updated 9:01 a.m. ET
Charter’s scale
Bollinger Band
In the October 29 trading session, Charter stock closed at $300.85, which was near its lower Bollinger Band level of $298.04. That means Charter stock is oversold.
Valuation metrics for Charter
Valuation metrics include price-based multiples and earnings-based multiples. On October 29, Charter had a trailing-12-month EV[1. enterprise value]-to-EBITDA multiple of ~9.5x. Its closest rivals AT&T, Sprint (S), Verizon, and T-Mobile (TMUS) had trailing-12-month EV-to-EBITDA multiples of ~7.4x, ~4.8x, ~7.4x, and ~7.7x, respectively.
Charter expects its EV-to-EBITDA multiple in 2018 to be ~9.3x. It expects it to be ~8.9x in 2019. Charter is now trading at a PE multiple of ~53.2x. In 2018, that multiple is expected to be ~57.2x, and in 2019, it’s anticipated at ~41.1x.