CenturyLink’s Current Valuation Compared to Its Peers



Forward PE ratio

Valuation multiples are commonly used in the telecom sector to compare different business entities. On June 20, CenturyLink (CTL) was trading at a 12-month forward PE ratio of 8.60x. Charter Communications (CHTR) and Comcast’s (CMCSA) 12-month forward PE ratios were 38.15x and 13.65x, respectively. A company’s PE ratio represents the amount investors are willing to pay per dollar of the EPS.

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Forward EV-to-EBITDA multiple

On June 20, CenturyLink had a trailing 12-month EV-to-EBITDA multiple of 4.92x—compared to its peers. Charter Communication, Comcast, and Frontier Communications (FTR) had trailing 12-month EV-to-EBITDA multiples of 10.64x, 9.83x, and 4.94x, respectively. On June 20, CenturyLink was trading at a 12-month forward EV-to-EBITDA multiple of 5.27x. Charter Communications, Comcast, and Frontier Communications’ 12-month forward EV-to-EBITDA multiples were 9.76x, 8.52x, and 5.02x, respectively.

CenturyLink’s scale

On June 20, CenturyLink’s market capitalization was $12.4 billion. Comcast had a market capitalization of $197.7 billion. Charter Communications’ market capitalization was $88.8 billion, while Frontier Communications’ market capitalization was $0.15 billion.


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