Intrinsic value of Comcast Corporation - CMCSA

Previous Close

$42.31

  Intrinsic Value

$77.40

stock screener

  Rating & Target

str. buy

+83%

Previous close

$42.31

 
Intrinsic value

$77.40

 
Up/down potential

+83%

 
Rating

str. 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 0001), $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 191.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  26.10
  23.99
  22.09
  20.38
  18.84
  17.46
  16.21
  15.09
  14.08
  13.17
  12.36
  11.62
  10.96
  10.36
  9.83
  9.34
  8.91
  8.52
  8.17
  7.85
  7.57
  7.31
  7.08
  6.87
  6.68
  6.51
  6.36
  6.23
  6.10
  5.99
Revenue, $m
  119,173
  147,763
  180,405
  217,175
  258,099
  303,162
  352,315
  405,486
  462,590
  523,534
  588,228
  656,588
  728,546
  804,047
  883,061
  965,577
  1,051,609
  1,141,194
  1,234,395
  1,331,299
  1,432,015
  1,536,678
  1,645,442
  1,758,485
  1,876,006
  1,998,223
  2,125,376
  2,257,722
  2,395,539
  2,539,124
Variable operating expenses, $m
  92,749
  113,933
  138,120
  165,366
  195,690
  229,081
  265,502
  304,901
  347,214
  392,372
  435,865
  486,519
  539,838
  595,783
  654,331
  715,473
  779,221
  845,602
  914,663
  986,466
  1,061,095
  1,138,648
  1,219,240
  1,303,002
  1,390,083
  1,480,644
  1,574,861
  1,672,927
  1,775,047
  1,881,441
Fixed operating expenses, $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 operating expenses, $m
  92,749
  113,933
  138,120
  165,366
  195,690
  229,081
  265,502
  304,901
  347,214
  392,372
  435,865
  486,519
  539,838
  595,783
  654,331
  715,473
  779,221
  845,602
  914,663
  986,466
  1,061,095
  1,138,648
  1,219,240
  1,303,002
  1,390,083
  1,480,644
  1,574,861
  1,672,927
  1,775,047
  1,881,441
Operating income, $m
  26,425
  33,830
  42,285
  51,809
  62,409
  74,081
  86,813
  100,585
  115,376
  131,162
  152,363
  170,069
  188,708
  208,264
  228,730
  250,104
  272,387
  295,592
  319,733
  344,833
  370,920
  398,030
  426,202
  455,482
  485,923
  517,579
  550,514
  584,795
  620,492
  657,683
EBITDA, $m
  39,106
  48,488
  59,200
  71,266
  84,695
  99,482
  115,611
  133,059
  151,798
  171,797
  193,026
  215,458
  239,071
  263,846
  289,774
  316,852
  345,083
  374,480
  405,064
  436,863
  469,913
  504,257
  539,948
  577,043
  615,607
  655,712
  697,437
  740,866
  786,091
  833,208
Interest expense (income), $m
  2,565
  6,034
  8,580
  11,524
  14,885
  18,671
  22,884
  27,524
  32,585
  38,059
  43,939
  50,213
  56,874
  63,913
  71,321
  79,095
  87,230
  95,726
  104,584
  113,808
  123,404
  133,381
  143,751
  154,527
  165,725
  177,364
  189,464
  202,047
  215,139
  228,765
  242,955
Earnings before tax, $m
  20,390
  25,249
  30,761
  36,924
  43,738
  51,197
  59,289
  68,001
  77,317
  87,223
  102,149
  113,195
  124,795
  136,943
  149,635
  162,873
  176,661
  191,008
  205,925
  221,429
  237,539
  254,279
  271,675
  289,757
  308,559
  328,115
  348,467
  369,656
  391,727
  414,728
Tax expense, $m
  5,505
  6,817
  8,305
  9,970
  11,809
  13,823
  16,008
  18,360
  20,876
  23,550
  27,580
  30,563
  33,695
  36,975
  40,402
  43,976
  47,699
  51,572
  55,600
  59,786
  64,136
  68,655
  73,352
  78,235
  83,311
  88,591
  94,086
  99,807
  105,766
  111,977
Net income, $m
  14,885
  18,432
  22,455
  26,955
  31,929
  37,374
  43,281
  49,640
  56,442
  63,673
  74,569
  82,632
  91,100
  99,968
  109,234
  118,898
  128,963
  139,436
  150,325
  161,643
  173,404
  185,624
  198,323
  211,523
  225,248
  239,524
  254,381
  269,849
  285,961
  302,752

