Comcast Corporation (CMCSA) Discounted Future Market Cap

Comcast Corporation

CMCSA (NASDAQ)

(%)

Valuation
Comcast Corporation Discounted Future Market Cap

"""
    Model: Discounted Future Market Cap

# Render model description
model.render_description(r"""
## Discounted Future Market Cap

This model estimates the intrinsic value of a common share by projecting the Future Market Capitalization using the estimated PE Ratio and then discounting it to the Present using an Annual Required Rate of Return.
""")

# Initialize assumptions
assumptions.init({
    "data": {
        "%discount_rate": None,
        "beta": data.get("profile:beta", default=1),
        "%risk_free_rate": data.get("treasury:year10"),
        "%market_premium": data.get("risk:totalEquityRiskPremium"),
        "pe_ratio": data.get("ratio:priceEarningsRatio"),
        "%revenue_growth_rate": None,
        "%net_income_margin": None,
        "historical_years": 10,
        "projection_years": 5,
    },
    "hierarchies": [{
        "parent": "%discount_rate",
        "children": ["beta", "%risk_free_rate", "%market_premium"]
    }]
})

# Calculate cost of equity
cost_of_equity = assumptions.get("%risk_free_rate") + assumptions.get("beta") * assumptions.get("%market_premium")
assumptions.set("%discount_rate", cost_of_equity)

# Compute metrics
data.compute({
    "%grossMargin": "income:grossProfit / income:revenue",
    "%operating_margin": "income:operatingIncome / income:revenue",
    "%netMargin": "income:netIncome / income:revenue",
    "%revenueGrowthRate": "function:growth:income:revenue",
    "%netIncomeGrowthRate": "function:growth:income:netIncome",
    "%totalStockholdersEquityGrowthRate": "function:growth:balance:totalStockholdersEquity",

# Calculating NOPAT (Net Operating Profit After Taxes)
    "%taxRate": "income:incomeTaxExpense / income:incomeBeforeTax",
    "incomeTax": "income:operatingIncome * %taxRate",
    "nopat": "income:operatingIncome - incomeTax",

# Calculating Invested Capital
    "investedCapital": [
        "balance:totalNonCurrentAssets", "-", "balance:cashAndCashEquivalents", "+",
        "balance:totalCurrentAssets", "-", "balance:totalCurrentLiabilities"
    ],
    "%roic": "nopat / investedCapital",
})

data.set_default_range(f"{-assumptions.get('historical_years')}->0")

assumptions.set("%net_income_margin", data.average(f"%netMargin"))
assumptions.set_bounds(
    "%net_income_margin", low=0, high="100%"
)

assumptions.set("%revenue_growth_rate", data.average(f"%revenueGrowthRate"))
assumptions.set_bounds(
    "%revenue_growth_rate", low=0, high="25%"
)

# Compute forecasted values and ratios
data.compute({
    "income:revenue": f"""
        income:revenue:-1 * 
        (1 + {assumptions.get('%revenue_growth_rate')})
    """,
    "%revenueGrowthRate": "function:growth:income:revenue",
    "income:netIncome": f"income:revenue * {assumptions.get('%net_income_margin')}",
}, forecast=assumptions.get("projection_years"))

projected_revenue = data.get("income:revenue")
projected_net_income = data.get(f"income:netIncome:{assumptions.get('projection_years')}")

shares_outstanding = data.get("income:weightedAverageShsOut")
future_market_cap = assumptions.get("pe_ratio") * projected_net_income
discounted_future_market_cap = future_market_cap / (
            (1 + assumptions.get("%discount_rate")) ** assumptions.get("projection_years"))

stock_value = discounted_future_market_cap / shares_outstanding

# Set the final value
model.set_final_value({
    "value": stock_value,
    "units": "$"
})

# Render results
model.render_results([
    [stock_value, "Present Value", "$"],
    [projected_net_income, "Estimated net income", "$"],
    [future_market_cap, "Estimated market capitalization", "$"],
    [discounted_future_market_cap, "Market capitalization discounted to present", "$"],
    [shares_outstanding, "Shares Outstanding", "#"],
    [data.get("income:eps"), "Earnings Per Share (EPS)", "$"],
    [data.get("profile:price"), "Market Price", "$"],
    [data.get("ratio:priceEarningsRatio"), "Price to Earnings (PE) Ratio", "#"]
])

