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A Look at Charter Communications’ Valuation in March

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Charter’s scale

As of March 19, Charter Communications (CHTR) had a market cap of $81.1 billion. Meanwhile, Comcast (CMCSA) and Dish Network (DISH) had market caps of $180 billion and $15 billion, respectively.

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Valuation metrics for Charter

Valuation metrics include price-based multiples and earnings-based multiples. On March 19, Charter had a trailing-12-month EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 10.23x. In comparison, its closest peers, Comcast and Dish Network, had trailing-12-month EV-to-EBITDA multiples of 9.73x and 9.98x, respectively.

On March 19, Charter was trading at a 12-month forward EV-to-EBITDA ratio of 9.47x. Comcast and Dish Network had 12-month forward EV-to-EBITDA multiples of 8.32x and 12.32x, respectively.

On March 19, Charter was trading at a 12-month forward PE multiple of 39.21x. Comcast and Dish Network had 12-month forward PE multiples of 13.89x and 13.87x, respectively.

Short interest ratio

As of March 19, Charter stock’s short interest as a percentage of float (or short interest ratio) was ~5.57%. A short interest ratio of more than 40% suggests that investors and traders foresee a fall in a stock’s price.

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