Discounted Cash Flow (DCF) Analysis Levered

Charter Communications, Inc. (CHTR)

$479.03

+4.46 (+0.94%)
All numbers are in Millions, Currency in USD
Stock DCF: 562.78 | 479.03 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 41,58143,63445,76448,09751,68254,572.3757,624.3960,847.1064,250.0567,843.30
Revenue (%)
Operating Cash Flow 11,95411,76711,74814,56216,23915,616.9116,490.3017,412.5418,386.3519,414.63
Operating Cash Flow (%)
Capital Expenditure -7,870-9,595-7,140-7,956-7,555-9,569.62-10,104.81-10,669.93-11,266.66-11,896.76
Capital Expenditure (%)
Free Cash Flow 4,0842,1724,6086,6068,6846,047.296,385.496,742.607,119.697,517.87

Weighted Average Cost Of Capital

Share price $ 479.03
Beta 0.935
Diluted Shares Outstanding 209.27
Cost of Debt
Tax Rate 27.14
After-tax Cost of Debt 3.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.202
Total Debt 91,830
Total Equity 100,248.16
Total Capital 192,078.16
Debt Weighting 47.81
Equity Weighting 52.19
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 41,58143,63445,76448,09751,68254,572.3757,624.3960,847.1064,250.0567,843.30
Operating Cash Flow 11,95411,76711,74814,56216,23915,616.9116,490.3017,412.5418,386.3519,414.63
Capital Expenditure -7,870-9,595-7,140-7,956-7,555-9,569.62-10,104.81-10,669.93-11,266.66-11,896.76
Free Cash Flow 4,0842,1724,6086,6068,6846,047.296,385.496,742.607,119.697,517.87
WACC
PV LFCF 4,438.524,451.274,464.074,476.904,489.76
SUM PV LFCF 28,882.83

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.29
Free cash flow (t + 1) 7,668.22
Terminal Value 233,076.72
Present Value of Terminal Value 180,120.55

Intrinsic Value

Enterprise Value 209,003.39
Net Debt 91,229
Equity Value 117,774.39
Shares Outstanding 209.27
Equity Value Per Share 562.78