Liberty Broadband (LBRDK:NAS) Fundamental Valuation Report

Liberty Broadband (LBRDK:NAS) Fundamental Valuation Report

Fundamental Valuation Report

Liberty Broadband(LBRDK:NAS)

Communication Services:Entertainment

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$156.84 (USD) 03/24/2021

Weighted Valuation
$169.92 (USD)

Overall Rating
Undervalued by 8.3%

Valuation Models Adjusted Book Value: $160.20 (USD)
Comparables: $135.56 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Fairly valued on an Asset Valuation
According to Analyst consensus at $214.00 this stock is Undervalued

Company Overview (LBRDK:NAS USD)

Price 156.84
Range 155.00 – 158.14
52 week 101.31 – 164.99
Open 155.74
Vol / Avg. 1.26M/1.26M
Mkt cap 30.48B
P/E 72.28
Div/yield 0.00/0.00
EPS 2.17
Shares 195.32M
Beta 1.04

Company Description

Liberty Broadband Corp serves in the telecommunications industry in the United States. It provides cable services to both residential and small to medium businesses through its fiber, hybrid fiber, and coaxial cable infrastructure. The services provided by the company are residential services which include video services, internet services, voice services, and mobile services, commercial services which include small, and medium business and enterprise solutions, advertising services, and other services which include security and home management. The reportable segments of the company are GCI Holdings, Skyhook. The firm derives the majority of its revenue from GCI Holdings.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for LBRDK:NAS

Using a discounted cash flow model we generated an intrinsic value of $0.00 (USD) for LBRDK:NAS

Comparables Model

Using similar companies and price based ratios we generated a valuation of $135.56 (USD) for LBRDK:NAS. We also generated a valuation of $228.26 (USD) using other metrics and comparables.
The comparable companies were Roku (ROKU:NAS), Netflix (NFLX:NAS), DISH Network (DISH:NAS), Discovery (DISCK:NAS) and Live Nation Entertainment (LYV:NYS).

Company LBRDK:NAS End Date Value
Earnings/Share $2.17 (USD)
Book Value/Share $69.13 (USD)
Sales/Share $0.28 (USD)
Cash Flow/Share ($0.52) (USD)
EBITDA/Share $2.22 (USD)
Price Based on Comps Adjustment Factor (%)
$92.26 (USD) 0.0
$570.15 (USD) -73.9
$2.54 (USD) 0.0
($26.89) (USD) 0.0
$325.30 (USD) 0.0
LBRDK:NAS Ratios Used Average Values ROKU:NAS NFLX:NAS DISH:NAS DISCK:NAS LYV:NYS
72.28 PE Ratio 42.52 0.00 85.66 11.76 30.13 0.00
2.27 PB Ratio 13.88 30.79 20.85 1.36 2.54 0.00
564.77 PS Ratio 9.15 22.20 9.46 1.34 3.43 9.30
0.00 PCF Ratio 95.88 266.42 97.47 6.27 13.38 0.00
83.97 EV to EBITDA 146.82 556.43 15.40 9.31 6.15 0.00

Multiples

Using a multiples approach we generated a valuation of  $274.06 (USD) for LBRDK:NAS

Company LBRDK:NAS End Date Value
Earnings/Share $2.17 (USD)
Book Value/Share $69.13 (USD)
Sales/Share $0.28 (USD)
Cash Flow/Share ($0.52) (USD)
EBITDA/Share $2.22 (USD)
Price Based on Comps Adjustment Factor
$260.76 (USD) 0
$163.25 (USD) 0
$443.29 (USD) 0
$0.00 (USD) 0
$228.96 (USD) 0
Ratios Ratio Average
PE Ratio 120.17
PB Ratio 2.36
PS Ratio 1596.29
PCF Ratio 341.49
EV to EBITDA 103.34

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  LBRDK:NAS for the last 7 years was  2.33

We ran the Adjusted Book Value for  LBRDK:NAS and generated a book value of  $68.71 (USD)
By multiplying these we get an adjusted valuation of  $160.20 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for LBRDK:NAS. The 1 analysts have a concensus valuation for LBRDK:NAS for 2021 of $214.00 (USD).

LBRDK:NAS Liberty Broadband

No analyst recommendation
Current Price: not available

No analyst consensus

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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