LBRDA
Liberty Broadband Corporation
$35.99
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 65.8% below fair value
You pay
$35.99
Bear
$84.24
Fair
$105.30
Bull
$126.36
Bear
$84.24
+134.1%
$4.68 × 18x P/E
Fair
$105.30
+192.6%
$4.68 × 22x P/E
Bull
$126.36
+251.1%
$4.68 × 27x P/E
Adjust Assumptions
22.5x
4.68$
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
7.7x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (13 analysts)
$158.00
Divergence from AlphaVal
33%
Summary
Applying a 22x P/E to adjusted EPS of $4.68, the base-case value is $105.30 per share.
Warnings
Wall Street's average price target is $158.00 (from 13 analysts). Our estimate is 33% below the consensus -- consider that gap carefully.
This stock is 45% below its 52-week high, with weak or declining earnings. That combination often signals real trouble, even though the valuation below is based on other fundamentals.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples