Comcast Corporation (CMCSA)
UndervaluedFundamental
81
Price
$21.76
Market Cap
$78.53B
Part 1 · What the company is worth
Overview
Comcast is a media and telecommunications conglomerate. Its Xfinity brand sells broadband internet, cable TV and mobile phone service to U.S. households and businesses, while its NBCUniversal arm owns NBC and other television networks, the Peacock streaming service, Universal film and TV studios, and Universal theme parks. Broadband and pay-TV to homes is the core of the business; media, movies and theme parks are separate businesses bolted on around it.
How it makes money
Most revenue is a recurring monthly bill: broadband, video and wireless customers pay Comcast directly, which is why cable connectivity produces the steadiest cash flow. The rest is a mix of advertising and subscription fees earned by NBCUniversal's networks and Peacock, box-office and licensing revenue from Universal's films and shows, and ticket and merchandise spending at its theme parks — businesses with very different economics bundled under one parent.
Revenue by segment
Broadband internet, video and mobile service sold to households under the Xfinity brand — Comcast's largest and steadiest source of revenue.
NBC and cable television networks, the Peacock streaming service, and advertising sold across them.
Universal Pictures films and television production, earning box-office, licensing and streaming revenue from the content it makes.
Internet, networking and phone service sold to businesses, from small shops to large enterprise customers.
Universal theme parks and resorts in Orlando, Hollywood, Japan and Beijing, including the newly opened Epic Universe.
Competitive moat
Scale · NarrowComcast's cable and fiber lines pass tens of millions of homes that a new entrant would need years and billions of dollars to replicate, giving it a durable edge in broadband. That edge is eroding, though: fiber overbuilders and fixed-wireless home internet from Verizon and T-Mobile increasingly offer a cheaper or faster alternative in the same neighborhoods, and Comcast has been losing broadband subscribers as a result.
What drives demand
Moderately cyclicalBroadband and pay-TV bills are close to essential household spending and hold up reasonably well in a downturn, which anchors more than half of Comcast's revenue. Advertising, box-office receipts and theme-park attendance are far more sensitive to the economy and to how much people feel like spending on entertainment, so the media and experiences side of the company swings more with the cycle.
Key risks
- Broadband subscriber losses to fiber and fixed wireless — Fiber overbuilders and 5G home internet from Verizon and T-Mobile are taking broadband customers in Comcast's own territory, pressuring the segment that generates the bulk of its profit.
- Cord-cutting erodes traditional pay-TV — Cable video subscribers keep leaving for streaming alternatives, shrinking a business that once anchored Comcast's residential revenue and forcing NBCUniversal to compete for the same audience through Peacock instead.
- Streaming and content spending pressure margins — Building and marketing Peacock against much larger, established streaming rivals requires heavy ongoing content spending, and there is no guarantee the service reaches profitability on the timeline management expects.
- Hit-driven, unpredictable studio results — Universal's film and television revenue depends on the commercial success of individual releases, which is inherently unpredictable and can swing results from one year to the next regardless of broader trends.
- Complexity of an ongoing corporate restructuring — Comcast spun off a group of cable networks into a separate company, Versant, in 2025, and reorganized its segment reporting for 2026; investors should expect the historical comparisons underlying this profile to shift.
The case for
Buyers argue that Comcast's broadband network remains hard to replicate even as competition intensifies, that Peacock and the newly opened Epic Universe theme park give it fresh growth engines, and that the Versant spin-off lets management focus capital on the higher-return parts of the business.
The case against
Sellers worry that fiber and fixed-wireless competitors are structurally eroding Comcast's broadband subscriber base, that cord-cutting keeps shrinking traditional pay-TV faster than streaming can replace it, and that funding Peacock's growth will keep pressuring margins for years before it pays off.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
The other large US cable operator, selling the same residential broadband, video and cable-based mobile bundle (Spectrum versus Xfinity) to the same American households and small businesses.
Named by Comcast itself as a broadband and wireless competitor: its fiber build and its fiber-plus-unlimited-mobile bundles chase the same residential and business connectivity customers.
Competes for the same home-internet and mobile subscribers through Fios fiber and fixed wireless access, and is named as a competitor in Comcast's 10-K.
Named as a wireless competitor and the most aggressive seller of 5G fixed wireless home internet, which takes broadband customers directly out of Comcast's footprint.
Named in the 10-K as a direct-to-consumer streaming competitor: it fights Peacock for the same subscription dollars and the same viewing hours.
Competes with Comcast's Content & Experiences arm on three fronts at once — Disney+ and Hulu against Peacock, its studios against Universal, and its parks against Universal Destinations & Experiences.
Balance Sheet & Liquidity
Revenue
$124.90B
Trailing 12 months (through 6/30/2026)
Net Income
$11.20B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$21.89B
Total Equity
$96.90B
Total Liabilities
$175.48B
Current Ratio
0.80
Interest Coverage
4.16
Debt/EBITDA
2.45
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$116.44
Current Price
$21.76
Margin of Safety
+81.3%
Fair Value Range
$75.69 - $157.20
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
7.00
ROE
20.6%
P/B Ratio
0.50
P/FCF
2.20
Gross Margin
-
ROIC
6.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
6.5%
WACC
6.0%
ROIC − WACC
+0.4 pp
ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.
