Common Stock Valuation Ratios (Price Multiples)

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Current Valuation Ratios

Charter Communications Inc., current price multiples

 
Charter Communications Inc. Comcast Corp. Time Warner Inc. Twenty-First Century Fox Inc. Walt Disney Co. Media Consumer Services
Selected Financial Data
Current share price (P) $ 268.43
No. shares of common stock outstanding 237,463,450
Growth rate (g) 132.37%
 
Earnings per share (EPS) $ 41.67
Next year expected EPS $ 96.83
Operating profit per share $ 17.29
Sales per share $ 175.10
Book value per share (BVPS) $ 164.59
Ratios (Price Multiples)
Price to earnings (P/E) 6.44 6.43 14.05 24.43 16.95 10.20 24.55
Price to next year expected earnings 2.77 5.63 12.72 19.89 14.97 8.97 21.41
Price-earnings-growth (PEG) 0.05 0.45 1.34 1.07 1.28 0.75 1.68
Price to operating profit (P/OP) 15.52 8.12 9.31 11.56 11.05 10.15 17.67
Price to sales (P/S) 1.53 1.73 2.36 2.53 2.76 2.11 1.57
Price to book value (P/BV) 1.63 2.13 2.60 4.59 3.68 2.63 6.13

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

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

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Historical Valuation Ratios (Summary)

Charter Communications Inc., historical price multiples

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Price to earnings (P/E) 9.34 24.77
Price to operating profit (P/OP) 22.51 35.52 16.26 20.50 14.61
Price to sales (P/S) 2.22 3.01 1.86 2.19 1.63
Price to book value (P/BV) 2.36 2.17 136.37 87.92
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.'s P/E ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.
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.'s P/OP ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.
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.'s P/S ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. Charter Communications Inc.'s P/BV ratio increased from 2015 to 2016 and from 2016 to 2017.

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Price to Earnings (P/E)

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

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 238,506,060 268,897,793 112,438,828 111,999,687 106,144,075
Selected Financial Data (USD $)
Net income (loss) attributable to Charter shareholders (in millions) 9,895  3,522  (271) (183) (169)
Earnings per share (EPS)3 41.49 13.10 -2.41 -1.63 -1.59
Share price1, 2 387.50 324.46 161.08 177.77 125.08
Ratio
P/E ratio4 9.34 24.77
Benchmarks
P/E Ratio, Competitors
Comcast Corp. 8.70 20.56 17.78 18.01 21.12
Time Warner Inc. 14.03 19.14 13.74 17.89 15.65
Twenty-First Century Fox Inc. 17.69 17.69 7.32 17.35 10.23
Walt Disney Co. 17.28 16.65 23.41 20.31 19.83
P/E Ratio, Sector
Media 11.47 19.31 16.64 19.55 17.36
P/E Ratio, Industry
Consumer Services 23.26 22.79 23.36 24.03 19.17

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Charter Communications Inc.'s Annual Report.

2017 Calculations

3 EPS = Net income (loss) attributable to Charter shareholders ÷ No. shares of common stock outstanding
= 9,895,000,000 ÷ 238,506,060 = 41.49

4 P/E ratio = Share price ÷ EPS
= 387.50 ÷ 41.49 = 9.34

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.'s P/E ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.

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Price to Operating Profit (P/OP)

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

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 238,506,060 268,897,793 112,438,828 111,999,687 106,144,075
Selected Financial Data (USD $)
Income from operations (in millions) 4,106  2,456  1,114  971  909 
Operating profit per share3 17.22 9.13 9.91 8.67 8.56
Share price1, 2 387.50 324.46 161.08 177.77 125.08
Ratio
P/OP ratio4 22.51 35.52 16.26 20.50 14.61
Benchmarks
P/OP Ratio, Competitors
Comcast Corp. 10.98 10.61 9.07 10.12 10.62
Time Warner Inc. 9.29 9.96 7.67 11.46 8.74
Twenty-First Century Fox Inc. 8.37 8.59 10.30 14.27 13.51
Walt Disney Co. 11.26 11.01 14.90 13.36 13.17
P/OP Ratio, Sector
Media 11.41 11.69 10.98 12.13 11.47
P/OP Ratio, Industry
Consumer Services 16.74 14.68 14.07 13.77 13.49

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Charter Communications Inc.'s Annual Report.

2017 Calculations

3 Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 4,106,000,000 ÷ 238,506,060 = 17.22

4 P/OP ratio = Share price ÷ Operating profit per share
= 387.50 ÷ 17.22 = 22.51

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.'s P/OP ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.

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Price to Sales (P/S)

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

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 238,506,060 268,897,793 112,438,828 111,999,687 106,144,075
Selected Financial Data (USD $)
Revenues (in millions) 41,581  29,003  9,754  9,108  8,155 
Sales per share3 174.34 107.86 86.75 81.32 76.83
Share price1, 2 387.50 324.46 161.08 177.77 125.08
Ratio
P/S ratio4 2.22 3.01 1.86 2.19 1.63
Benchmarks
P/S Ratio, Competitors
Comcast Corp. 2.34 2.22 1.95 2.19 2.23
Time Warner Inc. 2.35 2.56 1.87 2.50 1.94
Twenty-First Century Fox Inc. 1.83 1.78 2.10 2.46 2.62
Walt Disney Co. 2.81 2.81 3.74 3.12 2.70
P/S Ratio, Sector
Media 2.37 2.46 2.44 2.53 2.33
P/S Ratio, Industry
Consumer Services 1.49 1.32 1.29 1.19 1.17

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Charter Communications Inc.'s Annual Report.

2017 Calculations

3 Sales per share = Revenues ÷ No. shares of common stock outstanding
= 41,581,000,000 ÷ 238,506,060 = 174.34

4 P/S ratio = Share price ÷ Sales per share
= 387.50 ÷ 174.34 = 2.22

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.'s P/S ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.

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Price to Book Value (P/BV)

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

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 238,506,060 268,897,793 112,438,828 111,999,687 106,144,075
Selected Financial Data (USD $)
Total Charter shareholders' equity (deficit) (in millions) 39,084  40,139  (46) 146  151 
Book value per share (BVPS)3 163.87 149.27 -0.41 1.30 1.42
Share price1, 2 387.50 324.46 161.08 177.77 125.08
Ratio
P/BV ratio4 2.36 2.17 136.37 87.92
Benchmarks
P/BV Ratio, Competitors
Comcast Corp. 2.88 3.31 2.78 2.86 2.84
Time Warner Inc. 2.59 3.09 2.23 2.80 1.93
Twenty-First Century Fox Inc. 3.32 3.57 3.53 4.50 4.27
Walt Disney Co. 3.76 3.61 4.41 3.39 2.68
P/BV Ratio, Sector
Media 2.96 3.12 3.44 3.36 2.86
P/BV Ratio, Industry
Consumer Services 5.81 5.02 5.07 4.31 3.86

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Charter Communications Inc.'s Annual Report.

2017 Calculations

3 BVPS = Total Charter shareholders' equity (deficit) ÷ No. shares of common stock outstanding
= 39,084,000,000 ÷ 238,506,060 = 163.87

4 P/BV ratio = Share price ÷ BVPS
= 387.50 ÷ 163.87 = 2.36

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's required rate of return and its actual rate of return. Charter Communications Inc.'s P/BV ratio increased from 2015 to 2016 and from 2016 to 2017.

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