| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 23.40 | n/a |
| Intrinsic value (DCF) | 1.82 | n/a |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
WideOpenWest, Inc. (NYSE: WOW) is a leading provider of high-speed data, cable television, and digital telephony services in the U.S., serving residential and business customers across six states. Founded in 2001 and headquartered in Englewood, Colorado, WOW operates in the competitive telecommunications sector, offering a range of services including basic and digital cable, cloud-based TV (WOW tv+), and fiber-based business solutions. With approximately 1.9 million homes passed and 532,900 customers as of 2021, WOW focuses on mid-sized markets where it can leverage its hybrid fiber-coaxial network to deliver reliable connectivity. The company differentiates itself through bundled services, streaming integrations (Netflix, Google Assistant), and competitive pricing. Despite challenges from cord-cutting trends and rising competition, WOW maintains a niche presence in underserved regions, positioning it as a potential consolidation target in the fragmented broadband industry.
WideOpenWest presents a high-risk, high-reward opportunity in the telecom sector. Its $361M market cap and 1.32 beta reflect volatility, while negative EPS (-$0.72) and $58.8M net loss in FY2023 raise concerns about profitability. However, $163.7M operating cash flow suggests underlying operational strength, though heavy capex ($215.8M) pressures free cash flow. The $1.04B debt load is a key risk, but zero dividend obligations provide flexibility. WOW’s valuation could appeal to investors betting on rural broadband demand or acquisition potential, given its footprint in growth markets like Florida and Georgia. Competitive pressures from fiber rollouts and streaming alternatives remain headwinds.
WOW competes in a fragmented broadband market dominated by national players and regional fiber providers. Its primary advantage lies in its hybrid fiber-coaxial infrastructure, which allows cost-efficient service delivery in secondary markets where large incumbents (e.g., Comcast) underinvest. The company’s WOW tv+ platform integrates streaming apps and cloud DVR, differentiating it from traditional cable but still lagging pure-play fiber providers in speed. WOW’s B2B services (metro Ethernet, SIP trunking) are modest compared to specialized competitors like Lumen. Pricing is competitive, but churn risk persists as customers migrate to fiber or wireless alternatives. Scale disadvantages limit marketing spend and technology upgrades versus giants like Charter. Strategic partnerships (e.g., Google integration) help retain customers, but network expansion is constrained by capital intensity. WOW’s survival likely hinges on either niche market execution or becoming an acquisition target for larger operators seeking regional density.