Altice stock, , still costs more than 100 times the amount of cash profit it produces in a year, which is pretty steep price to pay. (Cable industry giant Comcast for example, sells for an enterprise value-to-free-cash-flow ratio of only 23.9.) On the other hand, Comcast is projected to grow its profits at only 10.5% annually over the next five years. Altice USA — for which estimates are only just now beginning to come out — currently is pegged as a 55% grower on S&P Global.
That fast growth rate probably explains both the stock’s premium valuation, and why a couple of analysts, at least, are willing to recommend it even at its high stock price. Whether the price is justified will depend on whether Altice can produce the promised growth.