Comcast Well Below Our Intrinsic Value Estimate

Nov. 3.08 | About: Comcast Corporation (CMCSA)

Comcast Corporation (NASDAQ:CMCSA) is a US cable company. At 31 December 2007, the company had approximately 24.1 million video subscribers, 13.2 million Internet subscribers and 4.6 million phone subscribers. The stock has dropped nearly 30% this year. How does the current share price look from an intrinsic value perspective?

Valuecruncher valuation model of $CMCSA with interactive assumptions

Valuecruncher produces a valuation of US$23.70 for $CMCSA. This is a current valuation (an estimate of intrinsic value using a discounted cash flow model) not a target price. This valuation is 50.4% above the current share price of US$15.76. $CMCSA appears to be trading well below our estimate of intrinsic value - with what we believe to be conservative assumptions.


Our analysis incorporates the cash and debt the $CMCSA balance sheet – Valuecruncher calculates a net debt number.

Play with our assumptions – what does your analysis say?

Disclosure: None.