| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 67.50 | -61 |
| Graham Formula | 269.30 | 55 |
Charter Communications Inc. (CQD.DE) is a leading broadband communications company headquartered in Stamford, Connecticut, providing essential connectivity services across the United States. As a major cable operator, Charter delivers high-speed internet, video, and voice services to over 26 million residential and business customers. The company also offers advanced solutions such as video-on-demand (VOD), high-definition (HD) television, digital video recording (DVR), and fiber-based enterprise communications. Additionally, Charter owns and operates regional sports networks and local lifestyle channels, while providing advertising services and home security solutions. Operating in the competitive Media & Entertainment sector under the broader Technology industry, Charter leverages its extensive infrastructure to maintain a strong market presence. With a workforce of 98,000 employees, the company continues to innovate in broadband and digital services, positioning itself as a key player in the evolving telecommunications landscape.
Charter Communications presents a mixed investment profile. On the positive side, the company generates substantial revenue (€55.1 billion) and net income (€5.1 billion), with a solid diluted EPS of €34.97. Its strong operating cash flow (€14.4 billion) supports ongoing infrastructure investments, though high capital expenditures (€11.3 billion) and significant total debt (€97.2 billion) raise concerns about financial leverage. The absence of dividends may deter income-focused investors, while the lack of disclosed market cap and beta limits risk assessment. Charter's competitive positioning in broadband and enterprise services offers growth potential, but regulatory pressures and intense competition in the telecom sector pose risks. Investors should weigh its operational strengths against its high debt load and capital intensity.
Charter Communications competes in the highly saturated U.S. broadband and cable market, where differentiation hinges on network quality, pricing, and bundled services. Its competitive advantage lies in its extensive cable infrastructure, which supports high-speed internet and video services for millions of customers. The company’s ownership of regional sports networks provides exclusive content, enhancing its value proposition. However, Charter faces stiff competition from telecom giants expanding into fiber-optic networks and streaming services. Its lack of a wireless offering (unlike Comcast and AT&T) limits cross-selling opportunities. The company’s enterprise segment, offering fiber and managed IT solutions, competes with specialized business service providers. While Charter’s scale allows cost efficiencies, its high debt could constrain flexibility in pricing wars or technological upgrades. The shift toward streaming and cord-cutting trends pressures its traditional video business, necessitating continued investment in broadband and digital services to maintain relevance.