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 43,63445,76448,09751,68254,02256,987.9160,116.6663,417.1866,898.9170,571.79
Revenue (%)
EBITDA 15,26815,83017,40019,10420,12720,513.3721,639.6022,827.6524,080.9425,403.03
EBITDA (%)
EBIT 4,9505,9047,6969,75911,2249,107.339,607.3410,134.8110,691.2311,278.20
EBIT (%)
Depreciation 10,3189,9269,7049,3458,90311,406.0412,032.2512,692.8513,389.7114,124.83
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 5513,4839986016451,516.491,599.751,687.581,780.231,877.97
Total Cash (%)
Account Receivables 1,7332,2272,2012,5792,9212,713.912,862.913,020.093,185.903,360.81
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 758786763724870.02917.78968.171,021.321,077.401,136.55
Accounts Payable (%)
Capital Expenditure -9,595-7,140-7,956-7,555553-7,719.32-8,143.12-8,590.20-9,061.82-9,559.33
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 43,63445,76448,09751,68254,02256,987.9160,116.6663,417.1866,898.9170,571.79
EBITDA 15,26815,83017,40019,10420,12720,513.3721,639.6022,827.6524,080.9425,403.03
EBIT 4,9505,9047,6969,75911,2249,107.339,607.3410,134.8110,691.2311,278.20
Tax Rate 27.05%31.39%25.10%27.14%32.26%28.59%28.59%28.59%28.59%28.59%
EBIAT 3,611.214,050.965,763.957,109.957,603.506,503.766,860.827,237.507,634.858,054.02
Depreciation 10,3189,9269,7049,3458,90311,406.0412,032.2512,692.8513,389.7114,124.83
Accounts Receivable --49426-378-342207.09-149-157.18-165.81-174.91
Inventories ----------
Accounts Payable -28-23-39146.0247.7750.3953.1556.0759.15
Capital Expenditure -9,595-7,140-7,956-7,555553-7,719.32-8,143.12-8,590.20-9,061.82-9,559.33
UFCF 4,334.216,370.967,514.958,482.9516,863.5210,445.3310,651.3411,236.1211,853.0112,503.76
WACC
PV UFCF 9,9139,593.359,604.299,615.259,626.22
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