Intrinsic value of Comcast Cl A - CMCSA

Previous Close

$34.30

  Intrinsic Value

$45.20

stock screener

  Rating & Target

buy

+32%

Previous close

$34.30

 
Intrinsic value

$45.20

 
Up/down potential

+32%

 
Rating

buy

We calculate the intrinsic value of CMCSA stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 160.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  5.10
  5.09
  5.08
  5.07
  5.07
  5.06
  5.05
  5.05
  5.04
  5.04
  5.03
  5.03
  5.03
  5.03
  5.02
  5.02
  5.02
  5.02
  5.02
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.00
Revenue, $m
  88,837
  93,359
  98,102
  103,079
  108,300
  113,779
  119,529
  125,562
  131,895
  138,540
  145,516
  152,837
  160,522
  168,589
  177,057
  185,946
  195,278
  205,075
  215,359
  226,156
  237,492
  249,392
  261,886
  275,004
  288,776
  303,235
  318,417
  334,356
  351,091
  368,663
Variable operating expenses, $m
  63,901
  66,561
  69,350
  72,277
  75,348
  78,571
  81,952
  85,501
  89,225
  93,133
  85,582
  89,888
  94,408
  99,152
  104,133
  109,361
  114,849
  120,611
  126,659
  133,009
  139,676
  146,675
  154,023
  161,738
  169,838
  178,342
  187,270
  196,645
  206,487
  216,822
Fixed operating expenses, $m
  5,392
  5,511
  5,632
  5,756
  5,882
  6,012
  6,144
  6,279
  6,417
  6,559
  6,703
  6,850
  7,001
  7,155
  7,313
  7,473
  7,638
  7,806
  7,978
  8,153
  8,332
  8,516
  8,703
  8,895
  9,090
  9,290
  9,495
  9,704
  9,917
  10,135
Total operating expenses, $m
  69,293
  72,072
  74,982
  78,033
  81,230
  84,583
  88,096
  91,780
  95,642
  99,692
  92,285
  96,738
  101,409
  106,307
  111,446
  116,834
  122,487
  128,417
  134,637
  141,162
  148,008
  155,191
  162,726
  170,633
  178,928
  187,632
  196,765
  206,349
  216,404
  226,957
Operating income, $m
  19,544
  21,287
  23,120
  25,046
  27,070
  29,197
  31,433
  33,782
  36,252
  38,848
  53,231
  56,099
  59,113
  62,282
  65,612
  69,112
  72,791
  76,658
  80,722
  84,994
  89,483
  94,201
  99,160
  104,371
  109,848
  115,603
  121,652
  128,008
  134,687
  141,706
EBITDA, $m
  47,232
  49,792
  52,481
  55,305
  58,271
  61,388
  64,661
  68,100
  71,713
  75,509
  79,496
  83,686
  88,087
  92,712
  97,571
  102,676
  108,039
  113,674
  119,595
  125,815
  132,350
  139,217
  146,430
  154,009
  161,972
  170,337
  179,126
  188,359
  198,059
  208,249
Interest expense (income), $m
  2,565
  3,486
  3,814
  4,156
  4,514
  4,891
  5,286
  5,700
  6,135
  6,591
  7,070
  7,572
  8,100
  8,654
  9,235
  9,845
  10,485
  11,157
  11,863
  12,604
  13,382
  14,198
  15,056
  15,956
  16,900
  17,892
  18,934
  20,027
  21,175
  22,381
  23,646
Earnings before tax, $m
  16,058
  17,474
  18,964
  20,531
  22,179
  23,911
  25,733
  27,648
  29,661
  31,779
  45,658
  47,999
  50,460
  53,047
  55,767
  58,627
  61,634
  64,795
  68,118
  71,612
  75,285
  79,146
  83,204
  87,471
  91,955
  96,669
  101,624
  106,832
  112,306
  118,059
Tax expense, $m
  4,336
  4,718
  5,120
  5,543
  5,988
  6,456
  6,948
  7,465
  8,009
  8,580
  12,328
  12,960
  13,624
  14,323
  15,057
  15,829
  16,641
  17,495
  18,392
  19,335
  20,327
  21,369
  22,465
  23,617
  24,828
  26,101
  27,439
  28,845
  30,323
  31,876
Net income, $m
  11,722
  12,756
  13,844
  14,988
  16,191
  17,455
  18,785
  20,183
  21,653
  23,198
  33,330
  35,039
  36,835
  38,724
  40,710
  42,798
  44,993
  47,300
  49,726
  52,277
  54,958
  57,776
  60,739
  63,854
  67,128
  70,569
  74,186
  77,988
  81,984
  86,183

