Intrinsic value of Comcast Cl A - CMCSA

Previous Close

$37.74

  Intrinsic Value

$45.88

stock screener

  Rating & Target

buy

+22%

Previous close

$37.74

 
Intrinsic value

$45.88

 
Up/down potential

+22%

 
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 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 173.3

 

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, %
  2.10
  2.39
  2.65
  2.89
  3.10
  3.29
  3.46
  3.61
  3.75
  3.88
  3.99
  4.09
  4.18
  4.26
  4.34
  4.40
  4.46
  4.52
  4.56
  4.61
  4.65
  4.68
  4.71
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
Revenue, $m
  86,301
  88,364
  90,706
  93,324
  96,214
  99,378
  102,815
  106,529
  110,526
  114,811
  119,390
  124,273
  129,469
  134,988
  140,842
  147,043
  153,605
  160,542
  167,871
  175,607
  183,768
  192,373
  201,442
  210,997
  221,058
  231,651
  242,800
  254,530
  266,870
  279,849
Variable operating expenses, $m
  62,411
  63,626
  65,005
  66,547
  68,249
  70,112
  72,136
  74,324
  76,677
  79,200
  70,308
  73,184
  76,244
  79,494
  82,941
  86,593
  90,457
  94,542
  98,858
  103,414
  108,220
  113,287
  118,628
  124,255
  130,180
  136,418
  142,983
  149,891
  157,158
  164,802
Fixed operating expenses, $m
  5,367
  5,485
  5,605
  5,729
  5,855
  5,983
  6,115
  6,250
  6,387
  6,528
  6,671
  6,818
  6,968
  7,121
  7,278
  7,438
  7,602
  7,769
  7,940
  8,114
  8,293
  8,475
  8,662
  8,852
  9,047
  9,246
  9,450
  9,658
  9,870
  10,087
Total operating expenses, $m
  67,778
  69,111
  70,610
  72,276
  74,104
  76,095
  78,251
  80,574
  83,064
  85,728
  76,979
  80,002
  83,212
  86,615
  90,219
  94,031
  98,059
  102,311
  106,798
  111,528
  116,513
  121,762
  127,290
  133,107
  139,227
  145,664
  152,433
  159,549
  167,028
  174,889
Operating income, $m
  18,523
  19,253
  20,096
  21,048
  22,111
  23,282
  24,564
  25,956
  27,462
  29,083
  42,411
  44,271
  46,258
  48,373
  50,623
  53,012
  55,546
  58,231
  61,073
  64,078
  67,255
  70,610
  74,152
  77,889
  81,831
  85,987
  90,367
  94,981
  99,842
  104,961
EBITDA, $m
  36,359
  37,239
  38,251
  39,393
  40,664
  42,065
  43,595
  45,257
  47,051
  48,983
  51,053
  53,267
  55,629
  58,145
  60,818
  63,656
  66,665
  69,852
  73,224
  76,790
  80,557
  84,536
  88,734
  93,163
  97,833
  102,755
  107,942
  113,406
  119,160
  125,218
Interest expense (income), $m
  2,565
  3,486
  3,620
  3,776
  3,954
  4,153
  4,372
  4,612
  4,873
  5,155
  5,459
  5,784
  6,131
  6,502
  6,896
  7,315
  7,760
  8,231
  8,729
  9,255
  9,812
  10,399
  11,018
  11,672
  12,360
  13,085
  13,849
  14,653
  15,500
  16,390
  17,327
Earnings before tax, $m
  15,037
  15,634
  16,319
  17,094
  17,958
  18,910
  19,952
  21,083
  22,307
  23,624
  36,627
  38,140
  39,755
  41,477
  43,308
  45,252
  47,316
  49,502
  51,817
  54,267
  56,856
  59,592
  62,481
  65,529
  68,746
  72,138
  75,713
  79,482
  83,452
  87,634
Tax expense, $m
  4,060
  4,221
  4,406
  4,616
  4,849
  5,106
  5,387
  5,692
  6,023
  6,379
  9,889
  10,298
  10,734
  11,199
  11,693
  12,218
  12,775
  13,366
  13,991
  14,652
  15,351
  16,090
  16,870
  17,693
  18,561
  19,477
  20,443
  21,460
  22,532
  23,661
Net income, $m
  10,977
  11,413
  11,913
  12,479
  13,109
  13,804
  14,565
  15,391
  16,284
  17,246
  26,738
  27,842
  29,021
  30,278
  31,615
  33,034
  34,540
  36,137
  37,827
  39,615
  41,505
  43,502
  45,611
  47,836
  50,184
  52,661
  55,271
  58,022
  60,920
  63,973

