Is Liberty Broadband Corp. overvalued or undervalued?

Jun 25 2025 09:09 AM IST
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As of May 7, 2025, Liberty Broadband Corp. is considered overvalued with a P/E ratio of 12 and an EV to EBITDA of 52.80, despite a respectable ROE of 10.67%, as it trades at a premium compared to peers and has shown a long-term decline of 27.10% over five years.
As of 7 May 2025, Liberty Broadband Corp. has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 12, an EV to EBITDA of 52.80, and a PEG ratio of 0.33, which suggests that while growth may be anticipated, the current price does not justify the earnings potential.

In comparison to peers, Liberty Broadband Corp. has a P/E ratio of 11.65 and an EV to EBITDA of 50.43, indicating that it is trading at a premium relative to its industry. Notably, the company's return on equity (ROE) stands at 10.67%, which is respectable but does not sufficiently support its high valuation. Additionally, while the stock has outperformed the S&P 500 over the past year with a return of 77.41% compared to 10.26%, the long-term performance shows a decline of 27.10% over five years, reinforcing concerns about its current valuation.
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