Comcast Corporation Analysis 10/15/24Disclosure: As of 10/15 I am long Comcast Corporation NYSE: NASDAQ:CMCSA
Comcast is a media and telecom company. They have several business divisions including news, movies, and telecom services.
Looking at their business they own several well known brands like MSNBC, Sky News, Xfinity, and Universal Studios.
Fundamentals:
Looking at the fundamentals of the business it is very stable with return on equity in the teens for multiple economic cycles. Alongside stable margins, paying back shareholders through buybacks and dividends and the responsible usage of debt it appears management is doing a good job running the business.
This can be seen in the earnings and revenue growth over the years. Data going back to 2017 is remarkably stable in both revenue and earnings growth.
Valuations: Looking at the valuations at a P/E of 10 and a dividend/buyback yield of 4% that gives me the minimum 15% return I am looking for in a long term hold. This does not account for future growth.
Calculating for growth I would be happy to earn 18% annual on an investment at current prices. Of course this is just an estimate of the fair value for the company. But I would be still buying at any price below $50/share.
Conclusion:
As with most mature companies this investment should be thought of in a very long term compounding model for determining present value. Similar to in my NASDAQ:TROW analysis a holding period for mature companies should be as long as possible assuming the business is growing and doing well. This allows the earnings to compound and grow into perpetuity.
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