Stock Analysis on Net
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Stock Analysis on Net

Comcast Corp. (NASDAQ:CMCSA)

Present Value of Free Cash Flow to the Firm (FCFF)

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 the firm (FCFF) is generally described as cash flows after direct costs and before any payments to capital suppliers.

Intrinsic Stock Value (Valuation Summary)

Comcast Corp., free cash flow to the firm (FCFF) forecast

US$ in millions, except per share data

Microsoft Excel
Year Value FCFFt or Terminal value (TVt) Calculation Present value at 8.66%
01 FCFF0 22,189
1 FCFF1 23,182 = 22,189 × (1 + 4.48%) 21,336
2 FCFF2 23,731 = 23,182 × (1 + 2.36%) 20,100
3 FCFF3 23,790 = 23,731 × (1 + 0.25%) 18,545
4 FCFF4 23,346 = 23,790 × (1 + -1.87%) 16,749
5 FCFF5 22,417 = 23,346 × (1 + -3.98%) 14,801
5 Terminal value (TV5) 170,332 = 22,417 × (1 + -3.98%) ÷ (8.66% – -3.98%) 112,468
Intrinsic value of Comcast Corp. capital 204,000
Less: Debt (fair value) 90,300
Intrinsic value of Comcast Corp. common stock 113,700
 
Intrinsic value of Comcast Corp. common stock (per share) $32.02
Current share price $22.05

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.

Weighted Average Cost of Capital (WACC)

Comcast Corp., cost of capital

Microsoft Excel
Value1 Weight Required rate of return2 Calculation
Equity (fair value) 78,300 0.46 15.31%
Debt (fair value) 90,300 0.54 2.88% = 4.00% × (1 – 27.88%)

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

1 US$ in millions

   Equity (fair value) = No. shares of common stock outstanding × Current share price
= 3,551,006,335 × $22.05
= $78,299,689,686.75

   Debt (fair value). See details »

2 Required rate of return on equity is estimated by using CAPM. See details »

   Required rate of return on debt. See details »

   Required rate of return on debt is after tax.

   Estimated (average) effective income tax rate
= (23.70% + 15.00% + 26.20% + 46.95% + 27.54%) ÷ 5
= 27.88%

WACC = 8.66%

FCFF Growth Rate (g)

FCFF growth rate (g) implied by PRAT model

Comcast Corp., PRAT model

Microsoft Excel
Average Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Selected Financial Data (US$ in millions)
Interest expense 4,409 4,134 4,087 3,896 4,281
Net income attributable to Comcast Corporation 19,998 16,192 15,388 5,370 14,159
 
Effective income tax rate (EITR)1 23.70% 15.00% 26.20% 46.95% 27.54%
 
Interest expense, after tax2 3,364 3,514 3,016 2,067 3,102
Add: Dividends declared 4,983 4,862 4,795 4,757 4,613
Interest expense (after tax) and dividends 8,347 8,376 7,811 6,824 7,715
 
EBIT(1 – EITR)3 23,362 19,706 18,404 7,437 17,261
 
Current portion of debt 5,958 4,907 2,069 1,743 2,132
Noncurrent portion of debt 92,979 94,186 95,021 93,068 92,718
Total Comcast Corporation shareholders’ equity 96,903 85,560 82,703 80,943 96,092
Total capital 195,840 184,653 179,793 175,754 190,942
Financial Ratios
Retention rate (RR)4 0.64 0.57 0.58 0.08 0.55
Return on invested capital (ROIC)5 11.93% 10.67% 10.24% 4.23% 9.04%
Averages
RR 0.49
ROIC 9.22%
 
FCFF growth rate (g)6 4.48%

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).

1 See details »

2025 Calculations

2 Interest expense, after tax = Interest expense × (1 – EITR)
= 4,409 × (1 – 23.70%)
= 3,364

3 EBIT(1 – EITR) = Net income attributable to Comcast Corporation + Interest expense, after tax
= 19,998 + 3,364
= 23,362

4 RR = [EBIT(1 – EITR) – Interest expense (after tax) and dividends] ÷ EBIT(1 – EITR)
= [23,362 – 8,347] ÷ 23,362
= 0.64

5 ROIC = 100 × EBIT(1 – EITR) ÷ Total capital
= 100 × 23,362 ÷ 195,840
= 11.93%

6 g = RR × ROIC
= 0.49 × 9.22%
= 4.48%

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

g = 100 × (Total capital, fair value0 × WACC – FCFF0) ÷ (Total capital, fair value0 + FCFF0)
= 100 × (168,600 × 8.66% – 22,189) ÷ (168,600 + 22,189)
= -3.98%

where:

Total capital, fair value0 = current fair value of Comcast Corp. debt and equity (US$ in millions)
FCFF0 = the last year Comcast Corp. free cash flow to the firm (US$ in millions)
WACC = weighted average cost of Comcast Corp. capital

FCFF growth rate (g) forecast

Comcast Corp., H-model

Microsoft Excel
Year Value gt
1 g1 4.48%
2 g2 2.36%
3 g3 0.25%
4 g4 -1.87%
5 and thereafter g5 -3.98%

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)
= 4.48% + (-3.98% – 4.48%) × (2 – 1) ÷ (5 – 1)
= 2.36%

g3 = g1 + (g5 – g1) × (3 – 1) ÷ (5 – 1)
= 4.48% + (-3.98% – 4.48%) × (3 – 1) ÷ (5 – 1)
= 0.25%

g4 = g1 + (g5 – g1) × (4 – 1) ÷ (5 – 1)
= 4.48% + (-3.98% – 4.48%) × (4 – 1) ÷ (5 – 1)
= -1.87%