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Assessing Comcast (CMCSA) Valuation After Litchfield County Network Expansion and Recent Share Price Rebound

Simply Wall St · 2d ago

Comcast (CMCSA) just got a lift after finishing a major network buildout in Litchfield County, Connecticut, opening up high speed internet and its full Xfinity and Comcast Business lineup to roughly 22,000 new locations.

See our latest analysis for Comcast.

The Litchfield buildout lands just as Comcast is rolling out Amazon Luna on Xfinity devices and refining its corporate structure, and that flurry of moves has helped spark a 1 month share price return of 10.82 percent, even though the year to date share price return of negative 18.97 percent and 1 year total shareholder return of negative 15.87 percent show longer term momentum has been under pressure. This hints that investors are cautiously reassessing growth prospects rather than fully re rating the stock.

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With shares still trading at a double digit discount to analyst targets despite muted revenue growth and falling earnings, investors now face a key question: is Comcast genuinely undervalued, or is the market already baking in any future rebound?

Most Popular Narrative Narrative: 12.5% Undervalued

With Comcast last closing at $30.32 against a narrative fair value near $34.65, the gap hints at modest upside if the thesis holds.

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.

Curious how fading earnings, slower growth, and shifting margins can still add up to upside potential? The narrative leans on a bold future profit multiple. Want to see the full playbook behind that valuation path?

Result: Fair Value of $34.65 (UNDERVALUED)

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

However, sustained broadband competition and rising content costs, particularly new sports rights, could compress margins and quickly undermine the current undervaluation narrative.

Find out about the key risks to this Comcast narrative.

Build Your Own Comcast Narrative

If you see the story differently or want to stress test the numbers yourself, you can quickly build a personalized view in minutes using Do it your way.

A great starting point for your Comcast research is our analysis highlighting 4 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.