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  196,542
  206,546
  217,040
  228,050
  239,603
  251,724
  264,444
  277,793
  291,802
  306,505
  321,937
  338,135
  355,138
  372,985
  391,719
  411,386
  432,031
  453,705
  476,458
  500,346
  525,424
  551,752
  579,394
  608,415
  638,885
  670,875
  704,462
  739,726
  776,751
  815,625
Adjusted assets (=assets-cash), $m
  196,542
  206,546
  217,040
  228,050
  239,603
  251,724
  264,444
  277,793
  291,802
  306,505
  321,937
  338,135
  355,138
  372,985
  391,719
  411,386
  432,031
  453,705
  476,458
  500,346
  525,424
  551,752
  579,394
  608,415
  638,885
  670,875
  704,462
  739,726
  776,751
  815,625
Revenue / Adjusted assets
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
Average production assets, $m
  160,350
  168,512
  177,074
  186,057
  195,482
  205,372
  215,749
  226,640
  238,070
  250,065
  262,656
  275,871
  289,743
  304,303
  319,588
  335,633
  352,477
  370,160
  388,723
  408,212
  428,672
  450,153
  472,705
  496,382
  521,241
  547,340
  574,742
  603,513
  633,720
  665,436
Working capital, $m
  -7,285
  -7,655
  -8,044
  -8,452
  -8,881
  -9,330
  -9,801
  -10,296
  -10,815
  -11,360
  -11,932
  -12,533
  -13,163
  -13,824
  -14,519
  -15,248
  -16,013
  -16,816
  -17,659
  -18,545
  -19,474
  -20,450
  -21,475
  -22,550
  -23,680
  -24,865
  -26,110
  -27,417
  -28,790
  -30,230
Total debt, $m
  70,624
  76,956
  83,599
  90,569
  97,881
  105,554
  113,606
  122,056
  130,924
  140,231
  149,999
  160,253
  171,015
  182,312
  194,171
  206,620
  219,689
  233,408
  247,811
  262,932
  278,806
  295,472
  312,970
  331,340
  350,627
  370,877
  392,137
  414,460
  437,896
  462,504
Total liabilities, $m
  124,411
  130,743
  137,386
  144,356
  151,668
  159,341
  167,393
  175,843
  184,711
  194,018
  203,786
  214,040
  224,802
  236,099
  247,958
  260,407
  273,476
  287,195
  301,598
  316,719
  332,593
  349,259
  366,757
  385,127
  404,414
  424,664
  445,924
  468,247
  491,683
  516,291
Total equity, $m
  72,131
  75,802
  79,654
  83,695
  87,934
  92,383
  97,051
  101,950
  107,091
  112,487
  118,151
  124,096
  130,335
  136,885
  143,761
  150,979
  158,556
  166,510
  174,860
  183,627
  192,831
  202,493
  212,638
  223,288
  234,471
  246,211
  258,538
  271,479
  285,068
  299,334
Total liabilities and equity, $m
  196,542
  206,545
  217,040
  228,051
  239,602
  251,724
  264,444
  277,793
  291,802
  306,505
  321,937
  338,136
  355,137
  372,984
  391,719
  411,386
  432,032
  453,705
  476,458
  500,346
  525,424
  551,752
  579,395
  608,415
  638,885
  670,875
  704,462
  739,726
  776,751
  815,625
Debt-to-equity ratio
  0.980
  1.020
  1.050
  1.080
  1.110
  1.140
  1.170
  1.200
  1.220
  1.250
  1.270
  1.290
  1.310
  1.330
  1.350
  1.370
  1.390
  1.400
  1.420
  1.430
  1.450
  1.460
  1.470
  1.480
  1.500
  1.510
  1.520
  1.530
  1.540
  1.550
Adjusted equity ratio
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367
  0.367