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
  317,796
  394,035
  481,081
  579,134
  688,265
  808,431
  939,505
  1,081,296
  1,233,574
  1,396,092
  1,568,608
  1,750,903
  1,942,789
  2,144,126
  2,354,830
  2,574,872
  2,804,290
  3,043,184
  3,291,721
  3,550,131
  3,818,708
  4,097,807
  4,387,844
  4,689,293
  5,002,682
  5,328,595
  5,667,668
  6,020,592
  6,388,105
  6,770,997
Adjusted assets (=assets-cash), $m
  317,796
  394,035
  481,081
  579,134
  688,265
  808,431
  939,505
  1,081,296
  1,233,574
  1,396,092
  1,568,608
  1,750,903
  1,942,789
  2,144,126
  2,354,830
  2,574,872
  2,804,290
  3,043,184
  3,291,721
  3,550,131
  3,818,708
  4,097,807
  4,387,844
  4,689,293
  5,002,682
  5,328,595
  5,667,668
  6,020,592
  6,388,105
  6,770,997
Revenue / Adjusted assets
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
Average production assets, $m
  141,697
  175,690
  214,502
  258,222
  306,880
  360,459
  418,902
  482,123
  550,020
  622,482
  699,403
  780,684
  866,241
  956,012
  1,049,960
  1,148,071
  1,250,363
  1,356,880
  1,467,696
  1,582,915
  1,702,666
  1,827,110
  1,956,430
  2,090,838
  2,230,571
  2,375,887
  2,527,072
  2,684,431
  2,848,296
  3,019,018
Working capital, $m
  -6,555
  -8,127
  -9,922
  -11,945
  -14,195
  -16,674
  -19,377
  -22,302
  -25,442
  -28,794
  -32,353
  -36,112
  -40,070
  -44,223
  -48,568
  -53,107
  -57,838
  -62,766
  -67,892
  -73,221
  -78,761
  -84,517
  -90,499
  -96,717
  -103,180
  -109,902
  -116,896
  -124,175
  -131,755
  -139,652
Total debt, $m
  158,896
  213,407
  275,645
  345,753
  423,781
  509,700
  603,418
  704,799
  813,677
  929,877
  1,053,227
  1,183,567
  1,320,766
  1,464,722
  1,615,375
  1,772,706
  1,936,739
  2,107,549
  2,285,252
  2,470,015
  2,662,048
  2,861,604
  3,068,981
  3,284,516
  3,508,589
  3,741,617
  3,984,055
  4,236,395
  4,499,167
  4,772,935
Total liabilities, $m
  227,224
  281,735
  343,973
  414,081
  492,109
  578,028
  671,746
  773,127
  882,005
  998,205
  1,121,555
  1,251,895
  1,389,094
  1,533,050
  1,683,703
  1,841,034
  2,005,067
  2,175,877
  2,353,580
  2,538,343
  2,730,376
  2,929,932
  3,137,309
  3,352,844
  3,576,917
  3,809,945
  4,052,383
  4,304,723
  4,567,495
  4,841,263
Total equity, $m
  90,572
  112,300
  137,108
  165,053
  196,155
  230,403
  267,759
  308,169
  351,568
  397,886
  447,053
  499,007
  553,695
  611,076
  671,126
  733,839
  799,223
  867,307
  938,140
  1,011,787
  1,088,332
  1,167,875
  1,250,536
  1,336,448
  1,425,764
  1,518,649
  1,615,285
  1,715,869
  1,820,610
  1,929,734
Total liabilities and equity, $m
  317,796
  394,035
  481,081
  579,134
  688,264
  808,431
  939,505
  1,081,296
  1,233,573
  1,396,091
  1,568,608
  1,750,902
  1,942,789
  2,144,126
  2,354,829
  2,574,873
  2,804,290
  3,043,184
  3,291,720
  3,550,130
  3,818,708
  4,097,807
  4,387,845
  4,689,292
  5,002,681
  5,328,594
  5,667,668
  6,020,592
  6,388,105
  6,770,997
Debt-to-equity ratio
  1.750
  1.900
  2.010
  2.090
  2.160
  2.210
  2.250
  2.290
  2.310
  2.340
  2.360
  2.370
  2.390
  2.400
  2.410
  2.420
  2.420
  2.430
  2.440
  2.440
  2.450
  2.450
  2.450
  2.460
  2.460
  2.460
  2.470
  2.470
  2.470
  2.470
Adjusted equity ratio
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  14,885
  18,432
  22,455
  26,955
  31,929
  37,374
  43,281
  49,640
  56,442
  63,673
  74,569
  82,632
  91,100