# Render chart
model.render_chart({
    "data": {
        "income:revenue": "Revenue",
        "income:netIncome": "Net Income"
    },
    "start": -assumptions.get("historical_years"),
    "end": "*",
    "properties": {
        "title": "Historical and forecasted data",
        "set_editable": [
            "income:revenue",
            "income:netIncome"
        ]
    }
})

# Render table for estimated future values
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "income:netIncome": "Net Income",
    },
    "start": -1,
    "end": "*",
    "properties": {
        "title": "Estimated Future Values",
        "order": "ascending",
        "number_format": "M"
    }
})

# Render historical values table
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "%grossMargin": "Gross Margin",
        "income:operatingIncome": "Operating Income",
        "%operating_margin": "Operating Margin",
        "income:netIncome": "Net Income",
        "%netMargin": "Net Margin",
    },
    "start": -assumptions.get("historical_years"),
    "end": 0,
    "properties": {
        "title": "Historical Values",
        "display_averages": True,
        "order": "descending",
        "number_format": "M"
    },
})

# Render historical growth rates table
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "income:netIncome": "Net Income",
        "%netMargin": "Net Margin",
        "%netIncomeGrowthRate": "Net Income Growth Rate",
        "balance:totalStockholdersEquity": "Stockholders Equity",
        "%totalStockholdersEquityGrowthRate": "Equity Growth Rate",
        "%roic": "Return on Invested Capital (ROIC)",
        "nopat": "After-tax Operating Income",
        "%taxRate": "Income Tax Rate",
        "investedCapital": "Invested Capital",
    },
    "start": -assumptions.get("historical_years"),
    "end": 0,
    "properties": {
        "title": "Historical Growth Rates",
        "display_averages": True,
        "order": "descending",
        "number_format": "M"
    },
})

# Set description for assumptions
assumptions.set_description({
    "%discount_rate": r"""
        ## Discount Rate

`Discount Rate` = `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium`

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

[Read More](https://www.investopedia.com/terms/c/costofequity.asp#mntl-sc-block_1-0-20)
    """,

"beta": r"""
        ## Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.
    """,

"%risk_free_rate": r"""
        ## Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time.
        By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.
    """,

"%market_premium": r"""
        ## Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.
    """,

"pe_ratio": r"""
        ## Price to Earnings (PE) Ratio

Estimated Price to Earnings (PE) Ratio at the end of the projection period.

`Future Market Cap` = `PE Ratio` * `Projected Net Income`
    """,

"%revenue_growth_rate": r"""
        ## Revenue Growth Rate

The annual revenue growth rate is applied to projected revenue starting from the second projection year onward.
    """,

"%net_income_margin": r"""
        ## Net Income Margin

Net Income expressed as a percentage of Revenue.
    """,

"historical_years": r"""
        ## Historical Years

The number of historical years used to calculate averages for historical data.
    """,

"projection_years": r"""
        ## Projection Years

The number of years for projecting the analysis into the future.
    """,
})

print("End of model.")

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Future Market Cap

Interactive Assumptions

Discount Rate Discount Rate `Discount Rate` = `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium` The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula. Read More	%
↳ Beta Beta Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.	#
↳ Risk Free Rate Risk-Free Rate The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.	%
↳ Market Premium Market Premium Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.	%
Pe Ratio Price to Earnings (PE) Ratio Estimated Price to Earnings (PE) Ratio at the end of the projection period. `Future Market Cap` = `PE Ratio` * `Projected Net Income`	#
Revenue Growth Rate Revenue Growth Rate The annual revenue growth rate is applied to projected revenue starting from the second projection year onward.	%
Net Income Margin Net Income Margin Net Income expressed as a percentage of Revenue.	%
Historical Years Historical Years The number of historical years used to calculate averages for historical data.	#
Projection Years Projection Years The number of years for projecting the analysis into the future.	#

Results
Present Value	22.82 USD
Estimated net income	20.93 Bil. USD
Estimated market capitalization	120.6 Bil. USD
Market capitalization discounted to present	82.99 Bil. USD
Shares Outstanding	3.64 Bil.
Earnings Per Share (EPS)	5.38 USD
Market Price	31.37 USD
Price to Earnings (PE) Ratio	5.76

