Comcast Corporation (CMCSA) Stock Valuation — PE Analysis
Telecommunications Services · NASDAQ
Current Price
$20.94
PE Ratio (TTM)
6.8x
Intrinsic Value
$24.95
+16.1% margin of safety
COMPETITIVE MOAT
↑Extensive Broadband Network Infrastructure
Comcast's vast cable network provides a significant barrier to entry for new competitors. This physical infrastructure is costly and time-consuming to replicate.
↑Bundled Service Ecosystem
The integration of internet, TV, and mobile services creates customer stickiness. Bundling increases switching costs and customer retention within its ecosystem.
↑Scale and Market Dominance
As a dominant player in many markets, Comcast benefits from economies of scale. This allows for efficient operations and competitive pricing power.
INVESTMENT RISKS
↓Regulatory Scrutiny and Net Neutrality
Comcast faces ongoing regulatory oversight, particularly concerning net neutrality. Changes in these regulations could impact its business model and pricing flexibility.
↓Content Cost Inflation
The increasing cost of acquiring and producing content for its media divisions, like NBCUniversal, puts pressure on profitability. This can lead to higher prices for consumers or reduced margins.
↓Debt Burden and Interest Rate Sensitivity
Comcast carries a significant debt load, making it vulnerable to rising interest rates. Higher borrowing costs can impact its ability to invest and return capital to shareholders.
Base case
CMCSA base case PE valuation
At a current price of $20.94, the base case PE valuation puts CMCSA fair value near $24.95 per share. That figure assumes 0.0% yearly earnings growth, a target PE multiple of 6.67x, and a 10% discount rate.
Intrinsic Value
$24.95
Margin of safety
+16.1%
Expected annual return
+3.6%
Base case assumptions: 0.0% annual earnings growth, 6.67x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CMCSA PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Comcast Corporation respond.
Open PE Calculator for CMCSACompany Overview
Comcast Corporation functions as a global media and technology conglomerate. Its diverse operations are segmented across Cable Communications, Media, Studios, Theme Parks, and Sky. The Cable Communications division delivers internet, television, phone, and mobile services to residential and business clients under its Xfinity brand, alongside offering advertising solutions. Its Media segment encompasses NBCUniversal's television and streaming platforms, including its national, regional, and international cable channels, the NBC and Telemundo broadcast networks, and the Peacock streaming service. The Studios segment is responsible for NBCUniversal's film and television production and distribution activities. Through its Theme Parks division, Comcast manages Universal Studios resorts located in Orlando, Florida; Hollywood, California; Osaka, Japan; and Beijing, China. The Sky segment provides direct-to-consumer services such as video, internet, voice, and mobile phone offerings, while its content arm includes entertainment networks, the Sky News channel, and Sky Sports networks. Additionally, Comcast owns the Philadelphia Flyers hockey team and the Wells Fargo Center arena in Philadelphia, Pennsylvania. Founded in 1963, Comcast Corporation is headquartered in Philadelphia, Pennsylvania.
Financial Metrics — CMCSA PE Stock Valuation Data
PE Ratio (TTM)
6.8x
PEG Ratio
n/m
Earnings Yield
14.98%
ROE (TTM)
12.0%
Revenue/Share (TTM)
$34.99
Dividend Yield
6.30%
Debt/Equity
1.01x
Frequently Asked Questions
What is the PE ratio of CMCSA?
The trailing twelve-month PE ratio of CMCSA reflects how much investors pay per dollar of Comcast Corporation's earnings. This metric is most useful when compared to Telecommunications Services peers and the company's own historical range.
Is CMCSA overvalued based on PE ratio?
CMCSA's PE of 6.8x combined with a PEG ratio of -0.14 provides a growth-adjusted perspective. CMCSA has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Telecommunications Services, a DCF analysis may be more appropriate.
How do I value CMCSA stock using PE ratio?
To value Comcast Corporation using PE: (1) Compare the current PE (6.8x) against the Telecommunications Services median to assess relative pricing, (2) check the PEG ratio (-0.14) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CMCSA?
CMCSA's PEG ratio is -0.14, calculated by dividing the PE ratio (6.8x) by the expected earnings growth rate. Because CMCSA has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CMCSA stock valuation?
PE ratio gives a quick relative read — how CMCSA is priced versus Telecommunications Services peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CMCSA DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Communication Services valuationsP/E and DCF value CMCSA with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.