Discounted Cash Flow (DCF) Analysis Levered

Charter Communications, Inc. (CHTR)

$293.16

-0.77 (-0.26%)
All numbers are in Millions, Currency in USD
Stock DCF: 531.79 | 293.16 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 45,76448,09751,68254,02254,60757,086.4559,678.4962,388.2165,220.9768,182.36
Revenue (%)
Operating Cash Flow 11,74814,56216,23914,92514,43316,147.0716,880.2317,646.6918,447.9419,285.58
Operating Cash Flow (%)
Capital Expenditure -7,140-7,956-7,555-8,823-10,943-9,491.58-9,922.55-10,373.09-10,844.08-11,336.46
Capital Expenditure (%)
Free Cash Flow 4,6086,6068,6846,1023,4906,655.496,957.687,273.607,603.867,949.12

Weighted Average Cost Of Capital

Share price $ 293.16
Beta 1.026
Diluted Shares Outstanding 151.97
Cost of Debt
Tax Rate 33.51
After-tax Cost of Debt 3.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.002
Total Debt 97,777
Total Equity 44,550.44
Total Capital 142,327.44
Debt Weighting 68.70
Equity Weighting 31.30
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 45,76448,09751,68254,02254,60757,086.4559,678.4962,388.2165,220.9768,182.36
Operating Cash Flow 11,74814,56216,23914,92514,43316,147.0716,880.2317,646.6918,447.9419,285.58
Capital Expenditure -7,140-7,956-7,555-8,823-10,943-9,491.58-9,922.55-10,373.09-10,844.08-11,336.46
Free Cash Flow 4,6086,6068,6846,1023,4906,655.496,957.687,273.607,603.867,949.12
WACC
PV LFCF 6,324.116,282.076,240.326,198.856,157.65
SUM PV LFCF 31,202.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.24
Free cash flow (t + 1) 8,028.61
Terminal Value 189,353.97
Present Value of Terminal Value 146,679.77

Intrinsic Value

Enterprise Value 177,882.76
Net Debt 97,068
Equity Value 80,814.76
Shares Outstanding 151.97
Equity Value Per Share 531.79