Is Comcast’s 2025 Valuation Attractive After a 34% Share Price Slide?

• If you are wondering whether Comcast is a beaten down bargain or a value trap right now, you are in exactly the right place to unpack what the current share price is really implying.
• Despite a tough run with the stock down 27.3% year to date and 34.0% over the last year, the last week has seen a 2.4% bounce even though the 30 day return is still slightly negative at -0.9%.
• Recently, investors have been weighing Comcast's ongoing broadband competition, strategic content investments and continued shifts in cable TV subscriber trends. All of these factors shape sentiment around its future cash flows and risk profile. At the same time, market attention has focused on how telecom and media peers are being repriced as interest rates and streaming economics evolve, which helps explain some of the pressure on Comcast's share price.
• Even with that backdrop, Comcast currently scores a strong 6/6 valuation check score, suggesting it screens as undervalued across all our key metrics. Next, we will break down those different valuation approaches and outline a way to think about what the stock may be truly worth by the end of this article.

Find out why Comcast's -34.0% return over the last year is lagging behind its peers.

Approach 1: Comcast Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a business is worth today by projecting its future cash flows and then discounting those back to a present value. For Comcast, the model used is a 2 Stage Free Cash Flow to Equity approach that focuses on cash available to shareholders in $.

Comcast generated trailing twelve month free cash flow of about $17.6 billion, and analyst projections, extended by Simply Wall St beyond the typical five year window, point to annual free cash flow remaining in the mid teens. By 2029, free cash flow is expected to be around $14.8 billion, with further gradual growth implied through 2035.

Based on these cash flow projections, the DCF model arrives at an intrinsic value of roughly $74.52 per share. Compared with the current market price, this implies the stock is trading at about a 63.5% discount. This suggests the market is pricing Comcast well below its modeled long term cash generation capacity.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Comcast is undervalued by 63.5%. Track this in your watchlist or portfolio, or discover 913 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

For profitable, mature businesses like Comcast, the price to earnings ratio is often a clear way to judge value because it links what investors pay today directly to the profits the company is generating right now.

In general, companies with faster, more reliable earnings growth and lower perceived risk tend to justify a higher PE. Slower growth or higher uncertainty, on the other hand, should translate into a lower, discounted multiple. That context matters when looking at Comcast’s current PE of 4.38x against the broader Media industry average of about 15.42x and a peer group average of 22.80x, which signals that the market is assigning a steep discount to its earnings.

Simply Wall St’s Fair Ratio framework refines this comparison by estimating what PE Comcast could trade on, given its earnings growth outlook, profitability, industry positioning, market cap and risk profile. In Comcast’s case, the Fair Ratio is 15.45x, above the current 4.38x. Because this approach adjusts for company specific drivers rather than relying purely on broad peer or sector averages, it offers a more tailored anchor for value and suggests that Comcast is trading materially below that reference point.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 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 us introduce you to Narratives, a simple way to connect your view of Comcast’s story with the numbers behind its fair value. A Narrative is your own, structured storyline about the company, where you spell out what you believe about its future revenue, earnings and margins and then translate that into a financial forecast and an explicit fair value estimate. On Simply Wall St, Narratives live inside the Community page, where millions of investors use them as an accessible tool to link a company’s story, its forecast, and a fair value that can be compared directly with today’s share price to help frame whether it looks like a buy, hold, or sell. Because Narratives update dynamically as new news, earnings or guidance arrives, your view of Comcast can evolve in real time instead of being locked to a static model. For example, one Comcast Narrative might explore a fair value near $49.4 if bundled connectivity, Epic Universe and streaming scale faster than expected, while another more cautious Narrative might point to a fair value closer to $31 if broadband saturation and rising content costs weigh on growth.

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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