Is Comcast Corp (CMCSA) overvalued?
On Equity Rank's model estimate, CMCSA trades 34% below its fair value. Comcast Corp (CMCSA) last closed at $24.39; the multi-method model fair value is $36.74.
| Price | Model fair value | Price vs model |
|---|---|---|
| $24.39 | $36.74 | 34% below |
What the answer rests on
- 10 of 12 valuation methods put CMCSA's value above its price and 2 put it below, so the methods mostly agree.
- To justify today's price, CMCSA's free cash flow would need to grow about -16.5% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 15.0% a year.
- CMCSA trades at 7.9 times its last year's earnings, against a median of 14.5 for 21 profitable Communication Services companies.
- Over the past year the price sat below the model fair value on 100% of trading days. The gap ranged from 75% below to 23% below the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind CMCSA's fair value · What prices assume · Other companies