Historical and forecasted data

Monetary values in USD

{"sectionId": "section-chart-1", "sectionType": "chart", "title": "Historical and forecasted data", "timeseries": "annual", "series": [{"label": "Revenue", "mappingKey": "income:revenue", "data": [{"l": "2016", "x": "2016-12-31", "y": 80403000000}, {"l": "2017", "x": "2017-12-31", "y": 84526000000}, {"l": "2018", "x": "2018-12-31", "y": 94507000000}, {"l": "2019", "x": "2019-12-31", "y": 108942000000}, {"l": "2020", "x": "2020-12-31", "y": 103564000000}, {"l": "2021", "x": "2021-12-31", "y": 116385000000}, {"l": "2022", "x": "2022-12-31", "y": 121427000000}, {"l": "2023", "x": "2023-12-31", "y": 121572000000}, {"l": "2024", "x": "2024-12-31", "y": 123731000000}, {"l": "2025", "x": "2025-12-31", "y": 123707000000}, {"l": "2026", "x": "2026-12-31", "y": 129753798160, "oy": 129753798160, "e": true, "d": 2026, "g": 4.89, "og": 4.89}, {"l": "2027", "x": "2027-12-31", "y": 136096163814, "oy": 136096163814, "e": true, "d": 2027, "g": 4.89, "og": 4.89}, {"l": "2028", "x": "2028-12-31", "y": 142748544301, "oy": 142748544301, "e": true, "d": 2028, "g": 4.89, "og": 4.89}, {"l": "2029", "x": "2029-12-31", "y": 149726093146, "oy": 149726093146, "e": true, "d": 2029, "g": 4.89, "og": 4.89}, {"l": "2030", "x": "2030-12-31", "y": 157044704579, "oy": 157044704579, "e": true, "d": 2030, "g": 4.89, "og": 4.89}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": false}, {"label": "Net Income", "mappingKey": "income:netIncome", "data": [{"l": "2016", "x": "2016-12-31", "y": 8695000000}, {"l": "2017", "x": "2017-12-31", "y": 22714000000}, {"l": "2018", "x": "2018-12-31", "y": 11731000000}, {"l": "2019", "x": "2019-12-31", "y": 13057000000}, {"l": "2020", "x": "2020-12-31", "y": 10534000000}, {"l": "2021", "x": "2021-12-31", "y": 14159000000}, {"l": "2022", "x": "2022-12-31", "y": 5370000000}, {"l": "2023", "x": "2023-12-31", "y": 15388000000}, {"l": "2024", "x": "2024-12-31", "y": 16192000000}, {"l": "2025", "x": "2025-12-31", "y": 19803000000}, {"l": "2026", "x": "2026-12-31", "y": 17296181294, "oy": 17296181294, "e": true, "d": 2026, "g": -12.66, "og": -12.66}, {"l": "2027", "x": "2027-12-31", "y": 18141618636, "oy": 18141618636, "e": true, "d": 2027, "g": 4.89, "og": 4.89}, {"l": "2028", "x": "2028-12-31", "y": 19028380955, "oy": 19028380955, "e": true, "d": 2028, "g": 4.89, "og": 4.89}, {"l": "2029", "x": "2029-12-31", "y": 19958488216, "oy": 19958488216, "e": true, "d": 2029, "g": 4.89, "og": 4.89}, {"l": "2030", "x": "2030-12-31", "y": 20934059120, "oy": 20934059120, "e": true, "d": 2030, "g": 4.89, "og": 4.89}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": false}], "editableDates": {"2026-12-31": 42, "2027-12-31": 43, "2028-12-31": 44, "2029-12-31": 45, "2030-12-31": 46}, "properties": {"display_table": true}, "width": "full"}

Edit Chart Values	2026-12-31	2027-12-31	2028-12-31	2029-12-31	2030-12-31

↳ Growth Rate

Estimated Future Values

Monetary values in USD amounts except #	2025 Dec 31	LTM Feb 08	2026 Dec 31	2027 Dec 31	2028 Dec 31	2029 Dec 31	2030 Dec 31
Revenue	123,707	123,707	129,754	136,096	142,749	149,726	157,045
Revenue Growth Rate	-0.019%	0%	4.89%	4.89%	4.89%	4.89%	4.89%
Net Income	19,803	19,803	17,296	18,142	19,028	19,958	20,934

