Stock Analysis on Net

Charter Communications Inc. (NASDAQ:CHTR)

Common Stock Valuation Ratios (Price Multiples)

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Current Valuation Ratios

Charter Communications Inc., current price multiples

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Charter Communications Inc. Alphabet Inc. Comcast Corp. Meta Platforms Inc. Netflix Inc. Walt Disney Co. Media & Entertainment Communication Services
Selected Financial Data
Current share price (P) $555.00
No. shares of common stock outstanding 179,291,074
Growth rate (g) 12.41%
 
Earnings per share (EPS) $17.97
Next year expected EPS $20.20
Operating profit per share $46.88
Sales per share $268.26
Book value per share (BVPS) $132.77
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 30.88 42.61 21.02 28.12 57.70 121.72 39.23 38.28
Price to next year expected earnings 27.47 37.09 19.01 23.17 47.99 111.68 33.91 34.12
Price-earnings-growth (PEG) 2.49 2.86 1.99 1.32 2.85 13.54 2.50 3.14
Price to operating profit (P/OP) 11.84 41.62 12.66 25.09 34.75 80.81 31.81 26.15
Price to sales (P/S) 2.07 9.40 2.14 9.53 6.37 3.60 6.38 4.29
Price to book value (P/BV) 4.18 7.71 2.45 6.39 14.40 2.74 5.82 4.42

Based on: 10-K (reporting date: 2020-12-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Charter Communications Inc., historical price multiples

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Price to earnings (P/E) 36.53 65.14 60.65 9.34 24.77
Price to operating profit (P/OP) 14.00 16.69 14.29 22.51 35.52
Price to sales (P/S) 2.45 2.37 1.71 2.22 3.01
Price to book value (P/BV) 4.94 3.46 2.06 2.36 2.17

Based on: 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), 10-K (reporting date: 2016-12-31).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Charter Communications Inc. P/E ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Charter Communications Inc. P/OP ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Charter Communications Inc. P/S ratio increased from 2018 to 2019 and from 2019 to 2020.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Charter Communications Inc. P/BV ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 193,730,993 209,975,964 225,353,808 238,506,060 268,897,793
Selected Financial Data (US$)
Net income attributable to Charter shareholders (in millions) 3,222  1,668  1,230  9,895  3,522 
Earnings per share (EPS)2 16.63 7.94 5.46 41.49 13.10
Share price1, 3 607.56 517.46 331.05 387.50 324.46
Valuation Ratio
P/E ratio4 36.53 65.14 60.65 9.34 24.77
Benchmarks
P/E Ratio, Competitors5
Alphabet Inc. 34.65 28.96 25.92 59.34 28.45
Comcast Corp. 22.37 15.39 14.11 8.70 20.56
Meta Platforms Inc. 25.89 32.31 21.51 35.20 37.05
Netflix Inc. 86.39 80.66 118.55 220.95 328.44
Walt Disney Co. 23.96 13.36 17.28 16.65
P/E Ratio, Sector
Media & Entertainment 36.26 28.79 22.91 26.59
P/E Ratio, Industry
Communication Services 36.51 24.81 19.89 17.47

Based on: 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), 10-K (reporting date: 2016-12-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net income attributable to Charter shareholders ÷ No. shares of common stock outstanding
= 3,222,000,000 ÷ 193,730,993 = 16.63

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

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 607.56 ÷ 16.63 = 36.53

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Charter Communications Inc. P/E ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 193,730,993 209,975,964 225,353,808 238,506,060 268,897,793
Selected Financial Data (US$)
Income from operations (in millions) 8,405  6,511  5,221  4,106  2,456 
Operating profit per share2 43.38 31.01 23.17 17.22 9.13
Share price1, 3 607.56 517.46 331.05 387.50 324.46
Valuation Ratio
P/OP ratio4 14.00 16.69 14.29 22.51 35.52
Benchmarks
P/OP Ratio, Competitors5
Alphabet Inc. 33.85 29.05 30.27 28.74 23.37
Comcast Corp. 13.47 9.51 8.71 10.98 10.61
Meta Platforms Inc. 23.10 24.90 19.10 27.76 30.46
Netflix Inc. 52.02 57.82 89.46 147.25 161.44
Walt Disney Co. 24.82 11.37 11.26 11.01
P/OP Ratio, Sector
Media & Entertainment 29.40 23.37 19.86 22.65
P/OP Ratio, Industry
Communication Services 24.94 17.80 16.04 17.27

Based on: 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), 10-K (reporting date: 2016-12-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 8,405,000,000 ÷ 193,730,993 = 43.38

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

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 607.56 ÷ 43.38 = 14.00

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Charter Communications Inc. P/OP ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 193,730,993 209,975,964 225,353,808 238,506,060 268,897,793
Selected Financial Data (US$)
Revenues (in millions) 48,097  45,764  43,634  41,581  29,003 
Sales per share2 248.27 217.95 193.62 174.34 107.86
Share price1, 3 607.56 517.46 331.05 387.50 324.46
Valuation Ratio
P/S ratio4 2.45 2.37 1.71 2.22 3.01
Benchmarks
P/S Ratio, Competitors5
Alphabet Inc. 7.65 6.14 5.82 6.78 6.14
Comcast Corp. 2.28 1.84 1.75 2.34 2.22
Meta Platforms Inc. 8.78 8.45 8.52 13.80 13.70
Netflix Inc. 9.54 7.47 9.09 10.56 6.94
Walt Disney Co. 4.13 3.81 2.83 2.81 2.81
P/S Ratio, Sector
Media & Entertainment 5.90 4.86 4.49 5.46
P/S Ratio, Industry
Communication Services 4.09 3.48 3.11 3.50

Based on: 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), 10-K (reporting date: 2016-12-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 48,097,000,000 ÷ 193,730,993 = 248.27

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

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 607.56 ÷ 248.27 = 2.45

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Charter Communications Inc. P/S ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 193,730,993 209,975,964 225,353,808 238,506,060 268,897,793
Selected Financial Data (US$)
Total Charter shareholders’ equity (in millions) 23,805  31,445  36,285  39,084  40,139 
Book value per share (BVPS)2 122.88 149.76 161.01 163.87 149.27
Share price1, 3 607.56 517.46 331.05 387.50 324.46
Valuation Ratio
P/BV ratio4 4.94 3.46 2.06 2.36 2.17
Benchmarks
P/BV Ratio, Competitors5
Alphabet Inc. 6.27 4.94 4.49 4.93 3.99
Comcast Corp. 2.61 2.43 2.31 2.88 3.31
Meta Platforms Inc. 5.88 5.91 5.65 7.54 6.39
Netflix Inc. 21.56 19.86 27.41 34.48 22.88
Walt Disney Co. 3.23 2.98 3.45 3.76 3.61
P/BV Ratio, Sector
Media & Entertainment 5.38 4.52 4.31 4.96
P/BV Ratio, Industry
Communication Services 4.21 3.69 3.41 4.02

Based on: 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), 10-K (reporting date: 2016-12-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Total Charter shareholders’ equity ÷ No. shares of common stock outstanding
= 23,805,000,000 ÷ 193,730,993 = 122.88

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

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 607.56 ÷ 122.88 = 4.94

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Charter Communications Inc. P/BV ratio increased from 2018 to 2019 and from 2019 to 2020.