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  11,722
  12,756
  13,844
  14,988
  16,191
  17,455
  18,785
  20,183
  21,653
  23,198
  33,330
  35,039
  36,835
  38,724
  40,710
  42,798
  44,993
  47,300
  49,726
  52,277
  54,958
  57,776
  60,739
  63,854
  67,128
  70,569
  74,186
  77,988
  81,984
  86,183
Depreciation, amort., depletion, $m
  27,689
  28,505
  29,361
  30,259
  31,202
  32,191
  33,229
  34,318
  35,461
  36,660
  26,266
  27,587
  28,974
  30,430
  31,959
  33,563
  35,248
  37,016
  38,872
  40,821
  42,867
  45,015
  47,270
  49,638
  52,124
  54,734
  57,474
  60,351
  63,372
  66,544
Funds from operations, $m
  39,411
  41,261
  43,205
  45,247
  47,392
  49,646
  52,013
  54,500
  57,113
  59,858
  59,596
  62,626
  65,810
  69,155
  72,669
  76,361
  80,240
  84,316
  88,599
  93,098
  97,825
  102,792
  108,010
  113,492
  119,252
  125,303
  131,660
  138,339
  145,356
  152,727
Change in working capital, $m
  -353
  -371
  -389
  -408
  -428
  -449
  -471
  -495
  -519
  -545
  -572
  -600
  -630
  -661
  -694
  -729
  -765
  -803
  -843
  -885
  -929
  -976
  -1,025
  -1,076
  -1,129
  -1,186
  -1,245
  -1,307
  -1,372
  -1,441
Cash from operations, $m
  39,764
  41,631
  43,594
  45,655
  47,821
  50,095
  52,485
  54,995
  57,633
  60,403
  60,168
  63,226
  66,440
  69,816
  73,363
  77,090
  81,006
  85,120
  89,442
  93,983
  98,755
  103,768
  109,034
  114,568
  120,381
  126,488
  132,905
  139,646
  146,728
  154,168
Maintenance CAPEX, $m
  -15,256
  -16,035
  -16,851
  -17,707
  -18,606
  -19,548
  -20,537
  -21,575
  -22,664
  -23,807
  -25,007
  -26,266
  -27,587
  -28,974
  -30,430
  -31,959
  -33,563
  -35,248
  -37,016
  -38,872
  -40,821
  -42,867
  -45,015
  -47,270
  -49,638
  -52,124
  -54,734
  -57,474
  -60,351
  -63,372
New CAPEX, $m
  -7,787
  -8,162
  -8,562
  -8,983
  -9,425
  -9,890
  -10,378
  -10,891
  -11,430
  -11,996
  -12,590
  -13,215
  -13,871
  -14,561
  -15,285
  -16,045
  -16,844
  -17,683
  -18,564
  -19,489
  -20,460
  -21,481
  -22,552
  -23,677
  -24,859
  -26,099
  -27,402
  -28,771
  -30,207
  -31,716
Cash from investing activities, $m
  -23,043
  -24,197
  -25,413
  -26,690
  -28,031
  -29,438
  -30,915
  -32,466
  -34,094
  -35,803
  -37,597
  -39,481
  -41,458
  -43,535
  -45,715
  -48,004
  -50,407
  -52,931
  -55,580
  -58,361
  -61,281
  -64,348
  -67,567
  -70,947
  -74,497
  -78,223
  -82,136
  -86,245
  -90,558
  -95,088
Free cash flow, $m
  16,721
  17,434
  18,181
  18,965
  19,790
  20,657
  21,570
  22,530
  23,539
  24,601
  22,571
  23,746
  24,981
  26,281
  27,648
  29,086
  30,598
  32,189
  33,863
  35,622
  37,473
  39,420
  41,467
  43,620
  45,884
  48,265
  50,769
  53,401
  56,169
  59,080
Issuance/(repayment) of debt, $m
  6,068
  6,333
  6,643
  6,969
  7,313
  7,673
  8,052
  8,450
  8,868
  9,307
  9,769
  10,253
  10,762
  11,297
  11,859
  12,449
  13,069
  13,719
  14,403
  15,121
  15,874
  16,666
  17,497
  18,370
  19,287
  20,250
  21,261
  22,322
  23,437
  24,607
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  6,068
  6,333
  6,643
  6,969
  7,313
  7,673
  8,052
  8,450
  8,868
  9,307
  9,769
  10,253
  10,762
  11,297
  11,859
  12,449
  13,069
  13,719
  14,403
  15,121
  15,874
  16,666
  17,497
  18,370
  19,287
  20,250
  21,261
  22,322
  23,437
  24,607
Total cash flow (excl. dividends), $m
  22,789
  23,767
  24,824
  25,934
  27,102
  28,330
  29,622
  30,979
  32,407
  33,908
  32,340
  33,999
  35,744
  37,578
  39,507
  41,535
  43,667
  45,909
  48,265
  50,743
  53,348
  56,086
  58,964
  61,990
  65,171
  68,515
  72,029
  75,723
  79,606
  83,687
Retained Cash Flow (-), $m
  -3,525
  -3,671
  -3,852
  -4,041
  -4,240
  -4,449
  -4,668
  -4,899
  -5,141
  -5,396
  -5,664
  -5,945
  -6,240
  -6,550
  -6,876
  -7,218
  -7,577
  -7,954
  -8,350
  -8,767
  -9,204
  -9,663
  -10,145
  -10,651
  -11,182
  -11,740
  -12,326
  -12,942
  -13,588
  -14,267
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  761
  800
  840
  883
  928
  975
  1,024
  1,076
  1,130
  1,187
  1,247
  1,310
  1,376
  1,445
  1,517
  1,594
  1,674
  1,758
  1,846
  1,938
  2,035
  2,137
  2,245
  2,357
  2,475
  2,599
  2,729
  2,866
  3,009
  3,160
Cash available for distribution, $m
  19,264
  20,096
  20,972
  21,894
  22,863
  23,882
  24,953
  26,080
  27,265
  28,512
  26,676
  28,054
  29,504
  31,028
  32,631
  34,317
  36,090
  37,954
  39,915
  41,976
  44,144
  46,423
  48,820
  51,340
  53,989
  56,774
  59,703
  62,781
  66,018
  69,420
Discount rate, %
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
  25.93
PV of cash for distribution, $m
  18,122
  17,679
  17,146
  16,521
  15,809
  15,016
  14,149
  13,220
  12,239
  11,222
  9,108
  8,217
  7,324
  6,445
  5,596
  4,789
  4,037
  3,349
  2,731
  2,187
  1,719
  1,323
  998
  736
  530
  372
  255
  169
  110
  69
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Comcast Corporation is a media and technology company. The Company has two primary businesses: Comcast Cable and NBCUniversal. Its Comcast Cable business operates in the Cable Communications segment. Its NBCUniversal business operates in four business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. Its Cable Communications segment consists of the operations of Comcast Cable, which provides video, high-speed Internet and voice services to residential customers under the XFINITY brand. Its Cable Networks segment consists of a portfolio of national cable networks. Its Broadcast Television segment operates the NBC and Telemundo broadcast networks. Its Filmed Entertainment segment primarily produces, acquires, markets and distributes filmed entertainment across the world, and it also develops, produces and licenses live stage plays. Its Theme Parks segment consists primarily of its Universal theme parks in Orlando, Florida and Hollywood, California.

