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.
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
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.
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.