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Charter CommunicationsFRA:CQD +2.44%69 EV-to-EBIT is 9.57 as of Aug. 17, 2026, which is 63% below its 10-year median of 25.67. GuruFocus rates FRA:CQD with a GF Score™ of 69/100 and a GF Value™ of €317.05 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 285 Telecommunication Services companies, Charter Communications ranks better than 68.07% on this metric.
Charter Communications (FRA:CQD) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Charter Communications's Enterprise Value for the quarter that ended in Jun. 2026 was €102,252 Mil.
Charter Communications's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €10,827 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:CQD vs TIGO, GSAT, LUMN: EV-to-EBIT Comparison
For the Telecom Services subindustry, Charter Communications's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Charter Communications EV-to-EBIT vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Charter Communications's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Charter Communications's EV-to-EBIT falls into.
Charter Communications's current Enterprise Value is €103,652 Mil.
Charter Communications's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €10,827 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Charter Communications (FRA:CQD) has a EV-to-EBIT of 9.57 as of Aug. 17, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Charter Communications and its competitors. This is 63% below median its historical median of 25.67. Over the past decade, Charter Communications' EV-to-EBIT has ranged from 9.22 to 91.43. According to the industry distribution chart, Charter Communications ranks #91 out of 285 companies in the Telecommunication Services industry, placing it in the top 31.9%.
Is Charter Communications' EV-to-EBIT too high?
Charter Communications' current EV-to-EBIT of 9.57 is 63% below median its 10-year median of 25.67. Over the past 10 years, this metric has ranged from a low of 9.22 to a high of 91.43. The Telecommunication Services industry median EV-to-EBIT is 13.35. Charter Communications' value of 9.57 is 28.3% below this industry median. Based on the distribution chart, Charter Communications ranks #91 out of 285 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Charter Communications has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Charter Communications' EV-to-EBIT compare to TIGO and GSAT?
According to the Telecommunication Services industry distribution chart, Charter Communications ranks #91 out of 285 companies for EV-to-EBIT. This puts Charter Communications in the upper half of its industry. The industry median EV-to-EBIT is 13.35. Charter Communications' value of 9.57 is 28.3% below this benchmark. Historically, Charter Communications' own EV-to-EBIT has ranged from 9.22 to 91.43 over the past decade. While the company's 10-year median is 25.67 vs. the industry median of 13.35, Charter Communications has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Telecommunication Services company?
The median EV-to-EBIT among Telecommunication Services companies is 13.35, based on 285 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Charter Communications's current EV-to-EBIT of 9.57 is 28.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Charter Communications and its competitors. For the Telecommunication Services industry, the median EV-to-EBIT is 13.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charter Communications's current EV-to-EBIT is 9.57, which is 63% below median its own 10-year median of 25.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charter Communications stock overvalued right now?
Based on GuruFocus' analysis, Charter Communications (FRA:CQD) is currently considered Possible Value Trap. The stock's GF Value™ is €317.05, compared to a current price of €132.86 — trading 58.1% below its estimated fair value. The current EV-to-EBIT is 9.57, which is 63% below median its 10-year median of 25.67 and 28.3% below the Telecommunication Services industry median of 13.35. Charter Communications' overall GF Score™ is 69/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Charter Communications (FRA:CQD), the current EV-to-EBIT is 9.57 as of Aug. 17, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Charter Communications (FRA:CQD) Overvalued in 2026?
Based on GuruFocus' analysis, Charter Communications stock appears to be undervalued.
The current stock price of €132.86 is trading 58.1% below its estimated GF Value™ of €317.05.
GuruFocus considers Charter Communications to be Possible Value Trap.
Key valuation signals for FRA:CQD:
EV-to-EBIT: 9.57 (63% below median its 10-year median of 25.67)
GF Value™: €317.05 vs. price of €132.86 (58.1% below fair value)
Industry Position: 28.3% below the Telecommunication Services median (#91 of 285)
No single metric tells the full story. See the FRA:CQD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 59 million US homes and businesses, around 35% of the country. Across this footprint, Charter serves 29 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest US cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (Los Angeles Lakers), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1. Charter plans to acquire cable peer Cox.
69GF Score
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