Fiber Valuations: Secular Tailwinds to Support Current Multiples

By Jeff Johnston

February 6, 2019

Key Points

  • Consolidation in the fiber industry, coupled with the numerous underlying demand drivers for fiber networks, has increased valuations significantly over the last 12 months.
  • The U.S. needs an estimated $130B-$150B in fiber infrastructure investment over the next 5-7 years to support broadband competition, rural coverage, and wireless densification, based on a report from Deloitte.
  • New network architectures and emerging applications are expected to increase U.S. data traffic by 65 percent over the next three years.
  • The pricing power fiber-rich operators enjoy, in addition to the operational expenditure benefits from deep fiber, make fiber networks an attractive investment.
  • Given the scarcity of potential takeout candidates and the underlying demand drivers, fiber valuations should remain elevated for the foreseeable future with further consolidation among regional fiber-rich cable operators and RLECs expected.

Read The Report


Stay ahead of the game in your field. Subscribe today.

Get CoBank's industry-leading Knowledge Exchange research reports delivered straight to your inbox as soon as they're released.

Have a comment or question about these reports?

Contact CoBank's Knowledge Exchange team to ask questions, engage with analysts or receive additional information.