Fundamental Analysis Criteria
Passed (20)
- EPS shows upward trend
- EPS CAGR 10.95%
- ROIC 6.4%
- P/FCF 2.20
- P/B Ratio 0.50
- Debt/Equity ratio
- Operating Margin 14.7%
- Positive Free Cash Flow
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Price below Graham Number
- DCF valuation (Undervalued)
- ROE 12.0%
- Earnings Surprise avg 4.2%
- PEG Ratio 0.37
- Earnings Quality (OCF/NI) 2.90
- Share Dilution -5.1%
- Piotroski F-Score 7/9
Failed (6)
- Price CAGR -3.55%
- CapEx intensity
- Low reliance on intangibles
- Revenue Growth 5Y 3.6%
- Analyst Consensus 40% Buy
- Net Margin Trend 9.0% vs 18.4%
Unavailable (2)
- Gross Margin NaN%
- Dividend Payout NaN%
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Brian L. Roberts | Chairman & Co-CEO | 65 |
| Mr. Michael J. Cavanagh J.D. | Co-CEO & Director | 59 |
| Mr. Jason S. Armstrong C.F.A. | Chief Financial Officer | 48 |
| Mr. Thomas J. Reid | Chief Legal Officer & Secretary | 61 |
| Ms. Jennifer Khoury Newcomb | Chief Communications Officer | 51 |
| Mr. David N. Watson | Vice Chairman | 67 |
| Mr. Daniel C. Murdock | Executive VP, Chief Accounting Officer & Controller | 51 |
| Ms. Marci Ryvicker | Executive Vice President of Investor Relations | - |
| Mr. Robert L. Eatroff | Executive Vice President of Global Corporate Development & Strategy | 59 |
| Mr. Samuel H. Schwartz | Chief Business Development Officer -Connectivity & Platforms | - |
Audit Risk
10
Board Risk
10
Compensation Risk
9
Shareholder Rights Risk
10
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-03
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-23
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-07-23
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for CMCSA, sourced from Markets Gazette.
- 22d agoNEGATIVEComcast Shares Slide as CFO Sees Internet Prices ‘Irrational’
Comcast Corporation shares experienced a notable decline on Wednesday following comments from its Chief Financial Officer. The CFO indicated that the company's third-quarter broadband subscriber losses might exceed previous expectations, suggesting an 'irrational' pricing environment in the internet market. This sentiment implies increased competitive pressure and potential erosion of ARPU (Average Revenue Per User). Investors are likely reassessing Comcast's growth trajectory and its ability to maintain market share in a challenging telecom landscape, potentially leading to a downward revision of future earnings estimates.
- 22d agoNEGATIVEComcast Shares Slide as CFO Sees Irrational Internet Prices
Comcast Corporation's stock experienced a decline on Wednesday following comments from its Chief Financial Officer. The executive highlighted intense competition within the home fiber internet sector, characterizing some rival pricing strategies as "irrational." This suggests that pressure on Comcast's broadband revenue and margins may persist or even intensify. Investors are likely concerned about the sustainability of profitability in this segment, potentially leading to a reassessment of the company's growth prospects and valuation.
- 7/6/2026NEUTRALJust a week after spin-off plan, Comcast says it will buy British broadcaster
Comcast Corporation has announced its intention to acquire a British broadcaster, a move that comes just one week after the company revealed plans to spin off NBCUniversal. This strategic acquisition signals a potential shift in Comcast's global media strategy, aiming to expand its international footprint. While the terms of the deal and the specific target broadcaster have not yet been disclosed, the news introduces an element of strategic uncertainty for investors. The market will be closely watching for details on financing and the potential impact on Comcast's existing business segments and its previously announced NBCUniversal spin-off.
- 7/2/2026NEUTRALTrump stopped talking about these media stocks, but his portfolio didn’t stop trading them
Despite Donald Trump's public silence on certain media stocks, his portfolio has reportedly maintained trading activity in Comcast and Warner Bros. Discovery. This news emerges amidst ongoing speculation about potential mergers and acquisitions within the media sector. While the specific trading volumes and timing are not detailed, the continued involvement suggests a strategic interest, possibly anticipating sector consolidation or valuing these companies independently of Trump's public commentary. Investors should monitor M&A developments and the broader media landscape for potential impacts on these holdings.
- 7/1/2026NEUTRALHeadline: Telecom Shakeup: Comcast, Verizon Make Deals
Comcast announced a significant strategic shift, planning to spin off its NBCUniversal and Sky media units into a separate, publicly traded entity. This move allows Comcast to concentrate on its core cable TV, broadband, and wireless operations. Concurrently, Verizon is forming a joint venture with BT Group for their international businesses, aiming to divest low-margin units and refocus domestically. While these are major corporate restructurings, their immediate impact on the parent companies' stock prices is uncertain, as the market assesses the long-term value of these strategic realignments and the future performance of the spun-off entities.
- 6/30/2026NEUTRALWill the Comcast-NBCU spinoff pay off for investors? Here’s what history has to say.
Comcast plans to spin off its NBCUniversal division, aiming to unlock value for shareholders by separating its cable and broadband operations from its media and entertainment assets. While Comcast anticipates this strategic move will benefit both entities, historical precedents for similar media spinoffs present a mixed track record. Investors will be closely watching the execution of this plan and its impact on the distinct business segments, as past instances have yielded varied results, making the long-term outcome uncertain.
via Markets Gazette