According to my quick back of the envelope valuation, CHTR is possibly undervalued. The stock closed yesterday at $199.96 and I have a $332.91 target price on the stock. So, including my conservative margin of safety, this means the stock has about a 66% upside.
The only worrying and troubling thing is Charter Communications has billions and billions og dollars of debt on its current balance.
I understand that this particular industry is very capital intensive, but this it still gives me pause. There is also the risk that in the medium term, Charter could lose customers to other companies in the industry.
However, I'm still going to undertake a deep dive and do a full due diligence on the company and its stock. And, I must admit that when I crunch the numbers, I'm going to be very conservative in my estimates.
😊😊😊😊