uploads///Telecom Charter Q Market Capitalization

How Charter Communications’ Valuation Stacks Up against Peers

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Dec. 4 2020, Updated 3:53 p.m. ET

Charter’s scale

As of May 24, Charter Communications (CHTR) had a market capitalization of $84.4 billion, as showcased in the chart below. Meanwhile, Comcast (CMCSA) and Dish Network (DISH) have market capitalizations of $193.7 billion and $16.1 billion, respectively.

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Valuation metrics for Charter

Valuation metrics include earnings-based multiples and price-based multiples. On May 24, Charter had a trailing-12-month EV-to-EBITDA multiple of 10.36x. Comcast and Dish Network had trailing-12-month EV-to-EBITDA multiples of 9.70x and 10.66x, respectively.

On May 24, Charter was trading at a 12-month forward EV-to-EBITDA ratio of 9.58x. Comcast and Dish Network had 12-month forward EV-to-EBITDA multiples of 8.46x and 12.87x, respectively.

On May 24, Charter was trading at a 12-month forward PE ratio of 38.40x. Dish Network and Comcast had 12-month forward PE multiples of 15.12x and 13.52x, respectively.

Short interest ratio

As of May 24, Charter stock’s short interest ratio (short interest as a percentage of float) was ~5.83%. A short interest ratio of higher than 40% suggests that traders and investors foresee a fall in the stock’s price.

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