Comcast Corp (CMCSA)

Conclusion

Comcast Corp (CMCSA.US) runs broadband, wireless and video services for households and businesses, along with NBCUniversal's networks, the Peacock streaming service, film and television studios, and Universal theme parks. The shares closed at 23.67 USD on 2026-11-03, giving a market capitalisation of 83.83 billion USD and an enterprise value of 163.60 billion USD.

The verdict is undervalued. The price-to-earnings ratio of 7.4x compares with a ten-year median of 15.0x, EV to EBITDA of 4.9x with 9.1x, and price to free cash flow of 4.9x with 14.4x. The fair value band runs from 55.30 to 82.95 USD with a midpoint of 69.13 USD, giving a margin of safety of 192.0% at the current price. The discounted cash flow gives 74.68 USD per share, and the fair value from historical multiples is 63.58 USD. The reverse DCF implies growth of -12.6% a year, while revenue grew 3.6% a year over five years and free cash flow per share grew 13.3% a year.

What holds the case up is the quality of the earnings: a Piotroski score of 8 out of 9, free cash flow conversion of 1.51 on a trailing basis, and a five-year share count change of -4.7% a year. What would break it is the balance sheet and the thin spread of returns. The Altman Z-score of 1.33 sits in the distress zone, the current ratio is 0.82, and ROIC of 8.1% stands only modestly above a WACC of 6.3%. The operating margin of 14.7% is also below its ten-year median of 19.0%.

Financial health

Financial strength is red, pulled down mainly by the Altman Z-score of 1.33, which falls in the distress zone. The Altman model was designed for manufacturers, and Comcast is not one, so this reading is only a rough signal. The current ratio of 0.82 and quick ratio of 0.69 are below 1, net debt to EBITDA is 2.37x, debt to equity is 0.94, and interest coverage is 4.29x. Each of these is rated neutral rather than good. Insolvency risk is low, about 0.3% by the estimate of the Ohlson model over one to two years. Debt has fallen slightly relative to revenue growth over five years, at -3.3% a year.

Earnings quality

Earnings quality is green, supported by every one of its four measures being rated good. Free cash flow conversion is 1.51 on a trailing basis and 1.09 over five years, and the accrual ratio is -0.05, which means cash earnings exceed reported earnings. Stock-based compensation is 1.1% of revenue, and free cash flow after it is 15.68 billion USD. The share count has fallen by 4.7% a year over five years, which reflects buybacks. The Piotroski score is 8 out of 9, and the Beneish M-score of -2.67 sits in the unlikely range for manipulation. The company beat earnings estimates in all eight of the last quarters, with an average surprise of 8.1%. Analysts, however, have cut estimates recently: the current-year estimate has been revised down, with 14 downgrades against 1 upgrade in the last 30 days.

Profitability

Profitability is yellow, with four neutral readings and no good ones. The gross margin of 69.8% is slightly above its ten-year median of 69.2%. The operating margin of 14.7% is below its median of 19.0%, and the net margin of 9.2% is below its median of 12.3%. Margins have been fairly stable, with a stability measure of 7.6%. Return on invested capital is 8.1% against a weighted cost of capital of 6.3%, a spread the model rates neutral, and its five-year median is 10.1%. The DuPont split shows a net margin of 16.2%, an asset turnover of 0.45 and an equity multiplier of 2.81, so the 12.2% return on equity is supported by leverage as much as by margins.

Growth

Growth is green, although revenue growth itself is only neutral. Revenue has grown at 0.6% a year over three years, 3.6% over five years and 5.2% over ten years. It has risen in 8 of the last 10 comparable years. Earnings per share have grown much faster, at 65.6% a year over three years, 19.3% over five and 13.0% over ten, which is helped by the falling share count. Free cash flow per share has grown 22.8% a year over three years, 13.3% over five and 11.6% over ten. Next year's earnings estimate growth is only 0.7%, so the strong earnings growth is not expected to continue at that pace.

Valuation

Valuation is green. Every current multiple sits well below its ten-year median: the price-to-earnings ratio of 7.4x against 15.0x (a premium of -50.7%), EV to EBITDA of 4.9x against 9.1x (-46.4%), price to free cash flow of 4.9x against 14.4x (-66.0%), price to sales of 0.68x against 1.83x and price to book of 0.91x against 2.40x. The discounted cash flow gives 74.68 USD per share, using a discount rate of 9.0%, a five-year growth rate of 3.6% and a terminal growth rate of 2.5%. The terminal value makes up 54.9% of that figure. The fair value band is an order-of-magnitude estimate built on fixed assumptions, including a 5% equity risk premium and capped growth, and is not a price target. The dividend yield is 5.7%, with a forward yield of 5.7%, and dividends take 28.2% of free cash flow.

Risks

The weakest numbers are the Altman Z-score of 1.33, the current ratio of 0.82, and the thin gap between ROIC of 8.1% and WACC of 6.3%. A weaker balance sheet would raise refinancing pressure on net debt of 2.37x EBITDA, and a slimmer return spread would leave less room for error in the valuation. The operating margin below its median and the recent downward estimate revisions point to pressure on profits. The debt maturity schedule and the revenue split by segment are not available, so the balance sheet cannot be assessed at the level of individual debt tranches or business lines. The analysis also cannot show how the terminal value assumptions would change under different growth paths.