Comcast: Value Trap Or Deep Value?

Oct. 05, 2022 6:40 PM ETComcast Corporation (CMCSA)DIS, NFLX, PARA, WBD13 Comments
Cavenagh Research profile picture
Cavenagh Research


  • Looking at the share price bloodbath in the media space, I am confident in speculating that investors have overreacted.
  • After a sharp sell-off, down about 39% YTD, Comcast now trades at a one-year forward EV/EBIT of x9.7.
  • A valuation characteristic for a value trap is not justified, as Comcast is still growing its topline and the company's profitability remains strong.
  • In Q2 2022, Comcast returned a combined $4.2 billion to equity investors, $3.08 billion share repurchases and $1.2 billion of dividends.
  • In my opinion, Comcast stock is a strong buying opportunity.

A View Of The Comcast Center

Cindy Ord


When a company is trading at x10 EV/EBIT, I like to define it as a deep value opportunity. Because on an unlevered basis, the business would return a yield of 10% (inverse the EV/EBIT multiple).

After a


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Comcast Q2 Results Presentation

Comcast Q2 Results Presentation

CMCSA Shareholder Distribution

CMCSA Q2 Investor presentation

CMCSA valuation

Seeking Alpha

This article was written by

Cavenagh Research profile picture
5y experience as an investment analyst for a major BB-Bank. Currently working towards the CFA charter. Passion for risk-assets (Growth, Contrarian, Emerging Market) ex-colleague and close friend of Investor Express

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Not financial advise.

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