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
  191,355
  195,928
  201,122
  206,926
  213,336
  220,349
  227,971
  236,207
  245,069
  254,569
  264,723
  275,550
  287,071
  299,308
  312,288
  326,038
  340,588
  355,970
  372,219
  389,372
  407,467
  426,548
  446,657
  467,842
  490,152
  513,639
  538,358
  564,368
  591,730
  620,509
Adjusted assets (=assets-cash), $m
  191,355
  195,928
  201,122
  206,926
  213,336
  220,349
  227,971
  236,207
  245,069
  254,569
  264,723
  275,550
  287,071
  299,308
  312,288
  326,038
  340,588
  355,970
  372,219
  389,372
  407,467
  426,548
  446,657
  467,842
  490,152
  513,639
  538,358
  564,368
  591,730
  620,509
Revenue / Adjusted assets
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
  0.451
Average production assets, $m
  96,830
  99,144
  101,772
  104,709
  107,953
  111,502
  115,358
  119,526
  124,010
  128,817
  133,956
  139,434
  145,264
  151,457
  158,025
  164,982
  172,345
  180,129
  188,351
  197,031
  206,187
  215,843
  226,018
  236,738
  248,028
  259,913
  272,421
  285,583
  299,429
  313,991
Working capital, $m
  -4,056
  -4,153
  -4,263
  -4,386
  -4,522
  -4,671
  -4,832
  -5,007
  -5,195
  -5,396
  -5,611
  -5,841
  -6,085
  -6,344
  -6,620
  -6,911
  -7,219
  -7,545
  -7,890
  -8,254
  -8,637
  -9,042
  -9,468
  -9,917
  -10,390
  -10,888
  -11,412
  -11,963
  -12,543
  -13,153
Total debt, $m
  67,029
  69,929
  73,222
  76,901
  80,965
  85,411
  90,243
  95,465
  101,084
  107,107
  113,544
  120,409
  127,713
  135,471
  143,701
  152,418
  161,643
  171,395
  181,697
  192,572
  204,044
  216,141
  228,891
  242,322
  256,466
  271,357
  287,029
  303,520
  320,867
  339,112
Total liabilities, $m
  121,319
  124,219
  127,512
  131,191
  135,255
  139,701
  144,533
  149,755
  155,374
  161,397
  167,834
  174,699
  182,003
  189,761
  197,991
  206,708
  215,933
  225,685
  235,987
  246,862
  258,334
  270,431
  283,181
  296,612
  310,756
  325,647
  341,319
  357,810
  375,157
  393,402
Total equity, $m
  70,036
  71,710
  73,611
  75,735
  78,081
  80,648
  83,437
  86,452
  89,695
  93,172
  96,889
  100,851
  105,068
  109,547
  114,297
  119,330
  124,655
  130,285
  136,232
  142,510
  149,133
  156,116
  163,476
  171,230
  179,396
  187,992
  197,039
  206,559
  216,573
  227,106
Total liabilities and equity, $m
  191,355
  195,929
  201,123
  206,926
  213,336
  220,349
  227,970
  236,207
  245,069
  254,569
  264,723
  275,550
  287,071
  299,308
  312,288
  326,038
  340,588
  355,970
  372,219
  389,372
  407,467
  426,547
  446,657
  467,842
  490,152
  513,639
  538,358
  564,369
  591,730
  620,508
Debt-to-equity ratio
  0.960
  0.980
  0.990
  1.020
  1.040
  1.060
  1.080
  1.100
  1.130
  1.150
  1.170
  1.190
  1.220
  1.240
  1.260
  1.280
  1.300
  1.320
  1.330
  1.350
  1.370
  1.380
  1.400
  1.420
  1.430
  1.440
  1.460
  1.470
  1.480
  1.490
Adjusted equity ratio
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366
  0.366

