Discounted Cash Flow

Valuation Date 05-May-24

FY 2023E FY 2024E
Cash Flow from Operation (CFO) 25,576 26,227
(-) Capex -14,804 -14,587
Free Cash Flow to Firm 10,772 11,640

Discount Factor 0.93 0.99

Discounted FCFF 10,070 11,570

Total Discounted FCFF (excluding terminal value)

Terminal Value
Firm Value
Terminal Growth Rate
WACC
Net borrowing as of 31st December 2022

Consolidated Equity Value of Comcast

WACC Calculations Rate

Cost of Equity
The 10-Year USA Bond Yield 4.4% Source: investing com
BETA 0.70 Source: Daamodaran
Levered beta 0.88
Equity risk premium 5.5% Source: Damodaran
Cost of Equity 8.3%

Cost of Debt
Cost of Debt 4.2%
Tax rate 47.0%
Interest Adjusted Cost of Debt 2.2%
Target Debt Ratio
WACC

Shares outstanding (mn) 4,406

CMP (as of 21st September 2023) 45

FY 2023E
Capital structure
 Debt 94,811
Equity 200,032

Weight of -
Debt 32.2%
Equity 67.8%

Cost of debt 2.2%

Cost of equity 8.3%

WACC 6.3%
FY 2025E Target Price USD 74###
27,008 CMP (as of 21 Sept 2023 45
###
-15,402 Upside/(downside) - % 62%###
11,605 Market Cap (USD) 200,032###

1.00

11,605

33,246
200,536
233,782
0.5%
6.3%
90,062

323,844
 FY 2020 FY 2021 FY 2022
Operating Segment revenue

Revenue from Cutomers

Residential
Broadband 20,599 22,979 24,469
Video 21,937 22,079 21,314
Voice 3,532 3,417 3,010
Wireless 1,574 2,380 3,071
Business Service 8,191 8,933 9,700
Advertising 2,594 2,820 3,067
Others 1,624 1,719 1,687
Total cable communication 60,051 64,327 66,318
YOY % Growth Rate 7.1% 3.1%

Advertising 8,296 10,291 10,467

Distribution 8,795 10,449 10,881
Other 1,845 2,040 2,058
Distribution 18,936 22,780 23,406
YOY % Growth Rate 20.3% 2.7%

Content Licensing 6,557 7,565 8,713

Theatrical 418 691 1,607
Home Entertainment & other 1,159 1,193 1,302
Total Studios 8,134 9,449 11,622
YOY % Growth Rate 16.2% 23.0%

Total Theme Parks 2,094 5,051 7,541

YOY % Growth Rate 141.2% 49.3%
Headquarter and other 53 87 75
Eliminations (2,006) (3,048) (3,442)
Total NBCUniversal 27,211 34,319 39,202

Direct-to-consumer 15,223 16,455 14,621

Content 1,373 1,341 1,138
Advertising 1,998 2,489 2,187
Total Sky 18,594 20,285 17,946
YOY % Growth Rate 9.1% -11.5%

Corporate and Other 248 461 863

Eliminations (2,540) (3,008) (2,903)
Total Elimination (2,292) (2,547) (2,040)

Total Revenues 103,564 116,384 121,426

YOY % Growth 12.4% 4.3%

% Share in Total Revenue
Cable Communication 58.0% 55.3% 54.6%
Media 18.3% 19.6% 19.3%
Studios 7.9% 8.1% 9.6%
Theme Parks 2.0% 4.3% 6.2%
Sky 18.0% 17.4% 14.8%

Cost of sales as a % of revennue 32.0% 33.0% 31.5%

Advertising, Marketing & promotion 6.5% 6.6% 7.0%
Other Operating and administrative 32.0% 30.6% 31.5%

Income Tax rate 23.9% 27.5% 47.0%

NCI stake 1.6% 2.3% 8.3%

Dividend Payout Ratio 32.4% 88.6%

Balance sheet drivers

Recievable days 38 38

Payable days 118 120

Film & Television Cost

Acc. Depn on PPE as a % of gross asset 1.2%

Addition as % of revenue 2.2%

Intangible Assets
Amortization 16.2%
Additions 2.6%

Purchase of Investments

Debt
Additions during the year
Less : Repayment during the year
Finance cost 3.9%
Finance Income
FY 2023 E FY 2024 E FY 2025 E Notes

