Comcast: Is A 12% Yield Enough?

Nov. 21, 2022 12:12 PM ETComcast Corporation (CMCSA)DIS, NFLX, PARA, PARAA, WBD14 Comments
Cavenagh Research profile picture
Cavenagh Research
3.63K Followers

Summary

  • Comcast Corporation's Q3 results were better than expected - as the company topped analyst consensus with regards to both revenues and EPS.
  • Comcast returned to shareholders a total of $4.7 billion, $1.2 billion in the form of dividend payments and $3.5 billion in the form of share repurchases.
  • Valued at x10.5 EV/EBIT, Comcast continues to trade very cheaply and at a discount of approximately 30% to the Media & Communication industry.
  • In my opinion, Comcast Corporation stock should be fairly valued at approximately $47.16/share.

A View Of The Comcast Center

Cindy Ord

Thesis

Valued at x10.5 EV/EBIT, Comcast Corporation (NASDAQ:CMCSA) continues to trade very cheaply and at a discount of approximately 30% to the Media & Communication industry. Such a discounted valuation is not justified, in my opinion - especially when considering that Q3

CMCSA vs SPY YTD

Seeking Alpha

Comcast Q3 Results

Comcast Q3 Results

Comcast valuation

Seeking Alpha

CMCSA valuation

Analyst Consensus EPS; Author's Calculations

CMCSA valuation sensitivity table

Analyst Consenus EPS; Author's Calculations

This article was written by

Cavenagh Research profile picture
3.63K Followers
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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