Charter Communications DCF Stock Analysis.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 3.95%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.62%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 7.5%

Historical Data

Revenue growth in the last 10 years (CAGR): 2.88%

Earnings growth in the last 10 years (CAGR): 3.54%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): -4.09%

Future Assumptions

End of Year FCF growth: 3%

Growth until end of 2026: 3%

Growth until end of 2034: 3%

Perpetual growth: 2.5%

Net Debt: 98.492B

Outstanding Stock Options Present Value Assumption: $0.391B

Assumptions used for the Black & Scholes model:

• Stock Price: $230
• Strike Price: $395.99
• Time to expiration: 5 years
• Risk Free Rate: 3.95%
• Volatility: 25%

Restricted Stock Units Present Value Assumption: $3.480B

Stock Valuation based on these assumptions: $144

Last update 02/17/2026

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Charter Communications (CHTR) and I don’t plan to add a position in the coming days.