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Comcast

Comcast. Tyler Smith. Presentation Outline. Snapshot Current Position Profile Current News Financial Statements Industry Comparison Stock Comparison Trend Analysis Common Size Analysis Stock Valuation Model. EVA & MVA Model Free Cash Flow Model ValuePro Valuation

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Comcast

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  1. Comcast Tyler Smith

  2. Presentation Outline • Snapshot • Current Position • Profile • Current News • Financial Statements • Industry Comparison • Stock Comparison • Trend Analysis • Common Size Analysis • Stock Valuation Model • EVA & MVA Model • Free Cash Flow Model • ValuePro Valuation • Summary of Models • Analyst Recommendation • Risk • Recommendation

  3. Company Snapshot • Market Cap: 64.14 Billion • Industry: Broadcasting and Cable TV • Sector: Services • Recent Stock Price: $29.50 • 52wk High and low: high: $36.50 low: $26.25 • Beta: .96 • Ticker Symbol: CMCSA

  4. Current Position Comcast stock was acquired in 2002 in a spin-off involving AT&T stock after AT&T broadband was purchased by Comcast Corp. As part of the spin-off, each share of AT&T Broadband common stock was converted into the right to receive 0.3235 shares of new Comcast common stock. Prior to the acquisition, SMIP owned 100 shares of AT&T Corp. and ended with 32 shares of Comcast Class A common stock. 100 * .3235 = 32.35 shares (CMCSA)

  5. Current Position • 32 Shares • Spin-off date - November 15, 2002 • Acquired @ $25.62 for a value of $818.84 • Current Market Value @ $29.49 = $944 • Incurred gain to date = $125.16

  6. Company Profile Comcast Corp. develops, manages, and operates hybrid fiber-coaxial broadband cable communication networks. The Company also provides programming content for its subscribers. Comcast is implementing high-speed Internet access service and digital video applications such as Video on Demand. Competitors include Direct TV, Echostar and Time Warner Cable

  7. Current News Sept. 13: Comcast and Sony Pictures Entertainment announce programming deal Sept 27: Comcast. and Time Warner Inc. join in talks on a possible joint offer to acquire bankrupt cable company Adelphia Communications Corp. Oct. 12: Comcast and Time Warner Cable announce plans for a new regional sports network with the New York Mets in 2006 Oct. 27: Comcast releases Q3 earnings

  8. Financial Statements See handout…

  9. Industry Comparison

  10. Comcast vs. Competitors

  11. 1 Year Stock Comparison vs. S&P500

  12. 3 Year Stock Comparison vs. S&P500

  13. Trend Analysis

  14. Trend Analysis

  15. Common Size Analysis

  16. Stock Valuation

  17. EVA & MVA Model Inputs

  18. EVA & MVA Model

  19. Free Cash Flow Model

  20. Value Pro Model

  21. Summary of Valuations • Basic Stock Valuation • Constant Growth Model = $26.41 • Dividend Earnings Model = $26.72 • Price / Earnings Model = $30.27 • EVA - destroying S.H. Wealth • MVA - Creating S.H. Wealth • Free Cash Flow - Per Share Value = $36.66 • Value Pro - Intrinsic value = $24.73

  22. Risk • Risk Grade = 99 • 6 month: min=90; max=132 ; avg.=113 • CMCSA constitutes 0% of the Portfolios Risk due to our small holding

  23. Analysts Recommendations • Current Month Analyst Recommendations • Buys = 62.85% (22 analysts) • Holds = 37.14% (13 analysts) • Sells = 0% (0 analyst)

  24. Recommendation Buy 100 Shares at current market price Suggested Floor: - Keep current floor of $26.00/share

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