Comcast Corp. (NASDAQ:CMCSA)

Price to earnings (P/E) ratio

The P/E ratio displays an inconsistent pattern with fluctuations throughout the periods. Beginning from a value above 22 in early 2020, it showed a declining trend towards the end of 2021, reaching lows around 12.39 to 13 in mid-2022. Subsequently, it rose sharply, peaking at 31.38 in mid-2023, before falling significantly to a range between approximately 7.86 and 12.01 from early 2024 onward. This suggests notable volatility in market valuation relative to earnings over the examined periods, with a downward trend in valuation multiples seen in the most recent quarters.

Price to operating profit (P/OP) ratio

The P/OP ratio follows a broadly similar cyclical pattern to the P/E ratio but appears somewhat less volatile. From values near 13-14 in 2020-2021, it declined to a low near 5.35 by the end of 2024 and beginning of 2025. Intermittent increases occur around late 2022 and 2023, but overall, the ratio trended downward, indicating a market reassessment resulting in lower valuations relative to operating profit over time.

Price to sales (P/S) ratio

This ratio shows a consistent downward trajectory across the data span. Starting from roughly 2.28 in early 2020, it decreases steadily, reaching values close to 1 by early 2025. Minor fluctuations occur, but the general trend points to a declining market valuation relative to sales, suggesting either sales growth outpacing price appreciation or market skepticism impacting the sales-based valuation metric.

Price to book value (P/BV) ratio

The P/BV ratio begins near 2.11 in early 2020, rising to a peak slightly above 2.8 in mid-2021. Afterwards, a gradual decline is observed, with values falling below 1.5 by early 2025. The decrease in this ratio implies a diminishing market premium over the company's book value, potentially reflecting changes in investor confidence, asset revaluation, or capitalization structure over time.

Share Price Trends

The share price showed notable volatility over the examined period. Initially, there was an upward trend from $37.63 at March 31, 2020, reaching a peak above $58 by June 30, 2021. Subsequently, the price experienced a decline, dropping to below $32 by September 30, 2022. A moderate recovery followed into early 2023 with prices approaching $46 by December 31, 2023, but this was again followed by fluctuations with prices decreasing to around $33 by March 31, 2025. The pattern suggests periods of both strong investor confidence and market corrections within these years.

Earnings Per Share (EPS) Patterns

EPS data starts from March 31, 2020, showing an initial increase from 2.3 in March 2021 to a peak near 3.21 by June 30, 2022. A significant dip is evident at December 31, 2022, where EPS dropped to around 1.25, but it subsequently recovered, reaching a high of 4.28 by March 31, 2025. Overall, the EPS trend indicates solid earnings growth with some volatility, particularly a sharp dip followed by a strong recovery in late 2022 through early 2025.

Price-to-Earnings (P/E) Ratio Dynamics

The P/E ratio exhibited notable fluctuations over the period. Initially, it was around 22 to 25 in early 2021, then it declined consistently to reach values below 13 by June 30, 2022, suggesting either an increase in earnings outpacing price growth or a reduction in share price relative to earnings. A spike occurred at December 31, 2022, with ratios exceeding 30, possibly reflecting lower earnings or temporary market valuation shifts. After this spike, the P/E ratio declined markedly, stabilizing between approximately 7.8 and 12 from late 2023 into 2025, reflecting comparatively stronger earnings relative to stock price or a more conservative market valuation.

Interrelation Between Metrics

The overall patterns suggest that despite share price volatility, earnings have shown resilience and growth, particularly in the recent periods. The drop and subsequent recovery in EPS and the corresponding inverse movement in the P/E ratio indicate episodic market uncertainty or operational fluctuations but ultimately affirm improving profitability. The relatively lower P/E ratios toward the end contrast with prior higher ratios, possibly implying undervaluation or stronger earnings growth relative to price appreciation.

Share Price Trend

The share price exhibited significant volatility from March 31, 2020, through March 31, 2025. It began at $37.63 and increased steadily, peaking at $58.11 in June 30, 2021. Following this peak, a marked downward trend ensued, reaching a low near $31.97 by September 30, 2022. Subsequently, the price showed intermittent recoveries and declines, indicating an unstable market perception. The price continued to fluctuate, ranging between approximately $33 and $46 in the last eight quarters, concluding near $33.19 by March 31, 2025.

Operating Profit Per Share (OPPS) Trend

Operating profit per share was not reported until March 31, 2020. From this initial reporting, OPPS exhibited a generally positive trajectory. It rose gradually from $3.82 in March 31, 2020, to $5.03 by September 30, 2022, with a brief dip around December 31, 2022 ($3.31). After this dip, OPPS resumed increasing, reaching a peak of $6.20 at March 31, 2025. This consistent growth suggests improving operational efficiency or profitability over the analyzed period.