  99,968
  109,234
  118,898
  128,963
  139,436
  150,325
  161,643
  173,404
  185,624
  198,323
  211,523
  225,248
  239,524
  254,381
  269,849
  285,961
  302,752
Depreciation, amort., depletion, $m
  12,682
  14,658
  16,915
  19,457
  22,286
  25,401
  28,798
  32,474
  36,422
  40,635
  40,663
  45,389
  50,363
  55,582
  61,044
  66,748
  72,696
  78,888
  85,331
  92,030
  98,992
  106,227
  113,746
  121,560
  129,684
  138,133
  146,923
  156,072
  165,599
  175,524
Funds from operations, $m
  27,567
  33,090
  39,370
  46,411
  54,215
  62,774
  72,079
  82,115
  92,863
  104,308
  115,232
  128,021
  141,463
  155,550
  170,278
  185,646
  201,658
  218,324
  235,657
  253,673
  272,396
  291,851
  312,069
  333,083
  354,932
  377,657
  401,304
  425,920
  451,559
  478,276
Change in working capital, $m
  -1,357
  -1,572
  -1,795
  -2,022
  -2,251
  -2,478
  -2,703
  -2,924
  -3,141
  -3,352
  -3,558
  -3,760
  -3,958
  -4,153
  -4,346
  -4,538
  -4,732
  -4,927
  -5,126
  -5,330
  -5,539
  -5,756
  -5,982
  -6,217
  -6,464
  -6,722
  -6,993
  -7,279
  -7,580
  -7,897
Cash from operations, $m
  28,924
  34,663
  41,166
  48,434
  56,465
  65,253
  74,783
  85,039
  96,004
  107,660
  118,790
  131,781
  145,421
  159,703
  174,624
  190,184
  206,390
  223,251
  240,783
  259,003
  277,935
  297,608
  318,051
  339,301
  361,396
  384,379
  408,297
  433,199
  459,139
  486,173
Maintenance CAPEX, $m
  -6,531
  -8,238
  -10,215
  -12,471
  -15,013
  -17,842
  -20,957
  -24,355
  -28,030
  -31,978
  -36,191
  -40,663
  -45,389
  -50,363
  -55,582
  -61,044
  -66,748
  -72,696
  -78,888
  -85,331
  -92,030
  -98,992
  -106,227
  -113,746
  -121,560
  -129,684
  -138,133
  -146,923
  -156,072
  -165,599
New CAPEX, $m
  -29,365
  -33,993
  -38,812
  -43,720
  -48,659
  -53,579
  -58,443
  -63,221
  -67,897
  -72,463
  -76,921
  -81,280
  -85,557
  -89,771
  -93,947
  -98,111
  -102,292
  -106,517
  -110,816
  -115,219
  -119,752
  -124,443
  -129,320
  -134,408
  -139,732
  -145,316
  -151,185
  -157,360
  -163,865
  -170,722
Cash from investing activities, $m
  -35,896
  -42,231
  -49,027
  -56,191
  -63,672
  -71,421
  -79,400
  -87,576
  -95,927
  -104,441
  -113,112
  -121,943
  -130,946
  -140,134
  -149,529
  -159,155
  -169,040
  -179,213
  -189,704
  -200,550
  -211,782
  -223,435
  -235,547
  -248,154
  -261,292
  -275,000
  -289,318
  -304,283
  -319,937
  -336,321
Free cash flow, $m
  -6,973
  -7,569
  -7,861
  -7,757
  -7,206
  -6,168
  -4,617
  -2,537
  77
  3,219
  5,678
  9,837
  14,475
  19,569
  25,094
  31,029
  37,350
  44,039
  51,078
  58,453
  66,154
  74,172
  82,503
  91,146
  100,103
  109,378
  118,980
  128,917
  139,203
  149,852
Issuance/(repayment) of debt, $m
  47,153
  54,511
  62,238
  70,108
  78,028
  85,919
  93,718
  101,380
  108,878
  116,200
  123,349
  130,340
  137,199
  143,956
  150,653
  157,330
  164,034
  170,809
  177,704
  184,763
  192,032
  199,556
  207,377
  215,536
  224,073
  233,028
  242,438
  252,340
  262,772
  273,768
Issuance/(repurchase) of shares, $m
  4,074
  3,296
  2,353
  991
  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  
  51,227
  57,807
  64,591
  71,099
  78,028
  85,919
  93,718
  101,380
  108,878
  116,200
  123,349
  130,340
  137,199
  143,956
  150,653
  157,330
  164,034
  170,809
  177,704
  184,763
  192,032
  199,556
  207,377
  215,536
  224,073
  233,028
  242,438
  252,340
