Comcast: Deep Dividend Value With Impressive Business Growth

Summary:

  • Comcast has a strong 15-year record of dividend payments and positive dividend growth.
  • Comcast continues to trade at discounted historical valuations and at a discount to its respective industries and sector.
  • Down over 20% on a 1-year timeframe, it might be an ideal time to take a stab at Comcast stock.
  • Utilizing a relative comps valuation analysis and a modified DCF, I will show Comcast’s undervaluation relative to its peers.
  • Some interesting developments in NBCUniversal; including the opening of SUPER NINTENDO WORLD™ in Hollywood, California in early 2023.

Comcast"s Xfinity Mobile Service Introduces New 5G Unlimited Data Options

Jeff Fusco/Getty Images Entertainment

Comcast’s 1-Year Price Action

Data from

Data from (YCharts)

Investment Thesis:

Comcast Corporation (NASDAQ:CMCSA) is being rated as a buy and overweight relative to its cable/satellite industry peers. Steady growth, paired with consistent and reliable share buybacks

Comcast Revenue and AEBITDA by Business Segment (Form 10-K)

Comcast Revenue and AEBITDA by Business Segment (Form 10-K)

CMCSA Dividends/Share 2008-2023

CMCSA Dividends/Share 2008-2023 (FY 2022 Investor Presentation)

Comcast vs. Disney Valuation Metrics

Comcast vs. Disney Valuation Metrics (YCharts)

Relative Ratio Comps

Relative Ratio Comps (FactSet)

Relative Margin Comps

Relative Margin Comps (FactSet)

AEBITDA Assumptions

AEBITDA Assumptions (Data From FactSet)

FCF Assumptions

FCF Assumptions (Data From FactSet)

Price Weights and Assumptions

Price Weights and Assumptions (Data From FactSet)

IRR Calculation

IRR Calculation (Data From FactSet)


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CMCSA over 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: This article is purely my opinion, and prospective investors should conduct further research to make a conclusive decision.


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