Discounted Cash Flow (DCF) Analysis Unlevered

Charter Communications, Inc. (CHTR)

$384.31

-6.63 (-1.70%)

All numbers are in Millions, Currency in USD

Stock DCF: 1,476.29 | 384.31 | undervalue

Operating Data

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 (%)
EBITDA	15,268	15,830	17,400	19,104	20,127	20,513.37	21,639.60	22,827.65	24,080.94	25,403.03
EBITDA (%)
EBIT	4,950	5,904	7,696	9,759	11,224	9,107.33	9,607.34	10,134.81	10,691.23	11,278.20
EBIT (%)
Depreciation	10,318	9,926	9,704	9,345	8,903	11,406.04	12,032.25	12,692.85	13,389.71	14,124.83
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	551	3,483	998	601	645	1,516.49	1,599.75	1,687.58	1,780.23	1,877.97
Total Cash (%)
Account Receivables	1,733	2,227	2,201	2,579	2,921	2,713.91	2,862.91	3,020.09	3,185.90	3,360.81
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	758	786	763	724	870.02	917.78	968.17	1,021.32	1,077.40	1,136.55
Accounts Payable (%)
Capital Expenditure	-9,595	-7,140	-7,956	-7,555	553	-7,719.32	-8,143.12	-8,590.20	-9,061.82	-9,559.33
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 384.31
Beta	1.111
Diluted Shares Outstanding	164.43
Cost of Debt
Tax Rate	32.26
After-tax Cost of Debt	3.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.774
Total Debt	97,603
Total Equity	63,193.48
Total Capital	160,796.48
Debt Weighting	60.70
Equity Weighting	39.30
Wacc

Build Up Free Cash

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
EBITDA	15,268	15,830	17,400	19,104	20,127	20,513.37	21,639.60	22,827.65	24,080.94	25,403.03
EBIT	4,950	5,904	7,696	9,759	11,224	9,107.33	9,607.34	10,134.81	10,691.23	11,278.20
Tax Rate	27.05%	31.39%	25.10%	27.14%	32.26%	28.59%	28.59%	28.59%	28.59%	28.59%
EBIAT	3,611.21	4,050.96	5,763.95	7,109.95	7,603.50	6,503.76	6,860.82	7,237.50	7,634.85	8,054.02
Depreciation	10,318	9,926	9,704	9,345	8,903	11,406.04	12,032.25	12,692.85	13,389.71	14,124.83
Accounts Receivable	-	-494	26	-378	-342	207.09	-149	-157.18	-165.81	-174.91
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	28	-23	-39	146.02	47.77	50.39	53.15	56.07	59.15
Capital Expenditure	-9,595	-7,140	-7,956	-7,555	553	-7,719.32	-8,143.12	-8,590.20	-9,061.82	-9,559.33
UFCF	4,334.21	6,370.96	7,514.95	8,482.95	16,863.52	10,445.33	10,651.34	11,236.12	11,853.01	12,503.76
WACC
PV UFCF						9,913	9,593.35	9,604.29	9,615.25	9,626.22
SUM PV UFCF										48,352.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.37
Free cash flow (t + 1)	12,753.84
Terminal Value	378,452.08
Present Value of Terminal Value	291,357.36

Intrinsic Value

Enterprise Value	339,709.48
Net Debt	96,958
Equity Value	242,751.48
Shares Outstanding	164.43
Equity Value Per Share	1,476.29