Source: Shutterstock Today we’re going to take a look at the well-established Liberty Broadband Corporation ( NASDAQ:LBRD.K ). The company’s stock saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Liberty Broadband’s outlook and value based on the most recent financial data to see if the opportunity still exists. What’s The Opportunity In Liberty Broadband? According to my price multiple model, which makes a comparison between the company’s price-to-earnings ratio and the industry average, the stock price seems to be justfied. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 10.76x is currently trading slightly below its industry peers’ ratio of 14.71x, which means if you buy Liberty Broadband today, you’d be paying a decent price for it. And if you believe that Liberty Broadband should be trading at this level in the long run, then there’s not much of an […]
