Liberty Broadband Corporation (LBRDA)
OvervaluedFundamental
30
Price
$35.99
Market Cap
$5.18B
Part 1 · What the company is worth
Overview
LBRDA is a share class of Liberty Broadband, a holding company whose principal asset is a large minority stake in Charter Communications, the cable and broadband operator. Liberty Broadband does not run cable systems itself: after spinning off its Alaska-based GCI operations in July 2025, it exists mainly to hold roughly a third of Charter and is in the process of merging fully into Charter, with the merger expected to close by mid-2027.
How it makes money
Liberty Broadband earns no meaningful operating revenue of its own: it holds its roughly 32.8% economic interest in Charter under the equity method, meaning it books a share of Charter's net income rather than consolidating Charter's cable and broadband revenue. Its value moves with Charter's stock price and earnings, and with the fixed 0.236 Charter shares each Liberty Broadband share will convert into once the pending merger closes.
Competitive moat
No identified moat · NoneLiberty Broadband itself operates no business with a competitive position to defend — it is a holding vehicle. Any durable advantage belongs to Charter's cable network, not to Liberty Broadband, whose only function is holding shares pending the merger.
Key risks
- Value entirely dependent on Charter — Because its only substantial asset is its Charter stake, anything that hurts Charter's cable and broadband business — subscriber losses, price competition, rising programming costs — passes straight through to Liberty Broadband's results.
- Merger completion risk — The all-stock merger into Charter, approved by both companies' shareholders, is not expected to close until mid-2027 and remains subject to regulatory approvals and other closing conditions that could delay or, in principle, prevent completion.
- Fixed exchange ratio locks in relative value — The 0.236 Charter-share exchange ratio was set at signing; if Charter's business or stock performs very differently than expected before closing, Liberty Broadband shareholders cannot renegotiate the terms they will receive.
Customer concentration
Liberty Broadband has no operating customers of its own; its entire value is concentrated in a single holding, its stake in Charter Communications, rather than in a base of paying customers.
The case for
Buyers argue that owning Liberty Broadband is effectively a way to own Charter at whatever discount the market applies to the holding-company structure, and that the pending merger removes that discount entirely once it closes by converting each share into a fixed number of Charter shares.
The case against
Sellers fear that Liberty Broadband carries all of Charter's cable-industry risks — cord-cutting, competition from fiber and wireless broadband, subscriber losses — without operating a business of its own, and that the merger's mid-2027 timeline leaves a long window in which the deal's terms or completion could be disrupted.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
Comcast is the other large US cable operator, selling the same broadband, video and mobile bundles to residential and small-business customers that drive the value of Liberty Broadband's Charter stake.
AT&T is named in Charter's own 10-K as a broadband and mobile competitor, and is overbuilding fiber into millions of homes inside Charter's footprint.
Verizon competes for the same households with Fios fiber and with fixed wireless home internet, plus mobile lines that Charter sells through Spectrum Mobile.
T-Mobile's fixed wireless home internet has taken a large share of new US broadband additions, the same customers Charter needs to keep and add.
Altice USA runs cable and fiber networks serving residential broadband and video customers in markets adjacent to and overlapping Charter's, with the same product mix.
Cox is a large privately held US cable operator selling broadband, video and mobile to residential customers, though Charter has agreed to combine with it.
Balance Sheet & Liquidity
Revenue
$134M
Fiscal year ended 12/31/2025
Net Income
$-2.68B
Fiscal year ended 12/31/2025
Free Cash Flow
-
Total Equity
$5.70B
Total Liabilities
$3.13B
Current Ratio
0.09
Interest Coverage
0.33
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
No income data available
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$15.12
Current Price
$35.99
Margin of Safety
-138.1%
Fair Value Range
$14.36 - $15.87
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-47.0%
P/B Ratio
0.18
P/FCF
-
Gross Margin
-
ROIC
-0.4%
Profitability Radar
Value Creation (Economic Moat)
ROIC
-0.4%
WACC
7.8%
ROIC − WACC
-8.2 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (5)
- P/B Ratio 0.18
- Debt/Equity ratio
- Low reliance on intangibles
- Revenue Growth 5Y 132.7%
- Earnings Surprise avg 49.1%
Failed (11)
- EPS shows upward trend
- Price CAGR -6.76%
- ROIC -0.4%
- Current Ratio
- Interest Coverage
- Return on Tangible Assets
- DCF valuation (Unknown)
- ROE -86.7%
- Analyst Consensus 0% Buy
- Share Dilution 14.9%
- Piotroski F-Score 2/9
Unavailable (11)
- Gross Margin NaN%
- P/FCF NaN
- Dividend Payout NaN%
- Operating Margin NaN%
- Positive Free Cash Flow
- CapEx intensity
- Debt/EBITDA
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
- Net Margin Trend (invalid data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
Low quality: investigate accounting
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
No institutional filings reported for this company.
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Martin Edward Patterson C.F.A. | CEO & President | 38 |
| Mr. Brian J. Wendling | Chief Accounting Officer & Principal Financial Officer | 52 |
| Ms. Renee L. Wilm J.D. | Chief Legal Officer & Chief Administrative Officer | 51 |
| Mr. Wade D. Haufschild | Senior Vice President | 49 |
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-05
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-29
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-21
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for LBRDA, sourced from Markets Gazette.