Charter Communications, Inc. (CHTR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+865.3%

$1,114.24

vs $115.42 price

Levered DCF

$458.85

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.59

Distress zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	5.66×	9.65×	12.73×	10.83×	25.73×	41.74×	63.83×	53.87×
P/B	1.76×	3.15×	5.23×	6.01×	8.52×	5.65×	3.39×	1.82×
P/S	0.52×	0.89×	1.06×	1.01×	2.32×	2.8×	2.33×	1.52×
EV / EBITDA	5.89×	6.74×	7.5×	7.27×	10.67×	12.13×	11.34×	8.91×
Gross margin	46.3%	46.0%	39.0%	43.4%	39.9%	36.0%	32.6%	29.0%
Operating margin	24.4%	24.0%	22.9%	22.7%	21.0%	17.6%	14.5%	12.5%
Net margin	9.1%	9.2%	8.3%	9.4%	9.0%	6.7%	3.6%	2.8%
Current ratio	0.39×	0.31×	0.31×	0.33×	0.29×	0.4×	0.52×	0.23×
Debt / equity	6.05×	6.14×	8.86×	10.74×	6.54×	3.49×	2.55×	2.01×
Interest coverage	2.65×	2.53×	2.41×	2.69×	2.69×	2.2×	1.74×	1.54×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	31.1%	32.6%	41.1%	55.4%	33.1%	13.5%	5.3%	3.4%
Return on invested capital	7.2%	7.4%	7.0%	7.1%	6.8%	5.3%	3.9%	3.5%
Return on assets	3.2%	3.4%	3.1%	3.5%	3.3%	2.2%	1.1%	0.8%
Free cash flow yield	15.7%	6.4%	6.0%	11.1%	7.3%	4.9%	4.3%	3.3%
Earnings yield	17.7%	10.4%	7.9%	9.2%	3.9%	2.4%	1.6%	1.9%
Enterprise value	$124.9B	$144.3B	$155.5B	$152B	$211B	$216.5B	$183.3B	$138.5B
Net debt / EBITDA	4.56×	4.45×	4.7×	4.65×	4.61×	4.59×	4.75×	4.65×
Cash conversion cycle (days)	12	10	10	8	10	10	8	6