One-glance verdict
Undervalued
$233.06 our estimate vs market $7.64
Wall Street consensus: $14.47 (-93.8% lower than our fair-value estimate)
97% below our estimate, below the bear case
Fundamentals snapshot
Liberty Global Ltd.
LBTYA · NMS · Communication Services · Telecom Services
Current price
$7.64
52-week range
$7.48 - $13.52
Market cap
$2.61B
Balance sheet
Distressed
0.13x Concerning
Net debt $6.78B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 0.1% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Return on equity was -26.5% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 4.3% to 1.3% over 3 years.
What this company does
Liberty Global Ltd.
Liberty Global provides internet, TV, and phone services to homes and businesses across Europe. Their main money comes from customers paying for these ongoing services, much like a monthly subscription, which is called recurring revenue (income that is expected to continue regularly). This matters because it shows they have a steady stream of cash coming in, which is important for running a business that needs to invest in its network and services.
How the company got here
Liberty Global was founded in 2004 and has grown into a major player in European telecommunications through a series of strategic acquisitions and expansions. The company has a history of consolidating smaller cable operators and mobile providers to build scale and offer bundled services. This approach has allowed Liberty Global to become a significant provider of internet, video, and mobile services across various European markets. Its journey has been marked by a focus on integrating acquired businesses and investing in network upgrades to stay competitive.
What it actually does
Liberty Global provides essential communication services that people use every day. Think of it like your home internet, the TV channels you watch, and your mobile phone service, all rolled into one. They offer broadband internet for browsing and streaming, digital TV packages with a variety of channels, and both mobile phone plans and services for businesses. They also provide services like smart home features and network security to enhance the customer experience.
Broadband Internet and Fixed-Line Services
This is a core part of Liberty Global's business, providing high-speed internet access to homes and businesses. They offer various internet speed tiers to meet different needs, from basic browsing to high-demand streaming and gaming. Alongside internet, they provide traditional landline phone services. This segment is crucial as it forms the backbone for many other services, like TV and mobile connectivity, and represents a significant portion of the company's revenue.
Video and Entertainment Services
Liberty Global delivers a wide range of television and entertainment options to its customers. This includes a variety of channels covering news, sports, movies, and more, accessible through digital set-top boxes. They also offer on-demand content, allowing customers to watch shows and movies whenever they choose. Some services include advanced features like recording capabilities and multi-screen viewing through apps, making it a key offering for household entertainment.
Mobile Communications Services
The company also operates as a mobile service provider, offering both postpaid and prepaid plans for individual consumers and businesses. This includes voice calls, text messaging, and mobile data services. By offering mobile services, Liberty Global can provide bundled packages that combine internet, TV, and mobile, aiming to be a one-stop shop for customers' communication needs. This segment contributes to the company's overall revenue and customer base.
Business Services
Beyond residential customers, Liberty Global serves a diverse range of businesses, from small enterprises to large corporations. They offer tailored solutions including voice and data services, advanced networking, cloud-based solutions, and mobile connectivity. These services are designed to support business operations and communication needs, representing a significant market for the company and diversifying its revenue streams beyond the consumer sector.
What management is betting on now
Liberty Global's management is focused on expanding its high-speed broadband infrastructure and enhancing its digital entertainment platforms. They are investing in network upgrades to offer faster internet speeds and more reliable connectivity, which is essential in today's digital world. The company is also working on integrating services and improving the customer experience through innovative platforms and smart home technologies. This strategy aims to retain existing customers and attract new ones by offering superior products and services in a competitive market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$102.40M
FY2024 Q4
$712.90M
FY2025 Q1
$-114.10M
FY2025 Q2
$-170.10M
FY2025 Q3
$-41.10M
FY2025 Q4
$193.30M
FY2026 Q1
$-290.00M
FY2026 Q2
$-117.00M
Revenue
$1.17B
Net income
$-365.10M
Diluted EPS
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Operating cash flow
$230.90M
Free cash flow
$-117.00M
Fetching…
Sources
Revenue
$1.27B
Net income
$337.80M
Diluted EPS
0.96
Operating cash flow
$107.60M
Free cash flow
$-290.00M
Fetching…
Sources
Revenue
$1.23B
Net income
$-2.92B
Diluted EPS
-8.66
Operating cash flow
$630.90M
Free cash flow
$193.30M
Fetching…
Sources
Revenue
$1.21B
Net income
$-90.70M
Diluted EPS
-0.27
Operating cash flow
$301.80M
Free cash flow
$-41.10M
Fetching…
Sources
Revenue
$1.27B
Net income
$-2.79B
Diluted EPS
-8.09
Operating cash flow
$149.20M
Free cash flow
$-170.10M
Fetching…
Sources
Revenue
$1.17B
Net income
$-1.34B
Diluted EPS
-3.84
Operating cash flow
$129.20M
Free cash flow
$-114.10M
Fetching…
Sources
Revenue
$-1.41B
Net income
$2.24B
Diluted EPS
6.11
Operating cash flow
$791.60M
Free cash flow
$712.90M
Fetching…
Sources
Revenue
$1.94B
Net income
$-1.43B
Diluted EPS
-3.95
Operating cash flow
$449.50M
Free cash flow
$102.40M
Fetching…
Sources
Is it cheap or expensive?
Fair value $233.06 vs current price $7.64
Wall Street consensus is the average analyst price target: $14.47 (-93.8% lower than our fair-value estimate).
Our most-likely fair value is $233.06 a share — about 2,948.5% above today's price of $7.64, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $6.8B. Interest coverage 0.1x.
Net debt
$6.78B
Interest coverage
0.13x
Liberty Global Ltd.'s profit covers its interest bill about 0.1 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
LBTYA
BASELINE
Liberty Global Ltd.
Total debt $9.33B Interest coverage 0.13x This is the baseline the peer rows are being compared against.
Total debt $60.90B Interest coverage 1.53x +1,040% vs LBTYA Carries about 11.4x more debt cushion than LBTYA.
Total debt $33.19B Interest coverage 2.42x +1,707% vs LBTYA Carries about 18.1x more debt cushion than LBTYA.
What you should know
The case for and against LBTYA
2 Rewards
3 Risks
Rewards
-
Revenue grew 0.1% last year.
-
Free cash flow was positive in 9/10 years.
Risks
-
Return on equity was -26.5% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 4.3% to 1.3% over 3 years.
-
Insider ownership is only 4.1% (peer median: 5.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-5.39x
P/B
0.28x
P/S
0.53x
EV/EBITDA
8.48x
PEG ratio
0.34x
Profitability
How much profit each dollar creates
Gross margin
67.2%
Operating margin
1.3%
Net margin
-62.1%
ROE
-26.5%
ROA
0.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.99x
Current ratio
1.28x
Quick ratio
1.16x
Total debt
$9.33B
Total cash
$2.55B
Growth
How the business has been compounding
Revenue TTM
$4.88B
Revenue 5Y CAGR
-17.1%
EPS TTM
-8.95
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.27B
Free CF TTM
$-132.00M
FCF margin
-2.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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