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Comcast (CMCSA) Valuation Check After This Year’s 26% Share Price Slide

Simply Wall St · 3d ago

Comcast (CMCSA) has quietly slipped this year, with the stock down about 26% year to date even as the underlying business still throws off hefty cash flow. That disconnect naturally raises valuation questions.

See our latest analysis for Comcast.

Despite a sharp year to date share price decline and a 1 year total shareholder return of negative 27.92 percent, the recent 1 day share price return of 2.95 percent hints that sentiment may be stabilizing rather than worsening.

If Comcast’s shift in momentum has you reassessing the media space, it could be worth scanning fast growing stocks with high insider ownership for other compelling ideas ahead of the next leg of the cycle.

With profits still robust, modest revenue growth, and a sizable gap to Wall Street targets, investors are left with a pivotal question: is Comcast now trading below its true worth or already reflecting future growth?

Most Popular Narrative: 20.4% Undervalued

With Comcast last closing at $27.58 against a narrative fair value near $34.65, the storyline leans toward upside even amid muted growth expectations.

The analysts have a consensus price target of $39.75 for Comcast based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $50.0, and the most bearish reporting a price target of just $31.0.

Read the complete narrative.

Want to see what kind of shrinking margins, slower revenue growth, and future earnings multiple still add up to upside from here? The narrative spells it out.

Result: Fair Value of $34.65 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensifying broadband competition and rising sports content costs could squeeze margins and slow growth, which may challenge the implied upside in today’s valuation narrative.

Find out about the key risks to this Comcast narrative.

Build Your Own Comcast Narrative

If you would rather lean on your own analysis and perspectives, you can quickly build a personalized Comcast storyline in just a few minutes: Do it your way.

A great starting point for your Comcast research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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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.