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Comparing CenturyLink’s Valuation with Peers’

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Forward PE multiples

On May 3, CenturyLink’s (CTL) 12-month forward PE multiple was 9.49x, while Comcast’s (CMCSA) and Charter Communications’ (CHTR) multiples were 13.75x and 38.41x, respectively. A company’s PE multiple represents how much investors are willing to pay per dollar of EPS.

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Enterprise value-to-EBITDA multiples

CenturyLink’s trailing-12-month EV[1.enterprise value]-to-EBITDA multiple was 5.06x on May 3, whereas peers Charter, Comcast, and Frontier Communications (FTR) had multiples of 10.40x, 9.79x, and 4.96x, respectively. Meanwhile, CenturyLink’s forward 12-month EV-to-EBITDA multiple was 5.39x, and Charter’s, Comcast’s, and Frontier’s were 9.61x, 8.55x, and 5.02x, respectively.

CenturyLink’s scale

On May 3, CenturyLink’s market capitalization was $12.7 billion. Comcast, Charter, and Frontier had market caps of $196.5 billion, $85.0 billion, and $0.2 billion, respectively.

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