Discounted Cash Flow (DCF) Analysis Levered
Charter Communications, Inc. (CHTR)
$326.15
-7.19 (-2.16%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 43,634 | 45,764 | 48,097 | 51,682 | 54,022 | 56,987.91 | 60,116.66 | 63,417.18 | 66,898.91 | 70,571.79 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 11,767 | 11,748 | 14,562 | 16,239 | 14,925 | 16,180.38 | 17,068.72 | 18,005.82 | 18,994.38 | 20,037.21 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -9,595 | -7,140 | -7,956 | -7,555 | -8,823 | -9,697.47 | -10,229.88 | -10,791.52 | -11,384 | -12,009 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,172 | 4,608 | 6,606 | 8,684 | 6,102 | 6,482.91 | 6,838.84 | 7,214.30 | 7,610.38 | 8,028.21 |
Weighted Average Cost Of Capital
| Share price | $ 326.15 |
|---|---|
| Beta | 1.097 |
| Diluted Shares Outstanding | 164.43 |
| Cost of Debt | |
| Tax Rate | 32.26 |
| After-tax Cost of Debt | 3.15% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.817 |
| Total Debt | 97,898 |
| Total Equity | 53,630.02 |
| Total Capital | 151,528.02 |
| Debt Weighting | 64.61 |
| Equity Weighting | 35.39 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 43,634 | 45,764 | 48,097 | 51,682 | 54,022 | 56,987.91 | 60,116.66 | 63,417.18 | 66,898.91 | 70,571.79 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 11,767 | 11,748 | 14,562 | 16,239 | 14,925 | 16,180.38 | 17,068.72 | 18,005.82 | 18,994.38 | 20,037.21 |
| Capital Expenditure | -9,595 | -7,140 | -7,956 | -7,555 | -8,823 | -9,697.47 | -10,229.88 | -10,791.52 | -11,384 | -12,009 |
| Free Cash Flow | 2,172 | 4,608 | 6,606 | 8,684 | 6,102 | 6,482.91 | 6,838.84 | 7,214.30 | 7,610.38 | 8,028.21 |
| WACC | ||||||||||
| PV LFCF | 6,164.81 | 6,184.17 | 6,203.58 | 6,223.06 | 6,242.60 | |||||
| SUM PV LFCF | 31,018.23 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.16 |
| Free cash flow (t + 1) | 8,188.77 |
| Terminal Value | 259,138.35 |
| Present Value of Terminal Value | 201,501.74 |
Intrinsic Value
| Enterprise Value | 232,519.97 |
|---|---|
| Net Debt | 97,253 |
| Equity Value | 135,266.97 |
| Shares Outstanding | 164.43 |
| Equity Value Per Share | 822.62 |