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Charter Communications (CHTR) Valuation Check After Mixed Near Term And One Year Shareholder Returns

Simply Wall St · 5d ago

Charter Communications (CHTR) has been on many investors’ watchlists after a mixed return profile. The stock has shown a gain over the past month but a decline over the past three months, along with weaker one-year and multi-year performance.

See our latest analysis for Charter Communications.

That modest 2.7% 30 day share price return to US$210.62 comes after a 23.2% 90 day share price decline and a 39.4% drop in 1 year total shareholder return. This suggests momentum has been fading as investors reassess the risk and growth profile.

If Charter’s recent swings have you thinking more broadly about opportunities, it could be worth scanning fast growing stocks with high insider ownership as a starting point for other ideas.

With a 39.4% 1 year total return decline, an indicated intrinsic discount of around 74%, and a large gap to the average analyst price target, is Charter quietly cheap or is the market already bracing for weaker growth?

Most Popular Narrative: 33.1% Undervalued

Compared with Charter Communications' last close at US$210.62, the most widely followed narrative anchors on a higher fair value estimate, built on specific views of revenue, margins and future earnings power.

Charter Communications is rapidly increasing its Spectrum Mobile line growth, providing a strong contribution to EBITDA and expected revenue growth due to its market-leading mobile connectivity. Charter is leveraging its fully converged network and expanding CBRS deployment to handle increasing broadband and handset data usage efficiently, which should reduce costs and improve margins.

Read the complete narrative.

Want to see what sits behind that margin story? The narrative leans on gradual revenue shifts, firmer profitability and a future earnings multiple that sits well below many media peers. Curious how those moving parts combine into a single fair value line? The full narrative joins the dots between today’s price, future cash flows and an 11.37% discount rate.

Result: Fair Value of $314.94 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that story could easily be knocked off course if fiber competitors chip away at broadband share or if Charter’s US$93.6b debt pile limits its room to move.

Find out about the key risks to this Charter Communications narrative.

Build Your Own Charter Communications Narrative

If you see the story differently or would rather evaluate the numbers yourself, you can build a fresh Charter view in just a few minutes with Do it your way.

A great starting point for your Charter Communications research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If you are weighing Charter against other possibilities, do not stop here, a wider watchlist of ideas can sharpen your next move and highlight fresh angles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.