Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Comcast Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -1.0% to 3.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 40, DPO 85, DIO 60). At a 6.5% WACC with mid-year discounting, the terminal value (75% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 7.5x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $48.35 per share, suggesting CMCSA is undervalued by 68.4% at the current price of $28.72.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 18,980 | 18,849 | 19,362 | 19,262 | 19,848 | 20,344 |
| (−) Net Interest | 4,203 | 4,174 | 4,288 | 4,265 | 4,395 | 4,505 |
| (+) D&A | 13,059 | 13,285 | 13,151 | 12,734 | 12,974 | 13,298 |
| EBITDA | 36,242 | 36,308 | 36,801 | 36,260 | 37,216 | 38,147 |
| (−) Tax | 5,291 | 5,255 | 5,398 | 5,370 | 5,533 | — |
| (−) CapEx | 13,187 | 13,097 | 13,453 | 13,383 | 13,790 | — |
| (−) ΔWC | 7,063 | -68 | 267 | -52 | 305 | — |
| Free Cash Flow (FCF) | 10,700 | 18,025 | 17,683 | 17,560 | 17,588 | — |
| Peers' EBITDA Multiple | 7.5x | |||||
| Terminal Value | 284,194 | |||||
| WACC / Discount Rate | 6.50% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 10,368 | 16,400 | 15,107 | 14,086 | 13,247 | 207,418 |
| Enterprise Value | 276,626 | |||||
| Projection Period | 69,208 | 25.0% | ||||
| Terminal Value | 207,418 | 75.0% | ||||
| (−) Current Net Debt | 100,962 | |||||
| Equity Value | 175,664 | |||||
| (÷) Outstanding Shares | 3636M | |||||
| Fair Price | $48 | +68.2% | ||||
| WACC \ EV/EBITDA Exit Multiple | 3.5x | 5.5x | 7.5x | 9.5x | 11.5x |
|---|---|---|---|---|---|
| 4.5% | $21 | $38 | $55 | $72 | $89 |
| 5.5% | $19 | $36 | $52 | $68 | $84 |
| 6.5% | $18 | $33 | $48 | $64 | $79 |
| 7.5% | $16 | $31 | $45 | $60 | $75 |
| 8.5% | $14 | $28 | $42 | $56 | $70 |
Current price: $28.72. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.