On 12 Nov 2026 our base value for Charter Communications is $499.61 a share, 276.6% above its $132.66 close; 1 of 1 valuation methods put it above the price.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $499.61 | +276.6% | free cash flow $3.93bn, growth 0.99% for 5 years, then fading to 3% over 5 more, discounted at 9.13%; stress floor $368.76 |
| Exit multiple (P/E) | — | — | no exit multiple: the five-year median of 11.5x is 3.8x the 3.0x this name trades at today (limit 1.5x) — the market has re-rated the name, so its own history prices a business it is no longer paid for. The forward PE is not a substitute: it is today's price divided by earnings, and an anchor built from it can only restate the price |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 0.74 (5 years of monthly returns against the S&P 500; standard error 0.34) |
| Peer beta | 1.00 (median of 19 S&P 500 Communication Services companies) |
| Blend of own and peers | 0.83 (64% own, 36% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 0.89 (0.67 × 0.83 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 9.13% |
Free cash flow grows 0.99% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $3.93bn | — | — |
| Year 1 | 0.99% | $3.97bn | 0.9163 | $3.64bn |
| Year 2 | 0.99% | $4.01bn | 0.8396 | $3.36bn |
| Year 3 | 0.99% | $4.05bn | 0.7693 | $3.11bn |
| Year 4 | 0.99% | $4.09bn | 0.7049 | $2.88bn |
| Year 5 | 0.99% | $4.13bn | 0.6459 | $2.67bn |
| Year 6 | 1.32% | $4.18bn | 0.5919 | $2.48bn |
| Year 7 | 1.66% | $4.25bn | 0.5423 | $2.31bn |
| Year 8 | 1.99% | $4.34bn | 0.4969 | $2.15bn |
| Year 9 | 2.33% | $4.44bn | 0.4553 | $2.02bn |
| Year 10 | 2.67% | $4.56bn | 0.4172 | $1.90bn |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (9.13% − 3%) | $76.48bn |
| Terminal value in today's money | $31.91bn |
| Present value of years 1–10 | $26.52bn |
| Total present value | $58.43bn |
| Shares outstanding | 116.94m |
| Value per share = total ÷ shares | $499.61 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth -4.01% | Growth 0.99% | Growth 5.99% |
|---|---|---|---|
| 8.13% | $434.81 | $594.73 | $810.55 |
| 9.13% | $368.98 | $499.61 | $675.03 |
| 10.13% | $321.38 | $431.08 | $577.65 |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 0.74 | 8.46% | $560.01 |
| Peer beta | 1.00 | 9.63% | $463.11 |
| Adjusted beta (used) | 0.89 | 9.13% | $499.61 |
The base value is the average of the methods kept in it:
| Method | Value |
|---|---|
| Discounted cash flow | $499.61 |
One method is kept, so the base value is its value: $499.61
Base value $499.61 a share
One-year price simulation: a 10% chance the price is below $57.07 and a 10% chance it is above $259.46 in a year; a 44% chance it is higher than today's $132.66, from 58.78% volatility. The simulation assumes the price drifts up at our discount rate of 9.13% a year.
At $132.66 the price implies free cash flow growing -21.1% a year for five years and then fading toward 3% over five more; its revenue has grown 1.0%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $109.29 | $526.26 |
| 9 Oct 2026 | $103.38 | $530.13 |
| 16 Oct 2026 | $110.11 | $463.79 |
| 23 Oct 2026 | $108.61 | $470.03 |
| 30 Oct 2026 | $111.49 | $468.31 |
| 6 Nov 2026 | $118.07 | $521.50 |
| 12 Nov 2026 | $132.66 | $499.61 |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
Run a full Desk Run on CHTR · Charter Communications company page · Call and put prices