Discounted Cash Flow (DCF) Analysis Unlevered

Charter Communications, Inc. (CHTR)

$ 565
+10.00 (+1.80%)
All numbers are in Millions, Currency in USD
Stock DCF: 2,708.16 | 565 | undervalue

Operating Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 29,00341,58143,63445,76448,09755,105.3063,134.7872,334.2682,874.2194,949.96
Revenue (%)
EBITDA 10,00314,48615,26815,83017,40019,296.3322,108.0425,329.4429,020.2333,248.82
EBITDA (%)
EBIT 3,0963,8984,9505,9047,6966,645.217,613.498,722.879,993.8911,450.12
EBIT (%)
Depreciation 6,90710,58810,3189,9269,70412,651.1214,494.5416,606.5719,026.3421,798.70
Depreciation (%)

Balance Sheet Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Cash 1,5356215513,4839981,954.542,239.342,565.632,939.483,367.79
Total Cash (%)
Account Receivables 1,4321,6351,7332,2272,2012,455.892,813.743,223.743,693.474,231.66
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 454740758786763924.231,058.911,213.201,389.981,592.51
Accounts Payable (%)
Capital Expenditure -33,532-7,870-9,595-7,140-7,956-20,794.05-23,823.99-27,295.42-31,272.69-35,829.49
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 565
Beta 0.944
Diluted Shares Outstanding 209.27
Cost of Debt
Tax Rate 25.10
After-tax Cost of Debt 3.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.265
Total Debt 82,987
Total Equity 118,239.38
Total Capital 201,226.38
Debt Weighting 41.24
Equity Weighting 58.76
Wacc

Build Up Free Cash

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 29,00341,58143,63445,76448,09755,105.3063,134.7872,334.2682,874.2194,949.96
EBITDA 10,00314,48615,26815,83017,40019,296.3322,108.0425,329.4429,020.2333,248.82
EBIT 3,0963,8984,9505,9047,6966,645.217,613.498,722.879,993.8911,450.12
Tax Rate -329.51%-862.55%27.05%31.39%25.10%-221.70%-221.70%-221.70%-221.70%-221.70%
EBIAT 13,297.7037,520.153,611.214,050.965,763.9521,377.9624,492.9728,061.8932,150.8336,835.59
Depreciation 6,90710,58810,3189,9269,70412,651.1214,494.5416,606.5719,026.3421,798.70
Accounts Receivable --203-98-49426-254.89-357.85-410-469.74-538.18
Inventories ----------
Accounts Payable -2861828-23161.23134.67154.30176.78202.54
Capital Expenditure -33,532-7,870-9,595-7,140-7,956-20,794.05-23,823.99-27,295.42-31,272.69-35,829.49
UFCF -13,327.3040,321.154,254.216,370.967,514.9513,141.3714,940.3517,117.3319,611.5222,469.15
WACC
PV UFCF 12,502.4913,522.9814,740.2216,067.0217,513.24
SUM PV UFCF 74,345.95

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.11
Free cash flow (t + 1) 22,918.54
Terminal Value 736,930.42
Present Value of Terminal Value 574,389.25

Intrinsic Value

Enterprise Value 648,735.20
Net Debt 81,989
Equity Value 566,746.20
Shares Outstanding 209.27
Equity Value Per Share 2,708.16