Is Charter Communications, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Charter Communications, Inc. moved from very attractive to fair. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 18, while the EV to EBITDA ratio is 9.22, and the PEG ratio is 1.14, indicating that the stock may not be priced favorably compared to its earnings growth potential.
In comparison to peers, Charter Communications has a P/E ratio of 6.6158, which suggests that it is trading at a premium relative to its industry peers. Additionally, the EV to EBITDA ratio for peers is 6.1044, further supporting the notion that Charter is overvalued. Over the past year, Charter has underperformed significantly, with a stock return of -22.81% compared to the S&P 500's return of 17.14%, reinforcing the valuation concerns.