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How Charter’s Valuation Compares with Peers’

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Updated

Charter’s scale

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Charter’s valuation metrics

Valuation is represented by price- and earnings-based multiples. On January 9, Charter’s TTM ( trailing-12-month) EV[1.enterprise value]-to-EBITDA multiple was ~9.49x, while AT&T’s, Verizon’s, Sprint’s (S), and T-Mobile’s (TMUS) TTM EV-to-EBITDA multiples were ~7.41x, ~7.44x, ~4.74x, and ~7.60x, respectively.

Charter expects its EV-to-EBITDA multiple to be ~8.86x in 2019 and ~8.24x in 2020. Its PE multiple is ~52.64x, and Charter expects it to be ~39.15x in 2019 and ~22.21x in 2020.

Short interest ratio

As of January 9, Charter stock’s short interest as a percentage of float (or short interest ratio) was ~5.8%. A stock having a short interest ratio above 40% suggests investors and traders foresee a fall in its price.

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