Is Comcast a Bargain After a 33% Share Price Drop in 2025?

• Ever wondered if Comcast’s recent stock slide means it is now a bargain, or if there is more risk lurking beneath the surface?
• In just the past year, Comcast shares have dropped by 33.4%, and they are down 26.5% year-to-date, making more investors curious about its future direction.
• Beyond the market sell-off, Comcast has been in the headlines for its ongoing push into streaming and new technology partnerships. Some see this as a way to offset traditional cable challenges. Reports about renewed competition and evolving customer trends are fueling debate over which way the business will turn next.
• Interestingly, Comcast currently earns a 6 out of 6 valuation score on our checklist, suggesting it is undervalued across every metric we track. We will break down what the usual valuation approaches say about Comcast, and introduce an even better way to size up its true worth, so read on.

Find out why Comcast's -33.4% return over the last year is lagging behind its peers.

Approach 1: Comcast Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company’s value by projecting its future cash flows and then discounting those projections back to today’s value. For Comcast, this approach uses a two-stage Free Cash Flow to Equity method, relying on analyst forecasts for the near term and extrapolated estimates beyond that period.

Currently, Comcast generates free cash flow of about $17.60 billion. Analysts provide projections for the next five years, after which Simply Wall St extrapolates further growth. By 2029, free cash flow is forecasted to reach approximately $14.78 billion, with ten-year projections remaining in a similar range. All cash flow figures are in $.

According to the DCF model, Comcast’s estimated intrinsic value is $73.61 per share. Compared to its current share price, this suggests the stock is trading at a notable 62.6% discount to its calculated fair value, which indicates it may be significantly undervalued based on these cash flow projections.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Comcast is undervalued by 62.6%. Track this in your watchlist or portfolio, or discover 886 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 metric for valuing profitable companies like Comcast. It shows how much investors are willing to pay today for each dollar of the company’s current earnings. This metric is especially relevant for firms with consistent profitability, as it reflects both the company’s earnings power and investor sentiment about its future prospects.

It is important to note that what qualifies as a "normal" or "fair" PE ratio depends heavily on expectations for earnings growth and the company’s risk profile. Faster-growing companies or those with lower risk typically command higher PE multiples. Slower-growing or riskier firms tend to trade at lower multiples.

Comcast’s current PE ratio stands at just 4.4x, which is substantially lower than the Media industry average of 16.1x and the peer group average of 35.9x. On the surface, this large gap may suggest the stock is undervalued. However, rather than just comparing raw numbers, Simply Wall St’s proprietary “Fair Ratio” model factors in Comcast’s unique mix of earnings growth, profit margins, industry traits, company size, and risk to determine what a reasonable PE should be for this business. For Comcast, the Fair Ratio is calculated to be 16.1x. This indicates what investors might expect to pay based on a holistic view of the company’s fundamentals and market context.

By leveraging the Fair Ratio, investors get a much clearer picture compared to using general industry or peer averages, which can overlook company-specific strengths and weaknesses. In this case, Comcast’s actual PE is well below its Fair Ratio, providing a strong signal that the market may be discounting the stock too heavily relative to its true value.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1410 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. Narratives are your personal investment story, a framework for building your own view about a company like Comcast, rooted in what you think will happen to its future revenue, margins, and fair value.

Unlike static numbers, a Narrative connects the company's business story with your financial forecasts and shows how that story translates into a fair value estimate. It allows you to link real-world trends, risks, and opportunities, such as Comcast’s advances in streaming or its exposure to competition, directly to your share price assumptions.

Millions of investors already use Narratives on Simply Wall St’s Community page to map out their perspective, compare with others, and instantly see the impact of any changes to the company's outlook. When new developments hit the news or fresh earnings are released, your Narrative will update dynamically, helping you recalibrate your buy, sell, or hold decisions by comparing your fair value against the current price.

For example, one investor might be optimistic, expecting $49.43 per share if Comcast’s bets on AI-driven home connectivity and theme parks pay off, while another may be more cautious, setting a fair value of $31.00 due to competitive threats and shrinking margins.

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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