Has the 29% Slide Created an Opportunity in Comcast Stock for 2025?

• Wondering if Comcast is finally trading at an attractive price? You are not alone, especially if you have been searching for potential value opportunities in the current market.
• Despite a bumpy ride lately, Comcast’s shares have slipped by 2.9% in the past week and are down 29% year-to-date. This points to shifting expectations and could indicate either room for upside or fresh risks.
• Recent headlines have focused on the company’s continued broadband subscriber losses and growing competition from streaming platforms. At the same time, Comcast’s strategic investments and efforts to expand its network have drawn investor attention and fueled speculation about its long-term outlook.
• When it comes to valuation, Comcast scores a full 6 out of 6 on our undervaluation checks, signaling potential value by traditional standards. Next, we will break down exactly what these numbers mean using a few well-known valuation methods. Plus, stick around for a more insightful way to look at value that could change how you think about the stock.

Find out why Comcast's -36.2% return over the last year is lagging behind its peers.

Approach 1: Comcast Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates a company's value by forecasting its future cash flows and discounting them back to today. This method gives investors a way to gauge a stock's intrinsic worth beyond current market trends.

For Comcast, the latest reported Free Cash Flow stands at $17.6 billion. Analyst estimates project steady annual FCF in the coming years, with extrapolated figures suggesting Free Cash Flow will be approximately $16.6 billion by 2035. Most near-term projections are grounded in analyst consensus, and later values are based on extended estimates.

According to Simply Wall St’s 2 Stage Free Cash Flow to Equity model, the fair value of Comcast’s shares is $73.45. When compared to the current share price, this reflects a 63.8% discount, which indicates the stock may be substantially undervalued by traditional DCF standards.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Comcast is undervalued by 63.8%. Track this in your watchlist or portfolio, or discover 930 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Comcast.

Approach 2: Comcast Price vs Earnings

The Price-to-Earnings (PE) ratio is a widely used valuation metric, especially for profitable companies like Comcast. It provides investors with a way to gauge how much they are paying for each dollar of earnings, making it easier to compare companies within the same sector.

Growth expectations and risk play a key role in what constitutes a "normal" or "fair" PE ratio. Companies expected to grow faster or with lower risk tend to justify higher PE ratios, while those with stagnating earnings or greater risks typically trade at lower multiples.

Comcast’s current PE ratio stands at just 4.3x, a significant discount compared to the industry average of 15.3x and the peer group average of 22.6x. On the surface, this might suggest Comcast is undervalued relative to its sector and competitors.

However, Simply Wall St's “Fair Ratio” introduces a more nuanced benchmark. The Fair Ratio for Comcast is calculated at 16.0x, reflecting factors beyond industry norms, such as the company's specific earnings growth outlook, profit margins, market cap, and risk profile. This approach is more comprehensive than relying solely on sector averages or peer comparisons because it considers the full context in which Comcast operates.

When you compare Comcast’s actual PE ratio of 4.3x with its Fair Ratio of 16.0x, the data indicates the stock is significantly undervalued on an earnings multiple basis.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1441 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Comcast Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. In simple terms, a Narrative is your story or perspective on a company. It connects your expectations for the business (like future revenue, margins, and growth) to a financial forecast and then to a fair value estimation.

This approach goes beyond the numbers, making investment decisions more personal, transparent, and accountable. Narratives allow you to lay out your reasoning and assumptions, then see how these map to a valuation and whether that aligns with the current share price. On Simply Wall St’s Community page, millions of investors are already using Narratives as an accessible, easy-to-use tool to share outlooks, challenge consensus, and adjust for new information as soon as it’s available, whether fresh earnings are released or a major deal is announced.

When it comes to deciding when to buy or sell, Narratives make it straightforward to compare your fair value with the actual market price and react as things evolve. For example, for Comcast, some investors currently see a fair value as high as $49.43, while others believe $31.00 is more realistic. This is a reminder that your investment decisions should always follow your own narrative, anchored in what you believe is most probable.

Do you think there's more to the story for Comcast? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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