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How Does Charter Communications’ Valuation Look?

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Charter’s scale

On June 11, Charter Communications (CHTR) had a market cap of $88.1 billion. Meanwhile, Comcast (CMCSA) and Dish Network (DISH) had market caps of $187.1 billion and $17.5 billion, respectively.

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Charter’s valuation metrics

Valuation metrics include price-based multiples and earnings-based multiples. On June 11, Charter had a trailing-12-month EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 10.60x compared to the multiples of its closest peers. Dish Network and Comcast had trailing-12-month EV-to-EBITDA multiples of 11.18x and 9.49x, respectively.

On June 11, Charter was trading at a 12-month forward EV-to-EBITDA ratio of 9.72x. Comcast and Dish Network had 12-month forward EV-to-EBITDA multiples of 8.22x and 13.62x, respectively.

On June 11, Charter was trading at a 12-month forward PE ratio of 38.30x. In comparison, Dish Network and Comcast had 12-month forward PE multiples of 16.74x and 12.96x, respectively.

Short interest ratio

On June 11, Charter stock’s short interest ratio (short interest as a percentage of its float) was ~6.08%. A short interest ratio of more than 40% indicates that the traders and investors foresee a fall in a stock’s price.

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