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  10,977
  11,413
  11,913
  12,479
  13,109
  13,804
  14,565
  15,391
  16,284
  17,246
  26,738
  27,842
  29,021
  30,278
  31,615
  33,034
  34,540
  36,137
  37,827
  39,615
  41,505
  43,502
  45,611
  47,836
  50,184
  52,661
  55,271
  58,022
  60,920
  63,973
Depreciation, amort., depletion, $m
  17,836
  17,985
  18,155
  18,344
  18,554
  18,783
  19,031
  19,300
  19,590
  19,900
  8,642
  8,996
  9,372
  9,771
  10,195
  10,644
  11,119
  11,621
  12,152
  12,712
  13,302
  13,925
  14,582
  15,273
  16,002
  16,769
  17,576
  18,425
  19,318
  20,257
Funds from operations, $m
  28,813
  29,398
  30,068
  30,823
  31,663
  32,587
  33,596
  34,691
  35,874
  37,145
  35,380
  36,838
  38,393
  40,049
  41,810
  43,678
  45,659
  47,758
  49,978
  52,326
  54,807
  57,427
  60,193
  63,110
  66,186
  69,429
  72,846
  76,446
  80,238
  84,230
Change in working capital, $m
  -83
  -97
  -110
  -123
  -136
  -149
  -162
  -175
  -188
  -201
  -215
  -230
  -244
  -259
  -275
  -291
  -308
  -326
  -344
  -364
  -384
  -404
  -426
  -449
  -473
  -498
  -524
  -551
  -580
  -610
Cash from operations, $m
  28,897
  29,495
  30,178
  30,946
  31,799
  32,736
  33,758
  34,866
  36,061
  37,347
  35,595
  37,068
  38,638
  40,309
  42,085
  43,970
  45,968
  48,084
  50,323
  52,690
  55,191
  57,832
  60,619
  63,559
  66,659
  69,927
  73,370
  76,998
  80,818
  84,840
Maintenance CAPEX, $m
  -6,116
  -6,247
  -6,396
  -6,566
  -6,755
  -6,965
  -7,194
  -7,442
  -7,711
  -8,001
  -8,311
  -8,642
  -8,996
  -9,372
  -9,771
  -10,195
  -10,644
  -11,119
  -11,621
  -12,152
  -12,712
  -13,302
  -13,925
  -14,582
  -15,273
  -16,002
  -16,769
  -17,576
  -18,425
  -19,318
New CAPEX, $m
  -2,029
  -2,314
  -2,628
  -2,937
  -3,243
  -3,549
  -3,857
  -4,168
  -4,484
  -4,807
  -5,138
  -5,479
  -5,830
  -6,192
  -6,568
  -6,958
  -7,363
  -7,784
  -8,222
  -8,680
  -9,157
  -9,655
  -10,176
  -10,720
  -11,289
  -11,885
  -12,509
  -13,162
  -13,846
  -14,562
Cash from investing activities, $m
  -8,145
  -8,561
  -9,024
  -9,503
  -9,998
  -10,514
  -11,051
  -11,610
  -12,195
  -12,808
  -13,449
  -14,121
  -14,826
  -15,564
  -16,339
  -17,153
  -18,007
  -18,903
  -19,843
  -20,832
  -21,869
  -22,957
  -24,101
  -25,302
  -26,562
  -27,887
  -29,278
  -30,738
  -32,271
  -33,880
Free cash flow, $m
  20,752
  20,934
  21,154
  21,443
  21,800
  22,222
  22,707
  23,255
  23,866
  24,539
  22,146
  22,946
  23,812
  24,744
  25,745
  26,817
  27,961
  29,181
  30,479
  31,859
  33,322
  34,874
  36,518
  38,257
  40,096
  42,040
  44,093
  46,260
  48,547
  50,960
Issuance/(repayment) of debt, $m
  2,473
  2,900
  3,293
  3,680
  4,063
  4,447
  4,832
  5,222
  5,618
  6,023
  6,438
  6,864
  7,304
  7,759
  8,229
  8,717
  9,225
  9,752
  10,302
  10,875
  11,473
  12,097
  12,749
  13,431
  14,144
  14,891
  15,672
  16,490
  17,347
  18,245
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  
  2,473
  2,900
  3,293
  3,680
  4,063
  4,447
  4,832
  5,222
  5,618
  6,023
  6,438
  6,864
  7,304
  7,759
  8,229
  8,717
  9,225
  9,752
  10,302
  10,875
  11,473
  12,097
  12,749
  13,431
  14,144
  14,891
  15,672
  16,490
  17,347
  18,245
Total cash flow (excl. dividends), $m
  23,225
  23,833
  24,447
  25,123
  25,864
  26,669
  27,539
  28,477
  29,484
  30,562
  28,584
  29,811
  31,116
  32,503
  33,975
  35,534
  37,186
  38,934
  40,781
  42,734
  44,795
  46,971
  49,267
  51,688
  54,241
  56,931
  59,765
  62,751
  65,895
  69,205
Retained Cash Flow (-), $m
  -1,420
  -1,674
  -1,901
  -2,124
  -2,346
  -2,567
  -2,789
  -3,015
  -3,243
  -3,477
  -3,716
  -3,963
  -4,217
  -4,479
  -4,751
  -5,032
  -5,325
  -5,630
  -5,947
  -6,278
  -6,623
  -6,983
  -7,360
  -7,754
  -8,165
  -8,596
  -9,047
  -9,520
  -10,014
  -10,533
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
  21,805
  22,159
  22,546
  22,999
  23,518
  24,102
  24,750
  25,463
  26,241
  27,085
  24,868
  25,848
  26,900
  28,024
  29,224
  30,502
  31,861
  33,304
  34,834
  36,456
  38,172
  39,988
  41,907
  43,935
  46,075
  48,335
  50,718
  53,231
  55,880
  58,672
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
  20,513
  19,495
  18,432
  17,355
  16,262
  15,154
  14,034
  12,906
  11,779
  10,660
  8,491
  7,570
  6,677
  5,821
  5,012
  4,257
  3,564
  2,938
  2,383
  1,899
  1,486
  1,140
  857
  630
  452
  317
  216
  144
  93
  58
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 20.6
Price to Sales 2.2
Price to Book 3.3
Price to Tangible Book
Price to Cash Flow 9.3
Price to Free Cash Flow 21.3
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 0001 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 2.1% 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 $5251 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%.

