Charter Communications

Methodology

Charter Communications' cable broadband and video services face secular headwinds from cord-cutting offset by broadband growth and mobile service expansion. The company's high-quality cable footprint provides defensible broadband monopolies in key markets. This calculation is moderately reliable for Charter given recurring revenue characteristics, though video subscriber losses, competitive fiber builds, and heavy debt load create complexity requiring careful normalization.

Methodology

Charter's PEG ratio can range from 1.0-2.0 depending on perceptions of broadband growth sustainability versus video decline and wireless opportunity. The company's capital intensity and leverage limit multiple expansion despite strong broadband positions. Compare to other cable operators and fiber competitors to assess whether Charter's market positions and mobile strategy justify valuations given the cord-cutting and competitive fiber build-out pressures.

Methodology

Charter Communications does not currently pay a dividend, prioritizing debt reduction and network investment over capital returns. The PEGY is not applicable without a dividend. For Charter investors, focus remains on broadband subscriber trends, mobile penetration, free cash flow generation after heavy capital spending, and deleveraging progress rather than traditional income metrics.