Using the industry peer median P/E multiple (trailing + forward), Charter Communications, Inc. (CHTR) has a fair value of $450.58 based on 4 comparable companies in the Telecommunications Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Charter Communications, Inc.CHTR | 30,092 | 6.0x | 5.0x |
| T-Mobile US, Inc.TMUS | 237,056 | 21.8x | 20.4x |
| Verizon Communications Inc.VZ | 214,385 | 12.5x | 10.4x |
| AT&T Inc.T | 205,842 | 9.6x | 12.7x |
| Comcast CorporationCMCSA | 104,780 | 5.3x | 7.8x |
| Industry Median | 11.0x | 11.5x | |
| (*) Profit after tax | 4,987 | 5,994 | |
| Equity Value | 55,033 | 69,097 | |
| (/) Outstanding shares | 138 | 138 | |
| Fair Price | $400 | $502 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.