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 112.2%.

Life of production assets of 15.5 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 -4.7%. 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 - $68616 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 4592.2 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 $173.3 billion.

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COMPANY NEWS

▶ Universal VR patent adds more real-life details to rides   [Sep-19-18 11:27AM  American City Business Journals]
▶ Hulu hits 1 million live-TV customers   [Sep-18-18 04:40PM  American City Business Journals]
▶ Why Nashville execs should care about who has internet access   [02:37PM  American City Business Journals]
▶ Emmy ratings drop to record low   [02:34PM  American City Business Journals]
▶ This Week in Comcast: Very public battle for Sky could end in private   [08:04AM  American City Business Journals]
▶ [$$] Sky Takeover Explained   [06:55AM  The Wall Street Journal]
▶ Could WideOpenWest Stock Double From Here?   [Sep-17-18 09:47PM  Motley Fool]
▶ [$$] Disney Doesnt Need Hulu to Challenge Netflix   [07:53PM  The Wall Street Journal]
▶ [$$] Fox Extends Sky Offer; Gets 0.07% Acceptances   [01:55PM  The Wall Street Journal]
▶ [$$] Disney Doesn't Need Hulu to Challenge Netflix   [06:03AM  The Wall Street Journal]
▶ [$$] Fox, Comcast Fight for Sky Could End in Sealed Bids   [Sep-16-18 08:51PM  The Wall Street Journal]
▶ [$$] Bidding War for Sky Inches Closer to Resolution   [12:00PM  The Wall Street Journal]
▶ Everyone but Disney Wants to Scare You This Weekend   [Sep-15-18 10:00AM  Motley Fool]
▶ Universal Orlando patent may be for Harry Potter, Nintendo lands   [Sep-14-18 11:29AM  American City Business Journals]
▶ Comcast Rises 3.01%   [04:02PM  Investing.com]
▶ Hulu nabs Discovery for live TV and on-demand streaming   [01:04PM  American City Business Journals]
▶ NBC wins total viewers for first time in 16 years but overall ratings are down   [Sep-11-18 04:38PM  American City Business Journals]
▶ Comcast, Atlanta Motor Speedway prep for Hurricane Florence   [03:09PM  American City Business Journals]
▶ Moonves Leaving CBS Is 5 Years Too Late   [01:29PM  InvestorPlace]
▶ This Week in Comcast: Is broadband business having a 'renaissance'?   [08:06AM  American City Business Journals]
▶ Why WWE Stock Is Bound for a Body Slam   [06:30AM  InvestorPlace]
▶ A peek inside Universal's Slaughter Sinema haunted house   [03:56PM  American City Business Journals]
▶ Mawer 2nd Quarter 2018 Shareholder Letter   [04:25PM  GuruFocus.com]
▶ 'America's Got Talent,' Notre Dame football top ratings   [Sep-05-18 06:56PM  Associated Press]
▶ Summer box office rebounds to $4.4 billion   [05:24PM  American City Business Journals]
▶ Netflix Original Video Quality Slips As Quantity Increases   [04:12PM  Investor's Business Daily]
▶ Trump, DOJ vs. Comcast   [01:51PM  Fox Business Videos]
▶ Universal Orlando's Sand Lake Road project gets bigger   [12:47PM  American City Business Journals]
▶ This Week in Comcast: NBC News issues worsen   [07:54AM  American City Business Journals]

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