Stock Analysis on Net

Charter Communications Inc. (NASDAQ:CHTR)

$24.99

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Charter Communications Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income attributable to Charter shareholders
Add: Net income attributable to noncontrolling interest
Add: Income tax expense
Earnings before tax (EBT)
Add: Interest expense, net
Earnings before interest and tax (EBIT)
Add: Depreciation and amortization
Earnings before interest, tax, depreciation and amortization (EBITDA)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Net Income Attributable to Charter Shareholders
The net income demonstrates a generally upward trend from 2020 through 2024, increasing from $3,222 million to $5,083 million. There is a notable peak in 2022 at $5,055 million, followed by a slight decline in 2023 to $4,557 million, and a recovery in 2024 to surpass the previous peak. This pattern suggests some fluctuations but overall growth in profitability attributable to shareholders over the period.
Earnings Before Tax (EBT)
EBT shows a consistent increase over the five-year period, rising from $4,302 million in 2020 to $7,502 million in 2024. The data reflects strong earnings growth before tax, with a temporary dip in 2023 compared to 2022, paralleling the trend seen in net income. This indicates resilience in earnings performance despite possible challenges in that year.
Earnings Before Interest and Tax (EBIT)
EBIT has steadily improved, growing from $8,150 million in 2020 to $12,731 million in 2024. The growth rate appears relatively stable year-on-year, with minor fluctuations between 2022 and 2023 where EBIT remained almost flat. This suggests operational profitability has strengthened over time, with sustained earnings before interest and tax expenses.
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
EBITDA increased from $17,854 million in 2020 to $21,404 million in 2024, showing a positive growth trend. However, the growth slowed somewhat in the latter years; a slight decline occurred from 2022 to 2023, followed by a recovery in 2024. This pattern indicates stable cash generation capacity with some short-term volatility.
Summary of Trends
Overall, the financial data reveals progressive improvement in profitability and earnings capacity over the five-year period from 2020 to 2024. While there are some short-term fluctuations—particularly in 2023—both net income and various earnings metrics display resilience and growth. Operational efficiency, as evidenced by EBIT and EBITDA trends, remains strong with steady increases. These patterns suggest effective cost management and revenue growth contributing to enhanced financial performance across most years.

Enterprise Value to EBITDA Ratio, Current

Charter Communications Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV)
Earnings before interest, tax, depreciation and amortization (EBITDA)
Valuation Ratio
EV/EBITDA
Benchmarks
EV/EBITDA, Competitors1
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.
EV/EBITDA, Sector
Media & Entertainment
EV/EBITDA, Industry
Communication Services

Based on: 10-K (reporting date: 2024-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Charter Communications Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)1
Earnings before interest, tax, depreciation and amortization (EBITDA)2
Valuation Ratio
EV/EBITDA3
Benchmarks
EV/EBITDA, Competitors4
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.
EV/EBITDA, Sector
Media & Entertainment
EV/EBITDA, Industry
Communication Services

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 See details »

2 See details »

3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =

4 Click competitor name to see calculations.


The financial data reveals a clear trend of declining enterprise value (EV) for the company over the five-year period. Starting from approximately $205.9 billion in 2020, EV decreased steadily each year, reaching about $148.5 billion by the end of 2024. This represents a cumulative reduction of roughly 27.9% over the period.

Conversely, the company's earnings before interest, tax, depreciation, and amortization (EBITDA) have generally increased throughout the same timeframe. EBITDA rose from approximately $17.9 billion in 2020 to about $21.4 billion in 2024. Although the growth between 2022 and 2023 shows a slight dip, the overall trend remains positive, suggesting improvements in operational profitability or cash flow generation.

The ratio of EV to EBITDA, which serves as a valuation metric indicating how many times the company's EBITDA is covered by its enterprise value, has decreased consistently from 11.53 in 2020 to 6.94 in 2024. The declining EV/EBITDA ratio suggests that the company's valuation has become more attractive relative to its earnings, potentially reflecting market perceptions of reduced risk, improved earnings quality, or other strategic factors affecting valuation multiples.

Enterprise Value (EV)
Steady decline over five years, indicating a reduction in market capitalization or changes in debt and cash levels.
EBITDA
Gradual increase overall, reflecting growing operational cash earnings despite minor fluctuations.
EV/EBITDA Ratio
Consistent decrease, signaling improving valuation multiples and greater earnings coverage by enterprise value.

In summary, the company is experiencing a downward trend in enterprise value while simultaneously enhancing its EBITDA performance, resulting in a more favorable EV/EBITDA ratio. This combination could indicate improved operational efficiency and potentially undervalued market pricing relative to earnings.