68,904 71,144 74,701

3.9% 3.3% 5.0% Assuming similar growth rate for the segment

23,944 24,423 24,936

2.30% 2.00% 2.10%

12,697 13,618 14,469

9.3% 7.2% 6.3% Assuming lower growth due to overall higher inflation

8,917 10,701 12,520

18.3% 20.0% 17.0% Assuming falling growth due to overall lower growth outlook

45,559 48,741 51,925

0 -

18,305 18,671 19,063

2.0% 2.0% 2.1% Lower growth due to higher recession probabiliity in europe

132,768 138,556 145,689

51.9% 51.3% 51.3%
18.0% 17.6% 17.1%
9.6% 9.8% 9.9%
6.7% 7.7% 8.6%
13.8% 13.5% 13.1%

31.2% 32.0% 32.0% Maintaning the same proportion

8.2% 8.7% 9.0%
32.3% 32.4% 32.8%

37.2% 37.2% 37.2% Assuming effective tax rate to fall due to non occurrence of uncommon even

8.3% 8.3% 8.3%

41.0% 41.0% 41.05%

39 39 39

115 110 107

50 110 60

7.9% 7.9% 7.9%

8.0% 7.4% 7.4%

15.0% 15.0% 15.0%

2.6% 2.6% 2.6%

700 700 800

4.2% 4.2% 4.2% Assuming interest rates to increase the overall finance rate as observed histo
550 480 600
nce of uncommon events

e rate as observed historical data

Cash Flow

All Figures in USD Millions otherwise stated FY 2020

Cash Flow from Operating Activities

Net Income 10,701

Adjustments
Depreciation & Amortization 13,100
Goodwill & Long Lived assets Impairment 0
Share Based compenstation 1,193
Non cash int exp (net) 697
Net Gain (loss) on investment activity & other -970
Deferred Income taxes -550

Operating profit before working capital changes 24,171

Changes in operating assets and liabilities, net of effects of acquisitions and divestiture

Current & Non Current receivables net -20

Film & television costs net -244
Account Payable & accured expense related to trade creditors -266
Other operating assets and liabilities 1,096

Net cash provided by operating activites 24,737

Cash flow from Investing Activities

Capital Expenditures -9,179
Cash paid for intangible assets -2,455
Construction of Universal Beijing Resor -1,498
Purchase of spectrum -459
Acquisitions, net of cash acquired -233
Proceeds from sales of businesses and investments 2,339
Purchases of investment -812
Other 250
Net Cash flow from Investing activities -12,047

Cash flow from Financing activities

Proceeds (Repayment) of short term borrwoings net 0

Proceeds from borrowings 18,644
Repurchases and repayments of debt -18,777
Repurchases of common stock under repurchase program and employee plans -534
Dividends paid -4,140
Other -1,706
Net cash used for financing activites -6513
Impact of foreign currency on cash, cash equivalents and restricted cash 2

Net Inc/decr in cash and cash equivalents 6179

Cash and cash equivalents at the Beg of the period 5589

Cash and cash equivalents at the end of the period 11768
FY 2021 FY 2022 FY 2023 E FY 2024 E FY 2025 E

13,833 4,925 12,676 12,029 12,262

13,804 13,821 13,957 14,616 15,263

0 8,583 0 0 0
1,315 1,336 0 0 0
482 309 0 0 0
-1,311 1,177 0 0 0
1,892 -834 0 0 0

30,015 29,317 26,633 26,645 27,525

-1,335 -1,327 -1,514 -618 -762

-680 -451 -50 -110 -60
765 497 507 311 305
382 -1,623 0 0 0

29,147 26,413 25,576 26,227 27,008

-9,174 -10,626 -10,621 -10,253 -10,781

-2,883 -3,141 -3,483 -3,634 -3,821
-976 -330 0 0 0
0 0 0 0 0
-1,374 -12 0 0 0
684 1,985 0 0 0
-174 -2,274 -700 -700 -800
451 258 0 0 0
-13,446 -14,140 -14,804 -14,587 -15,402

0 660 0 0 0
2,628 2,745 0 0 0
-11,498 -2,307 0 0 0
-4,672 -13,328 0 0 0
-4,532 -4,741 -4,767 -4,523 -4,617
-544 786 0 0 0
-18,618 -16,185 -4,767 -4,523 -4,617
-71 -86 0 0 0

-2,988 -3,998 6,005 7,117 6,989

11,768 8,778 4,749 10,754 17,871

8,780 4,749 10,754 17,871 24,860
INCOME STATEMENT
All figures in USD million otherwise stated
Particulars FY 2020 FY 2021

