Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Charter Communications Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Net income attributable to Charter shareholders
- The net income demonstrated a strong upward trend from 2019 to 2022, increasing from $1,668 million to $5,055 million. However, in 2023, there was a noticeable decline to $4,557 million, suggesting a possible slowdown or some challenges impacting profitability in the most recent year.
- Earnings before tax (EBT)
- EBT followed a similar pattern to net income, showing consistent growth from $2,431 million in 2019 to a peak of $7,462 million in 2022. In 2023, a decline to $6,854 million was recorded, indicating reduced pre-tax earnings that align with the dip observed in net income.
- Earnings before interest and tax (EBIT)
- EBIT reflected a steady increase over the five-year period, rising from $6,228 million in 2019 to $12,042 million in 2023. The growth was particularly notable between 2020 and 2022, but EBIT essentially plateaued in 2023, showing minimal increase compared to the previous year.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- The EBITDA figures showed consistent growth from $16,154 million in 2019 to $20,921 million in 2022, highlighting improving operational performance. In 2023, EBITDA slightly decreased to $20,738 million, indicating a marginal reduction in earnings before accounting for non-cash expenses, potentially signaling stabilizing operational results.
Enterprise Value to EBITDA Ratio, Current
Charter Communications Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 147,057) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 20,738) |
| Valuation Ratio | |
| EV/EBITDA | 7.09 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | 15.31 |
| Comcast Corp. | 6.00 |
| Meta Platforms Inc. | 20.81 |
| Netflix Inc. | 21.89 |
| Take-Two Interactive Software Inc. | — |
| Walt Disney Co. | 18.30 |
| EV/EBITDA, Sector | |
| Media & Entertainment | 21.61 |
| EV/EBITDA, Industry | |
| Communication Services | 17.51 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Charter Communications Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 147,057) | 160,595) | 197,065) | 205,933) | 191,615) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 20,738) | 20,921) | 19,770) | 17,854) | 16,154) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 7.09 | 7.68 | 9.97 | 11.53 | 11.86 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Alphabet Inc. | 17.01 | 14.66 | 18.08 | 20.84 | — | |
| Comcast Corp. | 7.10 | 9.60 | 8.45 | 10.36 | — | |
| Meta Platforms Inc. | 19.72 | 12.19 | 10.85 | 17.31 | — | |
| Netflix Inc. | 11.85 | 8.40 | 9.51 | 16.57 | — | |
| Take-Two Interactive Software Inc. | 38.51 | 14.86 | 19.06 | 19.30 | — | |
| Walt Disney Co. | 17.34 | 17.80 | 34.53 | 60.13 | 16.10 | |
| EV/EBITDA, Sector | ||||||
| Media & Entertainment | 15.63 | 12.92 | 14.63 | 18.68 | — | |
| EV/EBITDA, Industry | ||||||
| Communication Services | 12.96 | 11.75 | 11.59 | 14.52 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 147,057 ÷ 20,738 = 7.09
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a general declining trend over the examined period. Beginning at approximately $191.6 billion at the end of 2019, it increased slightly to around $205.9 billion by the end of 2020, marking the highest point in the series. Subsequently, EV decreased to $197.1 billion in 2021 and experienced a more pronounced decline during the final two years, reaching approximately $160.6 billion by the end of 2022 and further down to $147.1 billion by the end of 2023. This denotes a considerable reduction in overall market valuation after peaking in 2020.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA values displayed a consistent upward trajectory throughout the five-year span. Starting at $16.2 billion in 2019, the figure increased steadily each year, reaching $17.9 billion in 2020, $19.8 billion in 2021, and $20.9 billion in 2022. There was a slight decrease in 2023 to $20.7 billion, but overall EBITDA increased by approximately 28.5% from 2019 to 2023, indicating improving operational profitability and cash generation capabilities over time.
- EV/EBITDA Ratio
- The EV/EBITDA ratio demonstrated a clear downward trend from nearly 11.9 times at the end of 2019 to approximately 7.1 times by the conclusion of 2023. This ratio remained relatively stable between 2019 and 2020 but began to decline more sharply thereafter, reflecting a decreasing enterprise valuation relative to earnings. The reduction in this multiple suggests that the company's valuation has become more conservative in comparison to its earnings before interest, tax, depreciation, and amortization, possibly indicating changing market perceptions, improved EBITDA, or both.