Price to Operating Profit Ratio (P/OP) Analysis

The P/OP ratio experienced significant fluctuations throughout the period. After its initial reporting in March 31, 2020 (13.47), the ratio increased to 14.66 by June 30, 2020, indicating a rising share price relative to operating profits. However, this ratio then trended downward, reaching lows around 7.83 in September 30, 2022, implying that either the share price fell or operating profit per share increased, making shares comparatively cheaper relative to earnings. A temporary spike to 12.94 followed at September 30, 2023, but the ratio again declined, settling near 5.35 by March 31, 2025. The general downward trend in the P/OP ratio over time suggests that operating profits grew at a faster pace than the share price or that the market assigned a lower valuation multiple for each dollar of operating profit.

Combined Insights

The data indicate a disconnection between share price and operating profit per share movements, particularly from mid-2021 onward. While operating profit per share displayed consistent growth, share price experienced considerable fluctuations, resulting in a pronounced reduction in the valuation multiple (P/OP). This could reflect changing market sentiment, risk considerations, or macroeconomic factors impacting the company’s stock independently from its operational performance. The declining P/OP ratio toward the latter part of the period suggests potentially undervalued shares relative to their earnings or increased caution among investors.

The financial data presents a multifaceted view of the company's market valuation and sales trends over multiple quarters from 2020 to 2025.

Share Price Trend

The share price demonstrated considerable volatility across the observed periods. Initially, starting from US$37.63 in the first quarter of 2020, the price rose significantly, peaking at US$58.11 in mid-2021. Subsequently, there was a marked decline through 2022, hitting lows near US$31.97 in the third quarter. Following this downturn, the price fluctuated modestly but generally remained below the mid-2021 peak levels. The latest figures from early 2025 indicate a share price around US$33, reflecting a decline from earlier highs and illustrating a period of moderate recovery but overall lower valuation compared to the peak levels recorded in 2021.

Sales per Share Pattern

Sales per share have shown a steady upward trajectory throughout the periods for which data is available, starting at US$22.61 in the first quarter of 2021 and reaching US$33.09 by the first quarter of 2025. This indicates a consistent growth in revenue generated per share, suggesting improvements in the company’s underlying sales performance or operational scale over this timeframe without visible setbacks.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio data, beginning from the first quarter of 2021, reveals a declining trend from 2.28 down to approximately 1 by the first quarter of 2025. This declining P/S ratio amidst rising sales per share implies that although sales are increasing steadily, the market valuation relative to sales is decreasing. This could reflect investor caution or reassessment regarding the company’s growth prospects or risk profile, as the market is valuing each dollar of sales less intensely over time.

Overall Insights

The combination of steadily increasing sales per share with a declining share price and P/S ratio suggests a divergence between operational performance and market valuation. While the company is generating higher revenues per share, market sentiment or external factors might be constraining the share price appreciation. The volatility observed in the share price emphasizes a potentially uncertain or reactive market environment. The P/S ratio trend supports the interpretation that investors are attributing a progressively lower premium to sales growth, which may warrant further investigation into external market conditions or company-specific challenges affecting investor confidence.

Share Price Trends

The share price exhibited a general upward trend from March 2020 to December 2021, rising from $37.63 to a peak of $58.11 in June 2021. Following this peak, the price underwent a notable decline, reaching a low of $31.97 in September 2022. Thereafter, the share price showed partial recovery with fluctuations, culminating in $46.54 in December 2023. However, from early 2024 onwards, the price experienced a downward trajectory again, falling to $33.19 by March 2025.

Book Value Per Share (BVPS)

BVPS demonstrated a consistent and steady increase throughout the entire period. Starting at $17.86 in March 2020, it rose gradually to $21.2 by December 2021. Despite minor fluctuations around late 2022, the upward trend persisted, reaching $23.2 by March 2025. This indicates an ongoing accumulation of net asset value per share over time, reflecting strengthening underlying equity value.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio mirrored the fluctuations in share price relative to BVPS. It started at 2.11 in March 2020 and rose alongside the share price peak to 2.81 in June 2021. Subsequently, it declined substantially to 1.72 in September 2022, reflecting the reduction in share price against a still-rising BVPS. Following a brief recovery to over 2 in December 2022 and mid-2023, the ratio again decreased, reaching a low of 1.43 by March 2025. This decline in P/BV ratio may suggest a discount in market valuation relative to book value in recent periods.

Overall Assessment

The data suggests that while the company’s fundamental equity value per share has been steadily increasing, market valuation as reflected in share price and P/BV ratio shows higher volatility. The share price experienced significant gains early on but faced downward pressure post-2021, leading to reduced market valuations relative to book value. This divergence could signal market skepticism or external factors influencing investor sentiment despite consistent growth in net asset value per share.