Optimum Communications (NYSE:ATUS) shares saw subtle movement this week, offering investors fresh perspective on the company’s current valuation. With performance figures in hand, a closer inspection can reveal trends that may impact future expectations.

After a period of sharp declines, Optimum Communications’ share price has shown only modest swings lately, even as the company navigates a shifting media landscape and ongoing operational adjustments. The 1-year total shareholder return of -18.99% and a five-year total return of -93.18% illustrate the significant headwinds faced. With recent volatility easing, some investors are watching for signs of renewed momentum.

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With shares now trading more than 35% below intrinsic value estimates, investors are left to wonder whether Optimum Communications has become an undervalued prospect, or if the market is already accounting for all potential for a turnaround.

Most Popular Narrative: 23.1% Undervalued

Optimum Communications' most widely followed valuation narrative pegs its fair value at $2.72, a notable premium to the last close of $2.09. That gap prompts a closer look at the drivers behind this optimism.

Bundling strategies that integrate broadband, mobile, and value-added services (including new mobile plans and business product suites) are increasing customer stickiness and multi-product penetration. This is reducing churn and stabilizing or growing earnings over time.

Want to know what kind of upside these bold assumptions could fuel? This narrative is grounded in an aggressive shift in profit margins, a turnaround rarely seen in this sector. Ambitious analyst projections, dramatic improvements in the bottom line, and a future profit picture that is nothing like the past all shape this target. Click through to see what is really driving the numbers.

Result: Fair Value of $2.72 (UNDERVALUED)

However, persistent competition and macroeconomic uncertainty could undermine growth assumptions. This may potentially challenge the optimistic outlook on Optimum Communications’ turnaround story.

Build Your Own Optimum Communications Narrative

If this perspective doesn’t align with your own or you’re interested in digging into the numbers personally, you can craft your own view of Optimum Communications in just a few minutes, and Do it your way.

A great starting point for your Optimum Communications research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.