LBRDA

We rate Liberty Broadband Corp (LBRDA) as Avoid with a composite score of 35.4/100 at a current price of $53.90. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.

The rating is primarily driven by strength in stability (37th percentile) and value (35th percentile), which together account for the majority of the composite score. Offsetting weakness in momentum (18th percentile) and investment (25th percentile) tempers our overall conviction. We assign a No Moat rating (26/100), Medium uncertainty, and Standard capital allocation.

Key items to watch: momentum to confirm whether the current price trend has legs. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Liberty Broadband Corp holds a top-quartile position (#0 of 50) within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 35.4/100 places it at rank #4075 in our full 7,333-stock universe. At $9.1B in market capitalization, Liberty Broadband Corp is a mid-cap player in the Transportation, Communications, Electric, Gas, And Sanitary Services space, which limits certain scale advantages but may allow for more agile strategic execution.

Momentum indicators (18th percentile) suggest caution regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.

Available margin data shows operating margins of -4%. Incomplete margin data limits our ability to fully assess the cost structure and margin trajectory, though the available metrics provide a partial view of operating efficiency.

At a current price of $53.90, Liberty Broadband Corp is trading at a premium to fundamental value. Our value factor score of 35/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.

The stock currently trades at a P/E of 12.0x (a 29% discount to the sector median of 16.9x), P/B of 1.4x, P/S of 9.7x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a Medium uncertainty rating to Liberty Broadband Corp. The stock presents a balanced risk profile: below-average price stability (37th percentile) and weak quality scores (27th percentile). While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.

Specific risk factors that inform our assessment include: below-average price stability (37th percentile); weak quality scores (27th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 37th percentile and quality factor at the 27th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: a 9.60% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate Liberty Broadband Corp's capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 11.2%, and the balance sheet is managed within acceptable parameters (D/E: 31%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; Liberty Broadband Corp falls short on at least one dimension.

There is room for improvement in optimizing the capital structure or enhancing shareholder returns. The 9.60% dividend yield provides some income return, but the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.

In summary, Liberty Broadband Corp receives a Avoid rating with a composite score of 35.4/100 (rank #4075 of 7,333). Our quantitative framework assigns a No Moat (26/100, trend: stable), Medium uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 28/100.

Our analysis does not support a constructive view on Liberty Broadband Corp at this time. The combination of limited competitive advantages, medium uncertainty, and standard capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.