CenturyLink offers communications services which include local and long-distance, broadband, private line, Multi-Protocol Label Switching (MPLS), data integration, managed hosting, colocation, Ethernet, network access, video, wireless and other ancillary services. The company was founded in 1968 and is based in Monroe, Louisiana.
CTL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Centurylink Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Centurylink Inc ranked in the 42th percentile in terms of potential gain offered. In terms of the factors that were most noteworthy in this DCF analysis for CTL, they are:
21% of the company's capital comes from equity, which is greater than just 11.18% of stocks in our cash flow based forecasting set.
Centurylink Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.36. This coverage rate is greater than that of only 13% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Centurylink Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Communication Services), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Communication Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CTL, try RCI, CABO, RBBN, VZ, and TSU.