Charter Communications (CHTR)
Communications · NASDAQ · US
Fundamentals
Valuation and ratings
Charter Communications trades at $131.24, which is 119% below the $287.61 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 57 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 3.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Charter Communications
Charter Communications, Inc. operates as a broadband connectivity company in the United States. The company offers subscription-based internet, mobile, video, and voice services; broadband connectivity services, including fixed internet, WiFi, and mobile; Spectrum internet products; advanced WiFi services; and in-home WiFi, which provides customers with high performance wireless routers and managed WiFi services to enhance their wireless internet experience. It also offers wireline voice communications services using voice over internet protocol technology; Call Guard, an advanced caller ID and robocall blocking solution; video programming and video services, including access to an interactive programming guide with parental controls, video on demand and pay-per-view services; and broadband communications solutions, such as internet access, data networking, fiber connectivity, video entertainment, and business telephone services. In addition, the company provides advertising services on cable television networks, various streaming services, and advertising platforms for local, regional and national businesses. Further, it offers production and technical services for regional sports networks; owns and manages local news channels, including Spectrum News NY1® and Spectrum News SoCal; and delivers broadband connectivity solutions to apartments, single-family gated communities, off-campus student housing, senior residences, and RV parks. The company was founded in 1993 and is headquartered in Stamford, Connecticut.
CHTR passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
20 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Dodge & Cox, DODGE & COX$3.16B · 1.7% of book
- Bill Nygren, HARRIS ASSOCIATES L P$1.72B · 1.2% of book
- Capital Research Global, Capital Research Global Investors$1.14B · 0.2% of book
- First Eagle, First Eagle Investment Management, LLC$772.88M · 1.3% of book
- Veritas Asset Management, Veritas Asset Management LLP$240.29M · 4.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Charter Communications (CHTR) undervalued?
Against our discounted cash flow estimate of $287.61, CHTR at $131.24 is 119% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own CHTR?
20 of the institutions we track reported a position in CHTR in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is CHTR's P/E ratio?
CHTR trades at 3.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for CHTR, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.