  262,772
  273,768
Total cash flow (excl. dividends), $m
  44,254
  50,238
  56,730
  63,342
  70,822
  79,751
  89,101
  98,844
  108,955
  119,419
  129,028
  140,178
  151,674
  163,525
  175,747
  188,359
  201,384
  214,848
  228,782
  243,216
  258,186
  273,728
  289,880
  306,682
  324,176
  342,406
  361,417
  381,257
  401,974
  423,621
Retained Cash Flow (-), $m
  -18,959
  -21,728
  -24,808
  -27,945
  -31,102
  -34,247
  -37,356
  -40,410
  -43,399
  -46,318
  -49,167
  -51,954
  -54,688
  -57,381
  -60,050
  -62,712
  -65,384
  -68,085
  -70,833
  -73,647
  -76,544
  -79,543
  -82,661
  -85,913
  -89,316
  -92,885
  -96,636
  -100,583
  -104,741
  -109,124
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
  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 available for distribution, $m
  25,295
  28,510
  31,922
  35,397
  39,720
  45,503
  51,745
  58,433
  65,556
  73,102
  79,861
  88,224
  96,986
  106,144
  115,697
  125,647
  136,000
  146,763
  157,949
  169,569
  181,642
  194,185
  207,219
  220,769
  234,860
  249,521
  264,781
  280,674
  297,233
  314,496
Discount rate, %
  8.20
  8.61
  9.04
  9.49
  9.97
  10.47
  10.99
  11.54
  12.12
  12.72
  13.36
  14.02
  14.73
  15.46
  16.24
  17.05
  17.90
  18.79
  19.73
  20.72
  21.76
  22.84
  23.99
  25.19
  26.45
  27.77
  29.16
  30.61
  32.15
  33.75
PV of cash for distribution, $m
  23,378
  24,169
  24,622
  24,628
  24,700
  25,043
  24,941
  24,393
  23,423
  22,074
  20,110
  18,264
  16,259
  14,182
  12,113
  10,125
  8,276
  6,611
  5,157
  3,924
  2,910
  2,101
  1,475
  1,006
  666
  427
  265
  159
  92
  51
Current shareholders' claim on cash, %
  97.9
  96.6
  95.9
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6

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 Corporation (CMCSA)

Valuation Ratios
P/E Ratio 23.1
Price to Sales 2.5
Price to Book 3.7
Price to Tangible Book
Price to Cash Flow 10.4
Price to Free Cash Flow 23.8
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 $94507 million for the last fiscal year's total revenue generated by Comcast Corporation. The default revenue input number comes from 0001 income statement of Comcast Corporation. 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 26.1% 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 8.2%, whose default value for CMCSA is calculated based on our internal credit rating of Comcast Corporation, 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 Corporation.
    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 78.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 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 Corporation.

Corporate tax rate of 27% is the nominal tax rate for Comcast Corporation. 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%.

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 118.9%.

Life of production assets of 17.2 years is the average useful life of capital assets used in Comcast Corporation 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 -5.5%. 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 - $71613 million for Comcast Corporation - 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 4526.069 million for Comcast Corporation 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 Corporation at the current share price and the inputted number of shares is $191.5 billion.

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