<div id="readability-page-1"><div><ul> <li>For investors considering whether Charter Communications at around US$235.97 is priced for a rebound or still has more room to fall, this article focuses squarely on what the current share price might imply about value.</li> <li>The stock is up 5.7% over the last week and 6.0% over the past month, yet the 1-year return is a 30.4% decline and the 5-year return is a 64.1% decline. This combination can influence how investors think about both risk and future potential.</li> <li>Recent market attention has focused on Charter as investors weigh its long-term position in U.S. broadband and pay TV, as well as ongoing competitive and regulatory pressures in the sector. These themes help frame why a stock with a 12.8% year-to-date return can still show a 29.8% decline over 3 years.</li> <li>Charter currently holds a 5 out of 6 valuation score. This raises the question of how different methods such as DCF, multiples, and peer comparisons line up on value, and whether there is an even deeper way to think about valuation that will be covered at the end of this article.</li> </ul> Find out why Charter Communications's -30.4% return over the last year is lagging behind its peers. <h3>Approach 1: Charter Communications Discounted Cash Flow (DCF) Analysis</h3> A Discounted Cash Flow, or DCF, model takes a company’s expected future cash flows and discounts them back to today to estimate what the business could be worth right now. For Charter Communications, the model uses a 2 Stage Free Cash Flow to Equity approach, starting from last twelve month free cash flow of about $4.7b. Analyst projections and subsequent extrapolations extend out ten years, with forecast free cash flow reaching $10.8b in 2030 and then growing at gradually moderating rates. Each of these future cash flows is discounted back into today’s dollars using Simply Wall St’s assumptions. On this basis, the DCF model arrives at an estimated intrinsic value of about $801.92 per share. Compared with the recent share price of around $235.97, the DCF output suggests the stock is 70.6% undervalued according to this specific set of projections and discount assumptions. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Charter Communications is undervalued by 70.6%. Track this in your watchlist or portfolio, or discover 58 more high quality undervalued stocks. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/03b4ed20-e01f-4d49-b448-81fb5500db9f/chart/dcf/query-ZGF0ZT0yMDI2LTA0LTE3?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/03b4ed20-e01f-4d49-b448-81fb5500db9f/chart/dcf/query-ZGF0ZT0yMDI2LTA0LTE3"/><figcaption>CHTR Discounted Cash Flow as at Apr 2026</figcaption></figure> Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Charter Communications. <h3>Approach 2: Charter Communications Price vs Earnings</h3> For a profitable company, the P/E ratio is a useful way to see how much investors are currently paying for each dollar of earnings. This makes it a straightforward cross check against the DCF output you saw earlier. What counts as a &#34;normal&#34; P/E depends on how the market views a company’s growth prospects and risk. Higher expected growth and lower perceived risk can support a higher multiple, while lower growth expectations or higher risk usually point to a lower one. Charter Communications currently trades on a P/E of about 5.95x. This sits below the Media industry average P/E of about 15.26x and the broader peer average of about 28.95x. Simply Wall St’s Fair Ratio for Charter, at 21.23x, is a proprietary estimate of what the P/E might be given factors such as earnings growth, profit margins, industry, market capitalization and risk profile. This Fair Ratio can be more tailored than a simple comparison with peers or the industry because it adjusts for company specific characteristics rather than assuming all Media stocks deserve the same multiple. Comparing Charter’s current P/E of 5.95x with the Fair Ratio of 21.23x points to the shares trading below that Fair Ratio benchmark. Result: UNDERVALUED <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/03b4ed20-e01f-4d49-b448-81fb5500db9f/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA0LTE3?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/03b4ed20-e01f-4d49-b448-81fb5500db9f/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA0LTE3"/><figcaption>NasdaqGS:CHTR P/E Ratio as at Apr 2026</figcaption></figure> P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 19 top founder-led companies. <h3>Upgrade Your Decision Making: Choose your Charter Communications Narrative</h3> Earlier the article mentioned that there is an even better way to think about valuation, so here is Narratives, a simple way for you to attach a clear story about Charter Communications to the numbers you care about, such as fair value, future revenue, earnings and margins. A Narrative on Simply Wall St connects three pieces in one place: your view of the business, a financial forecast that reflects that view, and a resulting fair value that you can compare with the current share price to decide whether the stock looks expensive or cheap to you. These Narratives sit inside the Community page on Simply Wall St, where millions of investors share different views. The fair values inside each Narrative refresh as new information such as news, earnings or updated analyst scenarios is incorporated into revenue, margin or discount rate assumptions. For Charter, one investor might lean toward the bearish Fair Value of about US$150.00 that assumes revenue contraction and lower margins. Another might align with the more optimistic Fair Value of about US$479.00 that assumes modest revenue growth and higher profitability. Seeing those side by side can help you decide which story you find more reasonable at the current price. For Charter Communications however we'll make it really easy for you with previews of two leading Charter Communications Narratives: 🐂 Charter Communications Bull Case Fair Value: US$276.80 Gap to latest price: about 14.7% below this fair value based on the last close of US$235.97. Revenue growth used in this narrative: about 27.0%. <ul> <li>Focuses on Spectrum Mobile growth, converged network upgrades and bundling as key supports for earnings power and customer retention.</li> <li>Builds in analyst assumptions for modest revenue contraction, improving profit margins and rising earnings per share through to 2028.</li> <li>Ties these forecasts to an analyst consensus price target above the last close, while stressing the need to test those inputs against your own expectations.</li> </ul> 🐻 Charter Communications Bear Case Fair Value: US$150.00 Gap to latest price: about 57.3% above this fair value based on the last close of US$235.97. Revenue growth used in this narrative: about 1.7% annual decline. <ul> <li>Centers on broadband and video subscriber pressure, higher capital spending and regulatory risk as constraints on revenue and earnings.</li> <li>Assumes shrinking profit margins, lower earnings by 2029 and a relatively low future P/E multiple compared with the wider US Media sector.</li> <li>Anchors on a bearish price target below the last close and asks you to weigh that case against alternative views on growth, capital needs and leverage.</li> </ul> If you want to see how other investors are joining the dots between these storylines and their own assumptions, the full set of Narratives on Simply Wall St can help you stress test your view before committing fresh capital or making any changes to an existing position. See what the community is saying about Charter Communications. Do you think there's more to the story for Charter Communications? Head over to our Community to see what others are saying! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/03b4ed20-e01f-4d49-b448-81fb5500db9f/chart/quote-price/query-ZGF0ZT0yMDI2LTA0LTE3?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/03b4ed20-e01f-4d49-b448-81fb5500db9f/chart/quote-price/query-ZGF0ZT0yMDI2LTA0LTE3"/><figcaption>NasdaqGS:CHTR 1-Year Stock Price Chart</figcaption></figure> This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<div><h3>New: AI Stock Screener &amp; Alerts</h3>Our new AI Stock Screener scans the market every day to uncover opportunities.<div>• Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI CompaniesOr build your own from over 50 metrics.</div>Explore Now for Free</div></div></div>

CHTR

The article analyzes Charter Communications' stock, currently priced at $235.97, amidst a steep decline of 30.4% over the past year and 64.1% over five years. Despite a recent 5.7% weekly increase, the stock is deemed undervalued by 70.6% based on a Discounted Cash Flow (DCF) analysis, suggesting an intrinsic value of $801.92 per share. Additionally, Charter's P/E ratio of 5.95x is significantly lower than industry averages, indicating further undervaluation. The article encourages investors to consider various valuation methods and narratives to assess Charter's potential.

Is It Time To Reconsider Charter Communications (CHTR) After Its Steep Multi‑Year Share Price Slide?