Stock Analysis on Net
Stock Analysis on Net

Comcast Corp. (NASDAQ:CMCSA)

Present Value of Free Cash Flow to Equity (FCFE) 

Microsoft Excel

In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Free cash flow to equity (FCFE) is generally described as cash flows available to the equity holder after payments to debt holders and after allowing for expenditures to maintain the company asset base.

Intrinsic Stock Value (Valuation Summary)

Comcast Corp., free cash flow to equity (FCFE) forecast

US$ in millions, except per share data

Microsoft Excel
Year Value FCFEt or Terminal value (TVt) Calculation Present value at 15.11%
01 FCFE0 16,989
1 FCFE1 18,917 = 16,989 × (1 + 11.35%) 16,433
2 FCFE2 20,288 = 18,917 × (1 + 7.25%) 15,312
3 FCFE3 20,930 = 20,288 × (1 + 3.16%) 13,722
4 FCFE4 20,734 = 20,930 × (1 + -0.93%) 11,809
5 FCFE5 19,692 = 20,734 × (1 + -5.03%) 9,743
5 Terminal value (TV5) 92,873 = 19,692 × (1 + -5.03%) ÷ (15.11% – -5.03%) 45,953
Intrinsic value of Comcast Corp. common stock 112,972
 
Intrinsic value of Comcast Corp. common stock (per share) $31.63
Current share price $22.43

Based on: 10-K (reporting date: 2025-12-31).

1 See details »

Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.

Required Rate of Return (r)

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Assumptions
Rate of return on LT Treasury Composite1 RF 4.95%
Expected rate of return on market portfolio2 E(RM) 17.36%
Systematic risk of Comcast Corp. common stock βCMCSA 0.82
 
Required rate of return on Comcast Corp. common stock3 rCMCSA 15.11%

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

2 See details »

3 rCMCSA = RF + βCMCSA [E(RM) – RF]
= 4.95% + 0.82 [17.36% – 4.95%]
= 15.11%

FCFE Growth Rate (g)

FCFE growth rate (g) implied by PRAT model

Comcast Corp., PRAT model

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Average Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Selected Financial Data (US$ in millions)
Dividends declared 4,983 4,862 4,795 4,757 4,613
Net income attributable to Comcast Corporation 19,998 16,192 15,388 5,370 14,159
Revenue 123,707 123,731 121,572 121,427 116,385
Total assets 272,631 266,211 264,811 257,275 275,905
Total Comcast Corporation shareholders’ equity 96,903 85,560 82,703 80,943 96,092
Financial Ratios
Retention rate1 0.75 0.70 0.69 0.11 0.67
Profit margin2 16.17% 13.09% 12.66% 4.42% 12.17%
Asset turnover3 0.45 0.46 0.46 0.47 0.42
Financial leverage4 2.81 3.11 3.20 3.18 2.87
Averages
Retention rate 0.70
Profit margin 11.70%
Asset turnover 0.45
Financial leverage 3.04
 
FCFE growth rate (g)5 11.35%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

2025 Calculations

1 Retention rate = (Net income attributable to Comcast Corporation – Dividends declared) ÷ Net income attributable to Comcast Corporation
= (19,998 – 4,983) ÷ 19,998
= 0.75

2 Profit margin = 100 × Net income attributable to Comcast Corporation ÷ Revenue
= 100 × 19,998 ÷ 123,707
= 16.17%

3 Asset turnover = Revenue ÷ Total assets
= 123,707 ÷ 272,631
= 0.45

4 Financial leverage = Total assets ÷ Total Comcast Corporation shareholders’ equity
= 272,631 ÷ 96,903
= 2.81

5 g = Retention rate × Profit margin × Asset turnover × Financial leverage
= 0.70 × 11.70% × 0.45 × 3.04
= 11.35%

FCFE growth rate (g) implied by single-stage model

g = 100 × (Equity market value0 × r – FCFE0) ÷ (Equity market value0 + FCFE0)
= 100 × (80,125 × 15.11% – 16,989) ÷ (80,125 + 16,989)
= -5.03%

where:
Equity market value0 = current market value of Comcast Corp. common stock (US$ in millions)
FCFE0 = the last year Comcast Corp. free cash flow to equity (US$ in millions)
r = required rate of return on Comcast Corp. common stock

FCFE growth rate (g) forecast

Comcast Corp., H-model

Microsoft Excel
Year Value gt
1 g1 11.35%
2 g2 7.25%
3 g3 3.16%
4 g4 -0.93%
5 and thereafter g5 -5.03%

where:
g1 is implied by PRAT model
g5 is implied by single-stage model
g2, g3 and g4 are calculated using linear interpolation between g1 and g5

Calculations

g2 = g1 + (g5 – g1) × (2 – 1) ÷ (5 – 1)
= 11.35% + (-5.03% – 11.35%) × (2 – 1) ÷ (5 – 1)
= 7.25%

g3 = g1 + (g5 – g1) × (3 – 1) ÷ (5 – 1)
= 11.35% + (-5.03% – 11.35%) × (3 – 1) ÷ (5 – 1)
= 3.16%

g4 = g1 + (g5 – g1) × (4 – 1) ÷ (5 – 1)
= 11.35% + (-5.03% – 11.35%) × (4 – 1) ÷ (5 – 1)
= -0.93%