How CenturyLink’s Valuation Multiple Compares to Its Peers’



Forward PE

In this article, we’ll take a look at how CenturyLink (CTL) is valued following its first-quarter earnings results. On May 9, CenturyLink was trading at a 12-month forward PE ratio of 8.54x. Comcast’s (CMCSA) and Charter Communications’ (CHTR) 12-month forward PE multiples were 13.58x and 38.31x, respectively.

A company’s PE ratio represents the amount investors are willing to pay per dollar of its EPS.

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Forward EV-to-EBITDA valuation

On May 9, CenturyLink had a trailing-12-month EV-to-EBITDA (enterprise value-to-EBITDA) ratio of 4.96x. In comparison, its peers Charter, Comcast, and Frontier Communications (FTR) had trailing-12-month EV-to-EBITDA multiples of 10.35x, 9.74x, and 4.96x, respectively. On May 9, CenturyLink was trading at a 12-month forward EV-to-EBITDA ratio of 5.29x. Charter, Comcast, and Frontier’s 12-month forward EV-to-EBITDA multiples were 9.55x, 8.47x, and 5.02x, respectively.

CenturyLink’s scale

On May 9, CenturyLink’s market cap was $11.8 billion. Comcast had a market cap of $194.8 billion, Charter’s market cap was $84.2 billion, and Frontier’s market cap was $0.2 billion on the same date.


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