FINANCIAL RATIOS  of  Comcast Cl A (CMCSA)

Valuation Ratios
P/E Ratio 18.7
Price to Sales 2
Price to Book 3
Price to Tangible Book
Price to Cash Flow 8.5
Price to Free Cash Flow 19.3
Growth Rates
Sales Growth Rate 7.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 9.6%
Cap. Spend. - 3 Yr. Gr. Rate 7.3%
Financial Strength
Quick Ratio 1
Current Ratio 0.2
LT Debt to Equity 103%
Total Debt to Equity 113.2%
Interest Coverage 7
Management Effectiveness
Return On Assets 5.9%
Ret/ On Assets - 3 Yr. Avg. 6.1%
Return On Total Capital 7.9%
Ret/ On T. Cap. - 3 Yr. Avg. 8.1%
Return On Equity 16.4%
Return On Equity - 3 Yr. Avg. 16%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 69.6%
Gross Margin - 3 Yr. Avg. 69.6%
EBITDA Margin 32.9%
EBITDA Margin - 3 Yr. Avg. 33%
Operating Margin 20.9%
Oper. Margin - 3 Yr. Avg. 21.3%
Pre-Tax Margin 17.9%
Pre-Tax Margin - 3 Yr. Avg. 18%
Net Profit Margin 10.8%
Net Profit Margin - 3 Yr. Avg. 11.3%
Effective Tax Rate 37%
Eff/ Tax Rate - 3 Yr. Avg. 35%
Payout Ratio 29.9%

CMCSA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CMCSA stock intrinsic value calculation we used $84526 million for the last fiscal year's total revenue generated by Comcast Cl A. The default revenue input number comes from 2017 income statement of Comcast Cl A. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CMCSA stock valuation model: a) initial revenue growth rate of 5.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.3%, whose default value for CMCSA is calculated based on our internal credit rating of Comcast Cl A, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Comcast Cl A.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CMCSA stock the variable cost ratio is equal to 72.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $5276 million in the base year in the intrinsic value calculation for CMCSA stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Comcast Cl A.

Corporate tax rate of 27% is the nominal tax rate for Comcast Cl A. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CMCSA stock is equal to 0.9%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CMCSA are equal to 180.5%.

Life of production assets of 10 years is the average useful life of capital assets used in Comcast Cl A operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CMCSA is equal to -8.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $68606 million for Comcast Cl A - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 4674 million for Comcast Cl A is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Comcast Cl A at the current share price and the inputted number of shares is $160.3 billion.

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