Stock Analysis on Net
Stock Analysis on Net

Charter Communications Inc. (NASDAQ:CHTR)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Charter Communications Inc., FCFE 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 
Purchases of property, plant and equipment (7,195) (9,125) (8,681) (5,325) (1,840)
Borrowings of long-term debt 19,685  13,820  25,276  12,344  26,045 
Repayments of long-term debt (13,309) (10,769) (16,507) (10,521) (11,326)
Payments for debt issuance costs (103) (29) (111) (284) (36)
Free cash flow to equity (FCFE) 10,826  5,664  11,931  4,255  15,202 

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Charter Communications Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Charter Communications Inc.’s FCFE decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to FCFE Ratio, Current

Charter Communications Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
No. shares of common stock outstanding 199,875,129
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 10,826 
FCFE per share 54.16
Current share price (P) 650.44
Valuation Ratio
P/FCFE 12.01
Benchmarks
P/FCFE, Competitors1
Comcast Corp. 77.10
Netflix Inc. 165.02
Walt Disney Co. 57.21
P/FCFE, Sector
Media 42.81
P/FCFE, Industry
Consumer Services 35.34

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

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

Charter Communications Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 209,975,964 225,353,808 238,506,060 268,897,793 112,438,828
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 10,826  5,664  11,931  4,255  15,202 
FCFE per share3 51.56 25.13 50.02 15.82 135.20
Share price1, 4 517.46 331.05 387.50 324.46 161.08
Valuation Ratio
P/FCFE5 10.04 13.17 7.75 20.50 1.19
Benchmarks
P/FCFE, Competitors6
Comcast Corp. 64.70 3.38 14.85 10.91 14.30
Netflix Inc. 116.48 134.01 120.00 62.98
Walt Disney Co. 55.35 23.22 12.49 13.74 20.98
P/FCFE, Sector
Media 36.23 8.77 14.70 15.39 11.31
P/FCFE, Industry
Consumer Services 25.70 13.33 18.00 19.18 14.91

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 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 10,826,000,000 ÷ 209,975,964 = 51.56

4 Closing price as at the filing date of Charter Communications Inc.’s Annual Report.

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 517.46 ÷ 51.56 = 10.04

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Charter Communications Inc.’s P/FCFE ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.