Price to FCFE (P/FCFE)
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Free Cash Flow to Equity (FCFE)
Charter Communications Inc., FCFE calculation
US$ in millions
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).
The analysis of the financial data over the five-year period reveals notable fluctuations in cash flow metrics, impacting the financial performance and liquidity position.
- Net cash flows from operating activities
- This metric increased from US$14,562 million in 2020 to a peak of US$16,239 million in 2021, indicating an improvement in operational cash generation. However, it declined in subsequent years to US$14,925 million in 2022, then slightly decreased further to US$14,433 million in 2023, and remained nearly stable at US$14,430 million in 2024. The overall trend suggests that after initial growth, the company's operating cash flow stabilized at a lower level but still maintained positive cash generation.
- Free cash flow to equity (FCFE)
- This indicator showed substantial volatility during the period. It rose sharply from US$10,218 million in 2020 to US$17,332 million in 2021, indicating significant cash availability to equity shareholders. Subsequently, FCFE declined considerably to US$11,810 million in 2022, followed by a steep drop to US$3,410 million in 2023 and further to US$412 million in 2024. This pronounced decline highlights increased capital expenditures, debt repayments, dividend payments, or other financial activities reducing the free cash flow accessible to equity holders.
In summary, while the net cash from operating activities remained relatively stable after 2021, the free cash flow to equity experienced a sharp deterioration, especially in the latter years. This suggests that despite consistent operating cash inflows, the company’s cash available to shareholders diminished significantly, potentially signaling strategic investments or financial obligations absorbing cash resources.
Price to FCFE Ratio, Current
Charter Communications Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Alphabet Inc. | |
| Comcast Corp. | |
| Meta Platforms Inc. | |
| Netflix Inc. | |
| Walt Disney Co. | |
| P/FCFE, Sector | |
| Media & Entertainment | |
| P/FCFE, Industry | |
| Communication Services | |
Based on: 10-K (reporting date: 2024-12-31).
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| P/FCFE, Sector | ||||||
| Media & Entertainment | ||||||
| P/FCFE, 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 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Charter Communications Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price showed a decline from $607.56 at the end of 2020 to $319.21 by the end of 2023, representing a significant downward trend over this period. However, there was a slight recovery in 2024, with the price increasing to $345.49.
- FCFE per Share Evolution
- Free Cash Flow to Equity (FCFE) per share experienced fluctuations during the period. It rose sharply from $52.74 in 2020 to a peak of $100.34 in 2021, then declined to $77.37 in 2022. From 2022 onwards, there was a marked decrease, with FCFE per share dropping to $23.48 in 2023 and further reducing to $2.90 in 2024.
- P/FCFE Ratio Analysis
- The Price to FCFE ratio initially decreased from 11.52 in 2020 to 5.10 in 2022, indicating that the share price was becoming more attractive relative to FCFE. However, from 2022 onwards, the ratio increased dramatically, reaching 13.59 in 2023 and an exceptionally high 119.03 in 2024. This sharp rise suggests a significant divergence between the share price and the free cash flow per share, likely due to the steep decline in FCFE rather than an increase in the stock price.
- Overall Insights
- The data reveals that while the share price has decreased substantially over the period, FCFE per share has experienced a more volatile pattern with a steep decline after 2021. The rapid increase in the P/FCFE ratio towards 2024 indicates a potential overvaluation of the share price relative to the underlying free cash flow, raising concerns about the sustainability of returns from an equity cash flow perspective. The slight recovery in share price in 2024 contrasts with the continued decline in FCFE, suggesting market optimism or other factors influencing price that are not reflected in free cash flow generation.