Frontier Communications Parent, Inc. logo FYBR - Frontier Communications Parent, Inc.

Inactive Ticker FYBR is not actively trading. Quotes and analytics may be stale.
Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 5
HOLD 4
SELL 2
STRONG
SELL
0
| PRICE TARGET: $34.33 DETAILS
HIGH: $38.50
LOW: $23.00
MEDIAN: $38.50
CONSENSUS: $34.33
DOWNSIDE: 10.81%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Leveraged Infrastructure 80% confidence

Primary model: EV/EBITDA × Telecom Multiple

Valuation Signal Overvalued Strong
Trading 107.4% above fair value
Current Price $38.49
Bear Case $7.78 79.8% downside ($7.78 - $38.49) / $38.49 = -79.8% EBITDA $2B × 6.0x − $11B debt
Fair Value $18.56 51.8% downside ($18.56 - $38.49) / $38.49 = -51.8% EBITDA $2B × 7.0x − $11B debt
Bull Case $29.35 23.7% downside ($29.35 - $38.49) / $38.49 = -23.7% EBITDA $2B × 8.0x − $11B debt

Adjust Assumptions

7.0x

Key Value Driver

EV/EBITDA multiple (7.0x) vs. 5.3× leverage

Implied Market Multiple 9.8x

Plain-Language Summary

Our base-case estimate uses EV/EBITDA × Telecom Multiple. We then blend that result with the average analyst price target of $34.33 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $18.56 per share.

Warnings

Debt is 5.3x annual operating profit. Because the company carries so much debt, even small shifts in business value cause big swings in the stock price.
Operating profit only covers interest payments 2.6 times over. If the company needs to refinance at higher rates, it could struggle to service its debt.
We value this business based on total operating profit relative to total enterprise value (debt + equity). Profit-per-share metrics are unreliable when debt makes up most of the company's value.
Wall Street's average price target is $34.33 (from 11 analysts). Our estimate is 57% below the consensus -- consider that gap carefully.

Key Risks

  • Debt refinancing at higher rates compresses equity value quickly
  • EBITDA flatters — capex, interest, and taxes eat the cash flow
  • Cord-cutting and wireless substitution are structural headwinds for cable