Comcast (CMCSA) stock closed at $40.20 on August 25, 2017. A majority of analysts continue to remain bullish on the stock. Currently, 32 analysts are covering the company, and 30 of them have rated the stock a “buy.” Two analysts have rated the stock a “hold.” There are no “sell” recommendations for the stock.
Analysts have set a target price of $46.21 for the stock and a consensus stock price estimate of $46. The stock is currently trading at a discount of 13.0% to its target stock price.
That indicates that analysts’ faith in the growth story of Comcast may be continuing. Now let’s look at Comcast’s valuation metrics.
Comcast’s valuation metrics
On August 25, 2017, Comcast had an enterprise value of $252.4 billion. Valuation metrics consist of price-based multiples and earnings-based multiples. Comcast has a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 8.4x and a forward PE (price-to-earnings) multiple of 17.9x. In contrast, Comcast’s peers Twenty-First Century Fox (FOXA), The Walt Disney Company (DIS), and Time Warner (TWX) had forward EV-to-EBITDA multiples of 8.1x, 9.6x, and 10.7x, respectively.
At the end of fiscal 2Q17, Comcast had a free cash flow of $2.2 billion. It had an EV-to-trailing-one-year free cash flow for the firm of 27.7x as of August 25, 2017.