Microsoft Excel LibreOffice Calc

Charter Communications Inc. (CHTR)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Charter Communications Inc., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income (loss) attributable to Charter shareholders 1,668  1,230  9,895  3,522  (271)
Net income attributable to noncontrolling interests 324  276  220  223  — 
Net noncash charges 10,761  10,504  1,398  3,316  2,309 
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions (1,005) (243) 441  980  321 
Net cash flows from operating activities 11,748  11,767  11,954  8,041  2,359 
Cash paid for interest, net of tax1 3,247  3,452  2,224  1,745  856 
Purchases of property, plant and equipment (7,195) (9,125) (8,681) (5,325) (1,840)
Free cash flow to the firm (FCFF) 7,800  6,094  5,497  4,461  1,375 

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-16), 10-K (filing date: 2016-02-10).

1 See details »

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Charter Communications Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Charter Communications Inc.’s FCFF increased from 2017 to 2018 and from 2018 to 2019.

Interest Paid, Net of Tax

Charter Communications Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR1 18.06% 10.68% 35.00% 35.00% 18.13%
Interest Paid, Net of Tax
Cash paid for interest, before tax 3,963  3,865  3,421  2,685  1,046 
Less: Cash paid for interest, tax2 716  413  1,197  940  190 
Cash paid for interest, net of tax 3,247  3,452  2,224  1,745  856 

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-16), 10-K (filing date: 2016-02-10).

1 See details »

2 2019 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 3,963 × 18.06% = 716

Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 175,287 
Free cash flow to the firm (FCFF) 7,800 
Valuation Ratio
EV/FCFF 22.47
Benchmarks
EV/FCFF, Competitors1
Comcast Corp. 15.37
Netflix Inc. —
Walt Disney Co. 101.58
EV/FCFF, Sector
Media 34.27
EV/FCFF, Industry
Consumer Services 27.68

Based on: 10-K (filing date: 2020-01-31).

1 Click competitor name to see calculations.

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

Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 191,615  154,866  170,478  157,686  53,830 
Free cash flow to the firm (FCFF)2 7,800  6,094  5,497  4,461  1,375 
Valuation Ratio
EV/FCFF3 24.57 25.41 31.01 35.35 39.14
Benchmarks
EV/FCFF, Competitors4
Comcast Corp. 18.00 18.48 21.74 23.79 18.87
Netflix Inc. — — — — —
Walt Disney Co. 143.38 18.15 19.80 20.02 30.86
EV/FCFF, Sector
Media 40.32 26.64 24.60 28.31 28.40
EV/FCFF, Industry
Consumer Services 30.40 24.67 26.75 24.41 24.81

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-16), 10-K (filing date: 2016-02-10).

1 See details »

2 See details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 191,615 ÷ 7,800 = 24.57

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Charter Communications Inc.’s EV/FCFF ratio decreased from 2017 to 2018 and from 2018 to 2019.