Added to YB: 2026-06-09
Pitch date: 2026-06-06
CHTR [bullish]
Charter Communications, Inc.
+9.33%
current return
Author Info
Divergent Capital is a self-taught value investor in the tradition of Graham, Buffett and Munger. Sign up for the newsletter.
Company Info
Charter Communications, Inc. operates as a broadband connectivity company in the United States. The company offers subscription-based internet, mobile, video, and voice services; broadband connectivity services, including fixed internet, WiFi, and mobile; Spectrum internet products; advanced WiFi services; and in-home WiFi, which provides customers with high performance wireless routers and managed WiFi services to enhance their wireless internet experience.
Market Cap
$16.7B
Pitch Price
$129.88
Price Target
473.00 (+233%)
Dividend
N/A
EV/EBITDA
5.28
P/E
3.64
EV/Sales
2.17
Sector
Media
Category
value
The Price of Pessimism: What the Market Implies and What the Evidence Supports for Charter Communications ($CHTR)
CHTR: Trades ~$132 vs $230-290 intrinsic value; market prices perpetual FCF decline despite flat EBITDA. Capex cliff = $3.7B FCF step-up; Cox deal accretive (struck $354 now ~$132); 35% normalized FCF yield powers buybacks. Base-case 3yr IRR +53%. Latent dividend re-rating lever recruits absent yield buyers. Risk: ~90% downside in structural-decline (see Altice USA). Barbell: discounted 4.4% 2061 senior secured bonds (~7% carry) + equity cuts left-tail loss to ~28%.
Read full article (2 min)