Stock Analysis on Net

Charter Communications Inc. (NASDAQ:CHTR)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Charter Communications Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income attributable to Charter shareholders 4,654  3,222  1,668  1,230  9,895 
Net income attributable to noncontrolling interests 666  454  324  276  220 
Net noncash charges 10,759  10,693  10,761  10,504  1,398 
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions 160  193  (1,005) (243) 441 
Net cash flows from operating activities 16,239  14,562  11,748  11,767  11,954 
Purchases of property, plant and equipment (7,635) (7,415) (7,195) (9,125) (8,681)
Purchases of wireless spectrum licenses —  (464) —  —  — 
Borrowings of long-term debt 20,976  15,754  19,685  13,820  25,276 
Repayments of long-term debt (12,146) (12,094) (13,309) (10,769) (16,507)
Payments for debt issuance costs (102) (125) (103) (29) (111)
Free cash flow to equity (FCFE) 17,332  10,218  10,826  5,664  11,931 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Charter Communications Inc. 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. FCFE decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to FCFE Ratio, Current

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

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No. shares of common stock outstanding 160,654,747
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 17,332 
FCFE per share 107.88
Current share price (P) 312.59
Valuation Ratio
P/FCFE 2.90
Benchmarks
P/FCFE, Competitors1
Alphabet Inc. 19.45
Comcast Corp. 18.54
Meta Platforms Inc. 9.54
Netflix Inc.
Twitter Inc. 752.81
Walt Disney Co.
P/FCFE, Sector
Media & Entertainment 16.98
P/FCFE, Industry
Communication Services 16.11

Based on: 10-K (reporting date: 2021-12-31).

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

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 172,741,237 193,730,993 209,975,964 225,353,808 238,506,060
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 17,332  10,218  10,826  5,664  11,931 
FCFE per share3 100.34 52.74 51.56 25.13 50.02
Share price1, 4 590.47 607.56 517.46 331.05 387.50
Valuation Ratio
P/FCFE5 5.88 11.52 10.04 13.17 7.75
Benchmarks
P/FCFE, Competitors6
Alphabet Inc. 29.75 26.58 32.39 34.99 31.54
Comcast Corp. 31.29 21.40 100.99 3.41 14.93
Meta Platforms Inc. 16.84 32.77 28.91 30.97 32.08
Netflix Inc. 81.38 116.48 134.01 120.00
Twitter Inc. 667.85 52.52 66.06 12.86 42.99
Walt Disney Co. 18.20 55.35 23.22 12.49
P/FCFE, Sector
Media & Entertainment 26.95 26.55 33.19 18.04 23.67
P/FCFE, Industry
Communication Services 24.63 20.42 31.51 19.07 16.71

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 17,332,000,000 ÷ 172,741,237 = 100.34

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

5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 590.47 ÷ 100.34 = 5.88

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. P/FCFE ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.