Jul. 1 at 5:46 PM
$CHTR n
$800 2 years ago.
The business itself has not really done poorly -losing internet and video subscribers at a rate of 1-2% a year
growing their mobile subscribers 10-15% a year - Charter will finish their network upgrades within a couple pf years which should boost free cash flow 50% to around
$7-8 billion. Additionally,
PE of 3-4 At the current price that is a 25% annual buyback -
Due to the low p/e the stock doesn’t really seem risky. Even if earnings drop 80% long term - buybacks can still make this a 2-10 bagger.
7 billion FCF at 100 million shares would be 70 $ per shares.... which would make it a price to FCF of 2.....
let it go to a ratio of 6 and you have 3x....