Revenue 103,564 116,385

Cost of sales 33,121 38,450
Gross profit 70,443 77,935
% Margin 68.0% 67.0%
Operating expenses
Advertising, Marketing & promotion 6,741 7,695
Depreciation & Amortisation expense 13,100 13,804

Other Operating and administrative 33,109 35,619

Goodwill & long lived assets impairment 0 0
Total Operating expense 52,950 57,118

Operating Income 17,493 20,817

Operating Margin 16.9% 17.9%

Finance Costs 4,588 4,281

Finance Income 1,160 2557
Income before taxes 14,065 19,093

Income tax expenses 3,364 5,259

Net Income 10,701 13,834

% Margin 10.3% 11.9%
Net Income to NCI 167 -325
Net income to comcast corporation 10,534 14,159

No of shares Outstanding in Mn
Basic 4574.00 4,584.00
Diluted shares 4624.00 4,654

EPS (Per Share)

Basic 2.30 3.09
Diluted shares 2.28 3.04

Dividend (per Share) 1.00

EBITDA
EBIT 17,493 20,817
Depreciation & Amortisation expense 13,100 13,804
EBITDA 30,593 34,621

EBITDA Margin 29.5% 29.7%

FY 2022 FY 2023 E FY 2024 E FY 2025 E

121,427 132,768 138,556 145,689

38,213 41,424 44,338 46,620
83,214 91,344 94,218 99,068
68.5% 68.8% 68.0% 68.0%

8,506 10,887 12,054 13,112

13,821 13,957 14,616 15,263

38,263 42,884 44,892 47,786

8,583 0 0 0
69,173 67,728 71,563 76,161

14,041 23,617 22,655 22,907

11.6% 17.8% 16.4% 15.7%

3,896 3,982 3,982 3,982

-861 550 480 600
9,284 20,185 19,154 19,526

4,359 7,509 7125 7264

4,925 12,676 12,029 12,262

4.1% 9.5% 8.7% 8.4%
-445 1,050 997 1,016
5,370 11,626 11,032 11,246

4,406.00 4,406 4,406 4,406

4,430 4,430 4,430 4,430

1.22 2.6 2.5 2.6

1.21 2.6 2.5 2.5

1.08

14,041 23,617 22,655 22,907

13,821 13,957 14,616 15,263
27,862 37,573 37,272 38,170

22.9% 28.3% 26.9% 26.2%

All Figures in USD Billions otherwise sta FY 2020 FY 2021 FY 2022 FY 2023 E FY 2024 E

Debt
Opening Balance 94,811 94,811
Additions during the year
Less : Repayment during the year 0
94,811
Total Debt 94.8 95 95 95
Current Port of Long term debt 2.1 1.7 1.7 1.7
Long Term Debt 93 93 93 93

Weighted Interest Cost 3.7% 3.9% 4.2%

Finance Cost 3982 3982
FY 2025 E

95
1.7
93

3982
Balance Sheet

All Figures in USD Millions otherwise stated FY 2020 FY 2021 FY 2022 FY 2023 E
Assets

Curent Assets:
Cash & Equivalents 8,711 4,749 10,754
Receivables Net 12,008 12,672 14,186
Other Current assets 4,088 4,406 4,406

Total current assets 0 24,807 21,827 29,347

Non Current Asset

Films & Television costs 12,806 12,560 12,610
Investments 8,082 7,250 7,950
Investments securing colllaterized obligations 605 490 490
Property & Equipment 54,047 55,485 56,807
Goodwill 70,189 58,494 58,494
Franchise Rights 59,365 59,365 59,365
Other intangible assets. Net 33,580 29,308 28,133
Other non current assets 12,424 12,497 12,497

Total Non Current Assets 0 251,098 235,449 236,346

Total Assets 0 275,905 257,276 265,693

Equity & Liabilities

Common stock
Class A 54 51 51
Class B 0 0 0
Additional paid in capital 40,173 39,412 39,412
Retained earnings 61,902 51,609 58,468
Treasury Stock -7,517 -7,517 -7,517
Accumulated OCI (loss) 1,480 -2,611 -2,611
Total Comcast corp shareholder equity 96,092 80,944 87,803
Non Controlling Interest 1,398 684 1,734
.
Total stockholder's equity 97,490 81,628 89,538

Liabilities
Current Liabilities:
Accounts payable and accrued expenses 12,455 12,544 13,051
Accrued participations and residuals 1,822 1,770 1,770
Deferred revenue 3,040 2,380 2,380
Accrued expenses and other current liabilities 9,899 9,450 9,450
Current portion of long-term debt 2,132 1,743 1,743

