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Is Charter Communications Stock Undervalued?

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Charter Communications’ stock returns

Charter Communications (CHTR) stock has risen close to 4.6% since the beginning of June. On June 17, Charter Communications closed at $394.07, which was 0.5% higher than its previous closing price, 0.9% lower than its 52-week high of $397.68, and 45.1% higher than its 52-week low of $271.56. The company’s market cap is $88.9 billion.

Based on Charter Communications’ closing price on June 17, the company has reported returns of -0.3% in the last five trading days, 2.0% in the trailing one-month period, and 32.6% in the trailing 12-month period. The company has reported returns of 38.3% since the beginning of 2019.

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Is the stock undervalued?

Charter Communications stock is trading at a forward PE ratio of 38.44x. The company’s earnings are expected to rise 42.9% in 2019 and 75.7% in 2020. Charter Communications’ earnings are also expected to rise at a compound annual growth rate of 45.3% in the next five years. The company’s sales might rise 4.9% annually over the next three years. Charter Communications stock looks undervalued considering the PE ratio.

Analysts’ views

Among the 30 analysts tracking Charter Communications, 20 recommended a “buy,” nine recommended a “hold,” and one recommended a “sell.” The analysts have an average target price of $409.58, which indicates that the stock has an upside potential of 3.9% from the current levels.

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