DCF Tool

CHTR

Charter Communications Inc. – Cable and Other Subscription Programming
Charter Communications, Inc. is a leading broadband connectivity company and cable operator serving more than 31 million customers in 41 states through its Spectrum brand. Over an advanced communications network, the company offers a full range of state-of-the-art residential and business services including Spectrum Internet®, TV, Mobile and Voice.
Analysis Results
Intrinsic Value $11,000.98
Latest Price $479.03
Relative Value 96% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 37.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 37.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 19.9 19.1
2023 27.5 25.2
2024 37.9 33.3
2025 52.3 43.9
2026 72.1 58.0
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 2160 billion. This corresponds to a present value of 1670 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 180 billion. Adding in the terminal value gives a total present value of 1850 billion.

There are presently 168.0 million outstanding shares, so the intrinsic value per share is 11000.98.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,132,000,000
Current Cash 1,202,000,000
Current Liabilities 24,916,000,000
Current Debt 5,994,000,000
Non-Cash Working Capital (NCWC) -12,992,000,000
Change in NCWC -7,033,000,000
EBIT 21,710,000,000
Tax Provision 2,136,000,000
Depreciation and Amortization 18,690,000,000
Capital Expenditure -15,270,000,000
Unlevered Free Cash Flow 14,467,338,134
Current Assets 3,906,000,000
Current Cash 998,000,000
Current Liabilities 9,875,000,000
Current Debt 1,008,000,000
Non-Cash Working Capital (NCWC) -5,959,000,000
Change in NCWC -62,000,000
EBIT 8,463,000,000
Tax Provision 626,000,000
Depreciation and Amortization 9,704,000,000
Capital Expenditure -7,415,000,000
Unlevered Free Cash Flow 9,458,517,433
Current Assets 6,471,000,000
Current Cash 3,483,000,000
Current Liabilities 12,385,000,000
Current Debt 3,500,000,000
Non-Cash Working Capital (NCWC) -5,897,000,000
Change in NCWC 729,000,000
EBIT 6,477,000,000
Tax Provision 439,000,000
Depreciation and Amortization 9,926,000,000
Capital Expenditure -7,195,000,000
Unlevered Free Cash Flow 8,767,356,643
Current Assets 2,730,000,000
Current Cash 551,000,000
Current Liabilities 12,095,000,000
Current Debt 3,290,000,000
Non-Cash Working Capital (NCWC) -6,626,000,000
Change in NCWC 485,000,000
EBIT 5,379,000,000
Tax Provision 180,000,000
Depreciation and Amortization 10,318,000,000
Capital Expenditure -9,125,000,000
Unlevered Free Cash Flow 6,482,729,537
Current Assets 2,555,000,000
Current Cash 621,000,000
Current Liabilities 11,090,000,000
Current Debt 2,045,000,000
Non-Cash Working Capital (NCWC) -7,111,000,000
Change in NCWC -1,332,000,000
EBIT 4,558,000,000
Tax Provision -9,087,000,000
Depreciation and Amortization 10,588,000,000
Capital Expenditure -8,681,000,000
Unlevered Free Cash Flow 5,133,000,000
Current Assets 3,300,000,000
Current Cash 1,535,000,000
Current Liabilities 9,572,000,000
Current Debt 2,028,000,000
Non-Cash Working Capital (NCWC) -5,779,000,000
Change in NCWC -4,147,000,000
EBIT 3,583,000,000
Tax Provision -2,925,000,000
Depreciation and Amortization 6,907,000,000
Capital Expenditure -5,325,000,000
Unlevered Free Cash Flow 1,018,000,000
Current Assets 345,000,000
Current Cash 5,000,000
Current Liabilities 1,972,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,632,000,000
Change in NCWC -365,000,000
EBIT 1,275,000,000
Tax Provision -60,000,000
Depreciation and Amortization 2,125,000,000
Capital Expenditure -1,840,000,000
Unlevered Free Cash Flow 1,195,000,000
Current Assets 371,000,000
Current Cash 3,000,000
Current Liabilities 1,635,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,267,000,000
Change in NCWC -101,000,000
EBIT 1,033,000,000
Tax Provision 236,000,000
Depreciation and Amortization 2,102,000,000
Capital Expenditure -2,221,000,000
Unlevered Free Cash Flow 577,000,000
Current Assets 322,000,000
Current Cash 21,000,000
Current Liabilities 1,467,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,166,000,000
Change in NCWC -268,000,000
EBIT 956,000,000
Tax Provision 120,000,000
Depreciation and Amortization 1,854,000,000
Capital Expenditure -1,825,000,000
Unlevered Free Cash Flow 717,000,000
Current Assets 333,000,000
Current Cash 7,000,000
Current Liabilities 1,224,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -898,000,000
Change in NCWC -113,000,000
EBIT 931,000,000
Tax Provision 257,000,000
Depreciation and Amortization 1,713,000,000
Capital Expenditure -1,745,000,000
Unlevered Free Cash Flow 786,000,000

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