Total current liabilities 0 29,348 27,887 28,394

Non Current Liabilities

Long-term debt 92,718 93,068 93,068

Collateralized obligation 5,170 5,172 5,172
Deferred income taxes 30,041 28,714 28,714
Other noncurrent liabilities 20,620 20,395 20,395
Commitments and contingencies
Redeemable noncontrolling interests 519 411 411

Total Non current liabilities 149,068 147,760 147,760

Total liabilities and stockholders equity 0 275,906 257,275 265,692

Check 0 1 1.00000
FY 2024 E FY 2025 E

17,871 24,860
14,805 15,567
4,406 4,406

37,082 44,833

12,720 12,780
8,650 9,450
490 490
56,937 56,833
58,494 58,494
59,365 59,365
27,275 26,718
12,497 12,497

236,428 236,627

273,509 281,460

51 51
0 0
39,412 39,412
64,977 71,607
-7,517 -7,517
-2,611 -2,611
94,312 100,942
2,731 3,747

97,043 104,689
 13,362 13,667
1,770 1,770
2,380 2,380
9,450 9,450
1,743 1,743

28,705 29,010

93,068 93,068
5,172 5,172
28,714 28,714
20,395 20,395

411 411

147,760 147,760

273,508 281,459

1
All Figures in USD Billions otherw FY 2020 FY 2021 FY 2022 FY 2023 E FY 2024 E

Property Plant and Equipment

Opening Balance: 110 110 112 123

Additions during the year 2.7 10.6 10.3
less: Disposals during the year
Adjustments
Total PPE Gross 110 112 123 133

Less: Accumulated Depn

Opening Bal 56 56 57 66
Additions during the year 1.3 9.3 10.1
Less: Disposals
Adjustments
Total Acc Dep 56 57 66 76
PPE Net 54 55 57 57

Intangible Assets

Opening Balance: 29,308 28,133

Additions during the year 3,483 3,634
less Depreciation for the year 4,657 4,493
Total gross 28,133 27,275

Capitalized Film & television Costs (IN Millions)

Opening Balance: 12,560 12,610

Net Changes during the year 50 110

Closing Balance for the year 12806 12,560 12,610 12,720

Total Capex 10.6 10.3

in Millions 10,621 10,253

Total Depreciation & Amortization (in Milllions) 13,957 14,616

FY 2025 E

133
10.8

144

76
10.9

87
57

27,275
3,821
4,378 0
26,718

12,720
60

12,780

10.8
10,781

15,263
All Figures in USD Millions otherwise stated FY 2020 FY 2021 FY 2022 FY 2023 E FY 2024 E

Retained earnings
Opening Balance 50,695 56,438 61,902 51,609 58,468
Net profit for the year 10,534 14,159 5,370 11,626 11,032
Others -134 6 -10 0 0
Repurchase of stock under employee plans -407 -4,088 -10,897 0 0
Dividend -4250 -4,613 -4,757 -4,767 -4,523
Closing Balance 56,438 61,902 51,608 58,468 64,977

Non Controlling Interest

Opening Balance 1,148 1,415 1,398 684 1,734
Net profit for the year 18 -377 -495 1,050 997
OCI 60 7 -29 0 0
Contributions / (distributions) 192 353 89 0 0
Other -3 0 -280 0 0
Closing Balance 1,415 1,398 683 1,734 2,731
FY 2025 E

64,977
11,246
0
0
-4,617
71,607

2,731
1,016
0
0
0
3,747
Business Model

The Company has 5 primary segments of revenue out of which cable communication is the greatest with 52% share in revenue
All the segments of the business are cyclical in nature
Also the business segments is consumer driven that means it is discretionary in the view of recession the company doesn't hav

SWOT
Strength
Established margins and strong free cash flow
Opportunities
The theme park provides an immense opportunity to grow due to presence across the world at key locations
Threats
The firm has significant customer base in eastern USA region any storm or extreme events in that part will affect the revenues
Weakness
The Company key business cable communication revenue has seen slowig gowth

We can also use relative valuation model to value the firm to refelect themarket consensus
test with 52% share in revenue.

ssion the company doesn't have much pricing power

key locations

at part will affect the revenues

Cable Customer
in mn
Customer relationshi FY2022
Residentisal 31.8
Commercial 2.5
Total 34.3
Home and Business pa 61.4
55.9%

Broadband Residentia 29.8

Video 15.6
Voice 7.9
Wireless 5.3