Cogent Communications Holdings

NasdaqGS:CCOI Stock Report

Mkt Cap: US$2.7b

We’ve recently updated our valuation analysis.

Cogent Communications Holdings Valuation

Is CCOI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CCOI?

Other financial metrics that can be useful for relative valuation.

CCOI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.6x
Enterprise Value/EBITDA18.5x
PEG Ratio3.1x

Price to Earnings Ratio vs Peers

How does CCOI's PE Ratio compare to its peers?

The above table shows the PE ratio for CCOI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.9x
SATS EchoStar
28.1x-55.4%US$1.4b
LUMN Lumen Technologies
3x-30.4%US$6.0b
LBTY.A Liberty Global
1.5x-57.3%US$9.2b
SIFY Sify Technologies
23.2x30.3%US$271.0m
CCOI Cogent Communications Holdings
119.4x38.6%US$2.7b

Price-To-Earnings vs Peers: CCOI is expensive based on its Price-To-Earnings Ratio (119.4x) compared to the peer average (13.9x).


Price to Earnings Ratio vs Industry

How does CCOI's PE Ratio compare vs other companies in the Global Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a2.7%
n/an/an/a

Price-To-Earnings vs Industry: CCOI is expensive based on its Price-To-Earnings Ratio (119.4x) compared to the Global Telecom industry average (16.7x)


Price to Earnings Ratio vs Fair Ratio

What is CCOI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CCOI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio119.4x
Fair PE Ratio20.8x

Price-To-Earnings vs Fair Ratio: CCOI is expensive based on its Price-To-Earnings Ratio (119.4x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).


Share Price vs Fair Value

What is the Fair Price of CCOI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CCOI ($58.35) is trading below our estimate of fair value ($76.28)

Significantly Below Fair Value: CCOI is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CCOI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$57.77
US$63.00
+9.1%
19.3%US$85.00US$43.00n/a12
Nov ’23US$53.56
US$64.25
+20.0%
18.0%US$85.00US$45.00n/a12
Oct ’23US$52.16
US$65.75
+26.1%
17.6%US$85.00US$45.00n/a12
Sep ’23US$54.19
US$65.91
+21.6%
18.3%US$85.00US$45.00n/a11
Aug ’23US$64.15
US$66.82
+4.2%
17.9%US$85.00US$45.00n/a11
Jul ’23US$61.70
US$66.82
+8.3%
17.9%US$85.00US$45.00n/a11
Jun ’23US$60.15
US$66.82
+11.1%
17.9%US$85.00US$45.00n/a11
May ’23US$58.50
US$69.73
+19.2%
18.5%US$90.00US$45.00n/a11
Apr ’23US$68.81
US$69.73
+1.3%
18.5%US$90.00US$45.00n/a11
Mar ’23US$62.67
US$71.82
+14.6%
19.1%US$90.00US$45.00n/a11
Feb ’23US$64.99
US$74.55
+14.7%
18.5%US$90.00US$45.00n/a11
Jan ’23US$73.18
US$77.45
+5.8%
16.6%US$90.00US$45.00n/a11
Dec ’22US$72.87
US$77.45
+6.3%
16.6%US$90.00US$45.00n/a11
Nov ’22US$77.27
US$77.82
+0.7%
17.0%US$93.00US$45.00US$53.5611
Oct ’22US$72.16
US$77.82
+7.8%
17.0%US$93.00US$45.00US$52.1611
Sep ’22US$74.80
US$77.82
+4.0%
17.0%US$93.00US$45.00US$54.1911
Aug ’22US$77.61
US$75.55
-2.7%
18.0%US$93.00US$45.00US$64.1511
Jul ’22US$76.81
US$75.55
-1.6%
18.0%US$93.00US$45.00US$61.7011
Jun ’22US$74.81
US$75.55
+1.0%
18.0%US$93.00US$45.00US$60.1511
May ’22US$75.51
US$71.45
-5.4%
17.3%US$90.00US$45.00US$58.5011
Apr ’22US$68.41
US$66.20
-3.2%
17.6%US$90.00US$45.00US$68.8110
Mar ’22US$60.32
US$66.20
+9.7%
17.6%US$90.00US$45.00US$62.6710
Feb ’22US$58.02
US$66.90
+15.3%
17.0%US$90.00US$45.00US$64.9910
Jan ’22US$59.87
US$66.90
+11.7%
17.0%US$90.00US$45.00US$73.1810
Dec ’21US$57.96
US$66.90
+15.4%
17.0%US$90.00US$45.00US$72.8710
Nov ’21US$55.80
US$74.00
+32.6%
17.7%US$90.00US$45.00US$77.2710

Analyst Forecast: Target price is less than 20% higher than the current share price.


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