Monetary values in USD

amounts except #

2025
Dec 31

LTM
Feb 08

2026
Dec 31

2027
Dec 31

2028
Dec 31

2029
Dec 31

2030
Dec 31

Revenue

123,707

129,754

136,096

142,749

149,726

157,045

Revenue Growth Rate

-0.019%

4.89%

Net Income

19,803

17,296

18,142

19,028

19,958

20,934

Historical Values

Monetary values in USD amounts except #	Average	LTM Feb 08	2025 Dec 31	2024 Dec 31	2023 Dec 31	2022 Dec 31	2021 Dec 31	2020 Dec 31	2019 Dec 31	2018 Dec 31	2017 Dec 31	2016 Dec 31
Revenue	109,316	123,707	123,707	123,731	121,572	121,427	116,385	103,564	108,942	94,507	84,526	80,403
Cost of Revenue	46,349	49,401	49,401	51,827	51,098	52,034	52,254	46,221	47,393	40,709	35,485	34,021
Gross Profit	63,012	74,306	74,306	71,904	70,474	69,393	64,131	57,343	61,549	53,798	49,544	46,382
Gross Margin	57.6%	60.07%	60.07%	58.11%	57.97%	57.15%	55.1%	55.37%	56.5%	56.92%	58.61%	57.69%
Operating Income	20,358	20,674	20,674	23,298	23,313	22,624	20,817	17,726	21,305	19,007	17,576	16,920
Operating Margin	18.78%	16.71%	16.71%	18.83%	19.18%	18.63%	17.89%	17.12%	19.56%	20.11%	20.79%	21.04%
Net Income	14,313	19,803	19,803	16,192	15,388	5,370	14,159	10,534	13,057	11,731	22,714	8,695
Net Margin	13.33%	16.01%	16.01%	13.09%	12.66%	4.42%	12.17%	10.17%	11.99%	12.41%	26.87%	10.81%

Historical Growth Rates

Monetary values in USD amounts except #	Average	LTM Feb 08	2025 Dec 31	2024 Dec 31	2023 Dec 31	2022 Dec 31	2021 Dec 31	2020 Dec 31	2019 Dec 31	2018 Dec 31	2017 Dec 31	2016 Dec 31
Revenue	109,316	123,707	123,707	123,731	121,572	121,427	116,385	103,564	108,942	94,507	84,526	80,403
Revenue Growth Rate	4.89%	0%	-0.019%	1.78%	0.119%	4.33%	12.38%	-4.94%	15.27%	11.81%	5.13%	7.91%
Net Income	14,313	19,803	19,803	16,192	15,388	5,370	14,159	10,534	13,057	11,731	22,714	8,695
Net Margin	13.33%	16.01%	16.01%	13.09%	12.66%	4.42%	12.17%	10.17%	11.99%	12.41%	26.87%	10.81%
Net Income Growth Rate	27.07%	0%	22.3%	5.22%	186.6%	-62.07%	34.41%	-19.32%	11.3%	-48.35%	161.2%	6.52%
Stockholders Equity	82,393	96,904	96,904	85,560	82,703	80,943	96,092	90,323	82,726	71,613	68,616	53,943
Equity Growth Rate	6.27%	0%	13.26%	3.45%	2.17%	-15.77%	6.39%	9.18%	15.52%	4.37%	27.2%	3.2%
Return on Invested Capital (ROIC)	7.75%	6.87%	6.87%	9.03%	7.88%	5.34%	6.34%	5.78%	7.34%	6.72%	16.21%	6.85%
After-tax Operating Income	16,141	15,775	15,775	19,809	17,198	12,002	15,083	13,486	16,701	14,792	26,269	10,663
Income Tax Rate	19.85%	23.7%	23.7%	14.97%	26.23%	46.95%	27.54%	23.92%	21.61%	22.18%	-49.46%	36.98%
Invested Capital	214,395	229,626	229,626	219,300	218,363	224,637	237,866	233,333	227,622	220,267	162,041	155,664