As of May 27, 2025, Altice USA Inc's estimated intrinsic value ranges from $1.11 to $108.84 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $6.79 | +187.6% |
| Discounted Cash Flow (5Y) | $2.72 | +15.3% |
| Dividend Discount Model (Multi-Stage) | $1.11 | -52.8% |
| Earnings Power Value | $108.84 | +4512.0% |
Is Altice USA Inc (ATUS) undervalued or overvalued?
With the current market price at $2.36, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Altice USA Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.54 | 2.3 |
| Cost of equity | 10.9% | 17.7% |
| Cost of debt | 5.4% | 15.6% |
| Tax rate | 23.4% | 27.7% |
| Debt/Equity ratio | 22.7 | 22.7 |
| After-tax WACC | 4.4% | 11.6% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $3 | $26,293M | 71.7% |
| 10-Year Growth | $7 | $28,195M | 52.2% |
| 5-Year EBITDA | $(1,234) | $22,715M | 67.3% |
| 10-Year EBITDA | $1 | $25,394M | 46.9% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $4,847M |
| Discount Rate (WACC) | 11.6% - 4.4% |
| Enterprise Value | $41,868M - $109,991M |
| Net Debt | $25,021M |
| Equity Value | $16,847M - $84,971M |
| Outstanding Shares | 468M |
| Fair Value | $36 - $182 |
| Selected Fair Value | $108.84 |
| Metric | Value |
|---|---|
| Market Capitalization | $1104M |
| Enterprise Value | $26124M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 6.60 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 22.70 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $2.04 |
| Discounted Cash Flow (5Y) | 29% | $0.68 |
| Dividend Discount Model (Multi-Stage) | 24% | $0.22 |
| Earnings Power Value | 12% | $10.88 |
| Weighted Average | 100% | $16.26 |
Based on our comprehensive valuation analysis, Altice USA Inc's weighted average intrinsic value is $16.26, which is approximately 589.1% above the current market price of $2.36.
Key investment considerations:
Given these factors, we believe Altice USA Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.